Private residential prices set to surge 4-7% in 2025 as demand outpaces supply, but will developers deliver?

SINGAPORE: The prices of private residential units in Singapore are expected to experience moderate growth in 2025, with a projected increase ranging from 4% to 7%.

According to the Singapore Business Review, this forecast, revealed by property consultancy Huttons, comes on the back of strong economic growth, which is expected to drive demand for housing across various segments.

The firm also expressed cautious optimism for the performance of the new sales market in 2025, as pent-up demand from 2024 may carry over into the upcoming year.

Growth in sales and new developments in 2025

Developers are predicted to sell between 7,000 and 8,000 private residential units in 2025, while the resale market is expected to see sales of approximately 10,000 to 12,000 units.

This projected sales activity is supported by a robust pipeline of new developments set to launch in the year ahead. Huttons anticipates 22 new projects will be introduced in 2025, adding 11,787 new units to the market.

Notable developments include Aurelle of Tampines (760 units) and an executive condominium (EC) at Plantation Close (560 units).

A closer look at the locations reveals that the Core Central Region (CCR) is expected to see up to 2,533 new units launched in 2025, with projects such as Aurea, Holland Drive, Marina View Residences, Orchard Boulevard, River Valley Green, and Robertson Walk leading the way.

The Rest of Central Region (RCR) will add around 2,994 units, roughly the same number as the previous year, with developments like Arina East Residences, Bloomsbury Residences, Margaret Drive, and The Orie among the key projects.

The Outside Central Region (OCR) will deliver the largest share of new supply, with 3,595 units expected, representing a 10% increase compared to 2024, and developments such as Bagnall Haus, Lentor Central Residences, and Parktown Residence contributing to the growth.

Government’s potential move to boost supply

In response to strong demand, Huttons suggested that the Singapore government may look to increase its supply of residential units for the first half of 2025.

This could involve raising the Government Land Sales (GLS) programme by 10%, adding up to 5,500 units to meet the needs of the market.

As the demand for housing continues to surge, these efforts by both the private sector and government will play a pivotal role in shaping the property landscape for 2025.