In the private property sector, the price index rose by 0.6% in 1Q2025, moderating from the 2.3% growth observed in 4Q2024. This increase reflects a steady, yet disciplined demand environment supported by a stream of new launches such as The Orie, Elta, Parktown Residence, etc. These developments, spanning the Core Central Region (CCR), Rest of Central Region (RCR), and Outside Central Region (OCR), have appealed to a broad spectrum of buyers including upgraders, owner-occupiers, and long-term investors.

Notably, the RCR and OCR segments remained price-resilient thanks to a healthy flow of project launches. In contrast, the CCR experienced more subdued price movements due to limited new launches, although the debut of One Marina Gardens is expected to support future recovery. The strategic rollout of sites from the Government Land Sales (GLS) programme continues to maintain a stable absorption rate, preventing supply shocks while ensuring adequate buyer choice.

On the public housing front, the HDB resale market saw a moderated price increase of 1.5% in 1Q2025, following a stronger 2.6% growth in 4Q2024. The recalibration reflects the impact of expanding supply and evolving affordability measures. A key contributor was the significant Build-To-Order (BTO) and concurrent Sale of Balance Flats (SBF) exercise in the first quarter, which saw the launch of 5,032 BTO flats and 5,590 SBF flats. Of particular note, 4 in 10 units in the SBF launch were already completed, offering quicker move-in timelines and attracting strong interest from buyers.

The latest SBF exercise was the largest since November 2020, and ongoing policy enhancements—such as increased second-timer quotas, the expansion of the Deferred Income Assessment scheme, and the Family Care Scheme—have further improved access and affordability.

Going forward, over 50,000 new flats will be launched across Singapore over the next three years in areas like Woodlands, Bayshore, and Mount Pleasant. In 2025 alone, about 3,800 BTO flats with waiting times under three years will be rolled out, providing attractive alternatives to the resale market. These efforts are expected to ease demand pressures and ensure broader accessibility.

Together, these market trends highlight a well-calibrated approach toward ensuring sustainable housing development, balancing market demand with strategic supply enhancements in both the private and public segments.

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Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg