What is the current market trend for private property in Singapore?

The current market trend for private property in Singapore is characterized by several key factors:

Price Growth

Private property prices are forecasted to rise by 3% to 4% in 2025, driven by a significant drop in new completions. Only 5,348 private home units are expected to be completed in 2025, a sharp decline from the previous year, which will increase demand and place upward pressure on prices, particularly in prime areas like the Core Central Region (CCR) and the Rest of Central Region (RCR).

Strong Demand

Despite the supply crunch, demand for private residential properties is expected to remain robust. It is anticipated that 8,000 to 9,000 new private homes will be transacted in 2025, up from 6,500 units in 2024.

Economic Stability

The stable economic environment, with GDP growth expected at the upper end of the 2% to 3% forecast range, will bolster buyer confidence. Improved employment rates and economic recovery will also strengthen purchasing power, especially for high-income individuals and expatriates.

Resale Homes

Demand for resale homes is expected to remain strong, as many buyers prefer move-in-ready properties to avoid extra taxes. Resale homes are also popular for their more affordable prices and larger living spaces.

Rental Market

Rental prices are anticipated to rise by 2% to 4% in 2025, continuing the recovery seen in late 2024. Tight rental inventory and renewed demand from expatriates and corporate relocations make private property an appealing investment for rental yields.

New Home Launches

Several new projects are set to launch in the first half of 2025, bringing a total of 8,025 new units to the market, which could help ease the housing supply shortage for resale properties.

Overall, the private property market in Singapore is expected to experience steady growth driven by economic recovery, constrained supply, and strong investor confidence. Luxury homes and prime locations are particularly highlighted as key segments offering opportunities for both lifestyle buyers and long-term investors.