SINGAPORE: Analysts are optimistic that Singapore’s private residential property market will see a significant rebound in 2025, following a surge in buyer interest in the latter half of 2024. According to the latest Singapore Business Review report, this optimism comes after a dramatic 92% drop in sales in December, attributed to rising mortgage rates. However, with mortgage rates stabilizing and economic conditions improving, the outlook for the coming year is more favourable.
Improved market sentiment and economic conditions driving growth
Chia Siew Chuin, Head of Residential Research at JLL, believes that the private residential market is well-positioned for growth in 2025. A combination of factors, including improved market sentiment, moderated interest rates, and healthy household balance sheets, is expected to drive demand. Chia also pointed to key elements such as low unemployment, rising public flat resale prices, and a strong pipeline of upcoming launches.
“Attractive pricing remains key to driving sales,” Chia emphasized, adding that developers are likely to have pricing flexibility due to lower land acquisition costs in 2023. This, combined with an influx of new launches, is expected to stimulate the market.
Record number of new project launches expected
Christine Sun, Chief Researcher & Strategist at OrangeTee, shared an optimistic forecast for 2025, anticipating a surge in new home sales driven by a higher volume of new project launches. She noted that approximately 23 projects are expected to be introduced this year, potentially adding over 10,000 new units (excluding Executive Condominiums) to the primary market, a significant increase from the 6,647 units launched in 2024. With a strong supply pipeline, there is confidence that this increase in launches will generate higher sales numbers.
Key upcoming projects include The Orie (777 units) at Lorong 1 Toa Payoh, set to launch on January 18, 2025, Elta (501 units) at Clementi Avenue 1, and ParkTown Residence (1,193 units) at Tampines Avenue 11. Tricia Song, CBRE’s Head of Research for Singapore and Southeast Asia, highlighted these projects as likely to draw strong interest due to pent-up demand in their respective areas.
Market prices expected to rise
As the market regains momentum, analysts predict a modest increase in property prices. Forecasts suggest a median price rise of 3% to 6% in 2025, as both supply and demand factors work in tandem. With a stronger economic outlook and more affordable mortgage rates, Singapore’s private residential property sector is set for a year of recovery and growth.