One Segment of the Singapore Property Market Is Still Climbing — Even as the Rest Slowed in 2025

The 4Q2025 real estate statistics were published by the Urban Redevelopment Authority (URA) on Jan 23.

Private Residential Market

Overall, prices in the private residential market rose by a marginal 0.6% in the last quarter of 2025, and private home prices across the entire year increased by 3.3%.

It’s clear from the housing data posted throughout 2024 and 2025 that the rate of price increase in the overall private residential market has been gradually slowing.

Last year saw an especially muted price performance, with the highest quarterly growth at just 1% in 2Q2025. The yearly increase in private home prices in 2025 is also the slowest growth since 2020, when private home prices rose by 2.2% y-o-y.

However, the result is not uniform across all market segments. The landed housing market posted the steepest price increase of 3.4% q-o-q in 4Q2025, and it ended the year with a 7.6% y-o-y increase – the eighth successive year this segment has posted an annual price increase.

In contrast, the non-landed segment notched a yearly price increase of 2.3%, which is the slowest yearly increase since this segment recorded a 1.9% y-o-y growth in 2019.

Most of the price growth in the non-landed private residential market was led by gains in the city-fringe, or Rest of Central Region (RCR), and suburbs, or Outside Central Region (OCR) – which posted yearly price increases of 1.6% and 3.2%, respectively.

Both RCR and OCR private home prices have increased for nine consecutive years since 2017, although the pace has tapered in recent months.

Private home rentals

Meanwhile, private residential rentals recorded a 0.5% q-o-q decline in 4Q2025, reversing the 1.2% q-o-q growth posted in the previous quarter. This took the overall yearly rental growth to 1.9%, reversing the 1.9% y-o-y decline the market posted in 2024.

The volume of rental contracts closed last year rose to a three-year high in 2025 to 89,376 contracts – up from 82,268 and 86,476 contracts in 2023 and 2024, respectively.

In general, the reversal in the rental market stems from a tighter stock of rental properties on the market and healthy private residential leasing demand.

Here’s what Kelvin Fong, CEO of PropNex, had to say about the latest private residential statistics.

The combination of steady price growth in the private home market and recovery in the rental market suggests that the market could be in a “Goldilocks” phase, where it is not too cold, nor too hot, but balanced and just right.

“That the robust sales in 2025 did not lead to rapid price spikes also reflects developers’ discipline in pricing units, and their focus on driving healthy take-up rates at launch with well-calibrated prices in a highly value-conscious market.”

“We expect the stability and the sales momentum last year could spill into 2026. The continued moderate interest rates will help to anchor confidence and improve affordability, encouraging genuine buyers to enter the market.”

Factors supporting the private residential market in 2026

A continued environment of moderate interest rates will help to anchor confidence and improve affordability, encouraging genuine buyers to enter the market this year.

As of Jan 23, the three-month compounded Singapore Overnight Rate Average (SORA), which banks use to price home loan packages, stood at about 1.14% per annum (pa), the lowest rate since July 2022.

“To this end, we note that some two-year fixed rate home loan packages are going at 1.4% to 1.5% p.a. currently, markedly lower than more than 4% p.a. at the end of 2022, which can help to lighten debt burdens,” says Fong.

The levelof unsold private home inventory in the market will also help to support the market in 2026. According to URA data, there were 14,859 unsold, uncompleted private homes (excluding executive condos) in the market at the end of 2025.

This is the lowest level of unsold new private home inventory in 15 quarters. Given that the 10-year average developer’s sales are about 9,100 units (this is the average of how many new condo units are bought each year), it would take about two years for this unsold inventory to be absorbed by the market.

Resale HDB Market

On the other hand, resale HDB prices notched the first flat reading since 1Q2020, and bringing an end to four consecutive quarters of modest price increases in the public housing market. For the entire year, HDB resale prices inched up 2.9%, a dramatic moderation considering the 9.7% y-o-y price increase the market recorded in 2024.

The volume of resale HDBs also fell by more than a quarter to 5,256 sales in 4Q2025, which marks a 27.2% q-o-qdecline. It is also an 18.2% decline in resale volume compared to the same period in 2024.

Separately, there were 1,594 million-dollar flats transacted in 2025, about 54.7% higher than the previous peak of 1,035 units in 2024. Over half of these million-dollar flat deals involved newer flats that were aged 15 years or below. The demand trends indicate that there is still strong buying demand for newer flats in centrally-located mature estates.

Only eight of the 26 HDB towns recorded median transaction prices of over $750,000, and the eight towns are in mature estates.

Here’s what Eugene Lim, key executive officer of ERA Singapore, had to say about the latest statistics:

“The slower pace of (resale price) growth in the quarter, and over the year as a whole, can be attributed to the limited supply of minimum occupation period (MOP) flats, which stood at 6,973 units in 2025. This marks the lowest MOP supply in 11 years since 2014, when only 5,301 units entered the resale market.”

“With fewer newer eligible resale flats entering the market, transaction activity remained constrained, resulting in more measured price movements. MOP flats have been a key driver of transactions and price growth, and their constrained supply across 2025 has led to the deceleration in growth rate.”

Meanwhile, here are excerpts of the market commentary for the Office and Retail Markets.

The office market in 2025, by Tricia Song, head of research, Singapore and Southeast Asia, CBRE.

• Singapore’s office rents in the Central Region recorded a modest recovery in 4Q2025, marking a turnaround after two consecutive quarters of marginal contraction.
• The URA Office Rental Index for the Central Region rose by 0.4% q-o-q in 4Q2025, reversing a 0.1% q-o-q decline in 3Q2025 and 0.3% q-o-q fall in 2Q2025. For the whole of 2025, office rents edged up by 0.3%, following a flat performance in 2024.
• Core CBD (Grade A) rents increased by 0.8% q-o-q to $12.30 psf/mth in 4Q2025. For the full year, rents rose by 2.9%, outperforming the modest 0.4% increase recorded in 2024.
• Core CBD Grade A vacancy rates declined steadily over the year, falling from 5.9% in 1Q2025 to 4.5% by year‑end, reflecting sustained demand for prime office space. Notably, vacancy in the Marina Bay submarket declined steadily from a peak of 9.4% in Q3 2024 to a new low of 4.2% in Q4 2025.
• CBRE observed active demand in 2025 came from insurance and asset management firms, financial software and cryptocurrency‑related tech companies, as well as coworking operators.

Commenting on the retail market, Chua Yang Liang, head of research and consultancy at JLL.

• Singapore’s retail property market remains resilient, but costs and consumer sentiment keep the spotlight on occupancy. URA’s latest indices show islandwide retail space rent growth slid to 0.6% quarter-on-quarter in 4Q2025 as compared to the 0.9% in the previous quarter.
• Prices of retail spaces, on the other hand, moved up by 1.7% quarter-on-quarter, reversing the decline of 0.7% previously; tenant demand remains steady as landlords step up upgrades and repositioning.
• In a mature retail market like Singapore, occupancy trends and tenant stability are increasingly important indicators of performance—not just the headline rent numbers. With operating costs already elevated, retailers are more sensitive to total occupancy costs, and that naturally places a ceiling on how far rents can rise without affecting sustainability.
• With consumer sentiment softer and the global growth outlook moderating, households may stay more selective on discretionary spending in the near term—potentially tempering rental growth momentum and space expansion plans.