Analysis of Residential Property Price Trends and Forecasts for 2025

Residential property prices are forecasted to experience moderate growth of around 3-4% in 2025, reflecting a stabilizing market with continued buyer demand and low unsold inventory. This growth is supported by strong economic fundamentals, stable employment, and a more favourable interest rate environment compared to previous years.

Key points in the analysis and forecast for 2025 include:

• The Property Price Index for private residential properties rose by approximately 0.81% quarter-on-quarter and 3.33% year-on-year in early 2025, with new launches in suburban and fringe areas driving gains.
• Non-landed private properties (condominiums) led price growth with a 0.95% quarterly increase and 4.74% annual rise, while landed properties saw a slight annual decline of 1.3% but a modest quarterly recovery.
• The high-end non-landed segment showed more modest growth, with prices increasing about 0.6% quarter-on-quarter and 0.7% year-on-year.
• Market growth is expected to moderate compared to the sharper increases in 2023-2024, aligning more closely with inflation rates and reflecting a balanced market influenced by government cooling measures and cautious buyer sentiment.
• The Housing Price Index reached a record high of 213.20 points in Q2 2025, with forecasts projecting continued upward trends to around 231 points in 2026 and 241 points in 2027, indicating sustained but measured price appreciation.
• Economic factors such as a robust GDP growth forecast of 2.8% for 2025, low unemployment, and lower mortgage interest rates (around 2.5-2.6%) support buyer confidence and demand.
• Supply-side constraints, including stable land prices and high construction costs, suggest new home prices will remain firm, with cautious developer participation in land tenders limiting oversupply risks.
• Demand drivers include new household formation, a large pool of upgraders from public housing, rising incomes, and a preference for long-term value over speculative investments.

Overall, the residential property market is expected to maintain stable and moderate price growth in 2025, with a balanced interplay of demand and supply factors, supported by favourable economic conditions and government policies aimed at market stability.