In the first quarter of 2025, Singapore’s private residential property price index rose by 0.8%, reflecting a deceleration from the previous quarter’s 2.3% increase, yet exceeding the preliminary estimate of 0.6%. This modest increase highlights a shift in the market dynamics, as the growth rate slows while still maintaining a positive trajectory. It signals evolving trends within Singapore’s property landscape, revealing insights into buyer preferences and regional developments.
Non-landed properties, a significant segment of the market, recorded a 1% quarter-on-quarter price increase. The Rest of Central Region (RCR) emerged as a notable performer, achieving the highest growth in this category with a 1.7% increase quarter-on-quarter and an impressive 7.3% year-on-year. The RCR’s robust performance underscores the area’s rising appeal, which may be due to a combination of factors including improved accessibility and lifestyle amenities, attracting a diverse pool of buyers.
The narrowing price gap between the Core Central Region (CCR) and the RCR has also attracted attention, with the disparity now standing at just 1.0%. This difference is the smallest recorded since the first quarter of 2013, suggesting a shift in buyer sentiment toward properties in the RCR compared to the traditionally more expensive CCR. Conversely, the median price gap between the CCR and Outside Central Region (OCR) remains stable at 16.3%, indicating that while buyers are drawn to the RCR, the OCR still maintains its distinct market segment.
The deceleration in price growth coincides with significant project launches during this quarter. Noteworthy developments such as The Orie and ParkTown Residence have entered the market, achieving high sales rates of 89%. The average prices for these new launches stood at $2,703 per square foot for The Orie and $2,362 per square foot for ParkTown Residence, demonstrating the strong demand for new properties.
These new launches not only add to the housing supply but also reflect the shifting preferences of buyers who may be increasingly favoring new developments over resale options. Market dynamics indicate a clear trend toward new launches, with resale transactions now accounting for only 49.1% of total private home sales, marking the lowest proportion in 19 quarters.
This change suggests that buyers are willing to invest in newly built properties, which often come with modern amenities and potentially lower maintenance needs compared to older resale homes. As buyers shift their focus, developers are likely to respond with more innovative offerings tailored to the evolving demands of the market.
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News Source: Edgeprop
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