While the Housing Index reached a record-shattering 215.1 points in the third quarter of 2025, a massive leap from the mere 8.9 points recorded back in 1975, the local appetite for real estate remains surprisingly vigorous.
While the Housing Index reached record-shattering levels, the local appetite for real estate remains surprisingly vigorous.
The private residential Property Price Index rose about 3.3% year-on-year in the first quarter of 2025, signaling that growth is moderating but certainly continuing, keeping investors on their toes. Economists project the Housing Index will climb to 231 points in 2026 and 241 points in 2027, implying a continued structural uptrend for the coming years ahead.
Experts generally forecast 3–5% private home price growth, a noticeable slowdown from earlier double-digit increases. Data reflects this cooling specifically in the high-end segment, which saw its first annual price contraction since late 2020.
Transaction volumes tell a louder story about demand momentum. The Urban Redevelopment Authority recorded 7,261 private units sold in the first quarter of 2025, a staggering 71.7% year-on-year increase.
The third quarter saw robust activity with 7,404 residential units transacted, and by October, monthly new home sales hit 2,424 units, a key spike.
While CBRE conservatively projects 7,000–8,000 new home sales, others believe developers could actually move around 11,000 units. PropNex even anticipates up to 15,000 resale transactions, proving the market is truly buzzing. Much of this resale liquidity is driven by the fact that over 100,000 HDB flats reached MOP between 2019-2023, fueling the upgraders’ market.
Supply pipeline dynamics are increasingly shifting too, as the first quarter saw 3,139 new private units launched.
Sales totaled 3,375 units during that period, almost triple the volume from early 2024, largely driven by mass-market launches in the Outside Central Region where developers employ calibrated pricing strategies.
However, this obsession comes with a hefty price tag, as private home prices are estimated at about 16.9 times the median annual household income.
This indicates stretched affordability, yet buyer sentiment remains boosted by benign interest rates and a strong “store of wealth” mentality among established baby boomers.
Despite high nominal values, housing loan limits granted for investment properties recently rose 17.3%, showing sustained borrowing appetite.
Household balance sheets are described as strong with low distress.
Commercial property development is also flourishing with CapitaLand’s S$883 million redevelopment of 1 Science Park Drive achieving 95% leasing milestone ahead of schedule.
As the market moves toward equilibrium with declining inventory, the relentless drive to purchase property, supported by GDP growth of around 3%, suggests that for Singaporeans, owning private real estate is less of a choice and more of a national sport.
