Next year is expected to be an exciting time for Singapore, mainly because of the upcoming general election. While the property market probably won’t see major disruptions, some small changes might happen.
Globally, economies are facing uncertain times, especially after the U.S. presidential election. Changes in U.S. policies could affect economies worldwide, including real estate. For example, policies like tax cuts and tariffs introduced by the Trump administration are meant to boost the U.S. economy. These steps might create more jobs and raise wages but could also lead to inflation. This might limit the U.S. Federal Reserve’s ability to cut interest rates further. Trade disputes could also disrupt supply chains, affecting industries like manufacturing and construction.
Amid these challenges, several trends are likely to shape Singapore’s property market in 2025.
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Private Home Prices: Steady Growth Ahead 🏠
The private housing market is now more stable. In 2024, private home prices are expected to grow by 2% to 2.5%, slower than the 6.8% increase in 2023 and 8.6% in 2022. This slower growth is due to cooling measures, less housing supply, and higher interest rates.
In 2025, prices are expected to grow more, rising by 4% to 7%. Resale prices might go up as fewer completed homes are available. In 2024, private home completions dropped by 54.4% to 9,103 units from 19,968 units in 2023. By 2025, completions might fall further by 41.3%, leaving only 5,348 units available. This will likely increase demand for resale homes, especially from HDB upgraders and buyers looking for larger spaces.
The supply shortage is expected to be most severe in suburban areas, with only 2,010 units expected to be completed in 2025—much lower than the 10-year average of 7,143 units. The city fringe and prime areas will also see significant declines in supply, tightening the private resale market further.
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New Launches to Address Supply Shortfall 🏗️
The primary market is set to introduce more new homes in 2025, which should help balance the limited resale market supply. Around 24 new developments, adding over 11,000 units (excluding executive condominiums), are expected to launch. Even with delays, at least 19 projects with about 8,513 units will likely proceed.
Key projects to look out for include:
Parktown Residence in Tampines Avenue 11 (1,193 units)
Marina Gardens Residences in Marina Gardens Lane (937 units)
The Orie in Lorong 1 Toa Payoh (777 units)
GLS sites in Zion Road (735 and 610 units)
W Residences Singapore in Marina View (683 units)
Elta in Clementi Avenue 1 (501 units)
Three executive condominium (EC) projects are also planned:
Aurelle of Tampines (760 units)
An EC in Jalan Loyang Besar (710 units)
Another EC in Plantation Close (560 units)
Nine major projects, each offering over 500 units, are expected to boost sales. In 2025, new home sales could reach 7,000–9,000 units, compared to an estimated 6,200–6,400 units in 2024.
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Recovery in Private Rents 💼
The private rental market is beginning to bounce back. After hitting a low point in the second quarter of 2024, rents rose slightly by 0.8% in the third quarter. This recovery is due to more tenants moving from public to private housing as the price gap narrows.
In 2025, rents are expected to rise by 2% to 4%, thanks to a smaller supply of rental properties and better job opportunities. The IMF predicts steady global growth in 2025, with lower costs and stronger consumer confidence helping businesses hire more expatriates. This will likely benefit Singapore’s rental market. 📈
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HDB Resale Market: Moderate Price Growth 🏘️
Public housing supply will play a key role in the HDB resale market in 2025. In 2024, about 28,500–30,000 resale flats were sold, many for over a million dollars. This trend was driven by fewer flats reaching their Minimum Occupation Period (MOP), reducing the number of resale units available.
In 2025, the supply of MOP flats is expected to hit an 11-year low of 6,974 units, down from 30,920 units in 2022. As a result, HDB resale prices are forecast to rise by 4% to 6%, which is slower than the 7.5%–8.5% increase expected in 2024. The steady supply of Build-To-Order flats will also help slow price growth. Singapore’s property market in 2025 offers both opportunities and challenges. While limited supply and high demand are likely to push prices up, government policies and global economic trends will significantly influence the market. Buyers and investors should stay informed and flexible as the landscape evolves. 🌏
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