Singapore’s Private Property Market Cools in Q1 2025 – Is This a Turning Point?

Authored by Raymond Tiah

Q1 2025: Is Singapore’s Private Home Market Finally Cooling?

After years of strong price growth, Singapore’s private housing market showed signs of moderation in Q1 2025.

With price growth slowing and transaction volumes dropping, buyers and sellers alike are asking: Is this the start of a new phase in the market?

Let’s take a closer look.

Home Prices See the Slowest Growth Since 2020

• Private home prices rose by just 0.6% in Q1 2025, compared to 2.3% growth in Q4 2024.

• Key drivers of the slowdown:

  • Higher borrowing costs amid elevated interest rates

  • More cautious buyer sentiment due to economic uncertainty
    

While prices are still inching upwards, the momentum is clearly slowing—a potential sign that the market is transitioning into a more balanced phase.

15% Fewer Homes Sold

Buyer hesitation is showing up in transaction data:

• Private home sales volume dropped 15% quarter-on-quarter.

• Higher prices, tighter loan conditions, and affordability worries are likely pushing buyers to delay decisions.

• Developers may respond with more incentives and strategic pricing to drive sales in the coming months.
  

Mass Market (OCR) Feeling the Pressure

• OCR (Outside Central Region), traditionally the most affordable segment, saw its price growth slow sharply to just 0.3%, down from 3.3% in Q4 2024.
  

• First-time buyers and HDB upgraders—a key engine for OCR demand—may be holding back due to affordability concerns.

Affordability remains a growing issue even in suburban projects, and developers targeting this segment may have to adjust expectations.

Biggest Housing Supply Surge in Years

2025 is bringing the largest new supply injection in recent memory:

• 5,030 new private homes and 2,000 new Executive Condominiums (ECs) expected to launch this year.

• Government Land Sales (GLS) supply is 60% higher than the 2021–2023 annual average.
  

This new wave of supply could help ease price pressures—but whether it fully offsets demand depends on how quickly buyers return to the market.

Opportunities in a Changing Market

The cooling trends could mean:

• Buyers may find better negotiation power and more realistic pricing.

• Sellers will need to be more strategic in pricing to stand out.

  In a market that’s becoming more sensitive to value, timing, positioning, and careful planning are more important than ever.
  

Take Action

Whether you’re buying, selling, or investing, understanding these market shifts gives you an advantage.

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