Although the property market buzzed with activity for most of 2025, the year ended with a distinct sigh of relief as the final quarter saw private housing momentum cool considerably. Specifically, total private home transactions tumbled by 27.1 percent quarter-on-quarter, settling at 5,399 units compared to the busier third quarter.
It seems buyers unexpectedly took a holiday break, as new sale transactions declined 12.6 percent to 2,856 units, while developer sales fell 10.6 percent to 2,940 units. Even the secondary market slowed noticeably, with resale transactions dropping 9 percent to 3,529 units.
Despite this quiet finish, 2025 was a blockbuster year overall, mainly crushing previous figures. Developer sales hit a notable four-year high of 10,815 units, marking a massive 67 percent jump from 2024, while resale transactions climbed 4 percent year-on-year to reach 14,622 units. Highlighting specific segment growth, executive condominium sales increased by about 33 percent for the year.
While volume slowed later, prices remained resilient, increasing 3.3 percent for the full year, though non-landed prices slipped 0.2 percent in the fourth quarter. Conversely, the landed property index saw an increase of 3.5 percent quarter-on-quarter, supported by condo upgrader demand.
On the rental front, tenants finally caught a rare break after months of hiking costs. The private residential rental index declined 0.5 percent in the fourth quarter, representing the first fall since mid-2024, although full-year rents still managed a 1.9 percent increase. Some homeowners who recently refinanced from HDB to bank loans have been able to take advantage of the lower interest rates hovering around 2.25%, increasing their purchasing power in the market.
Supply dynamics also shifted noticeably, as the inventory of unsold uncompleted units reduced by 12.7 percent to 14,859 units. Moreover, vacancy rates improved to a healthier 6.0 percent as the stock of occupied units increased by over 5,000 units, showing that homes are being filled.
Looking forward, the market outlook remains cautiously optimistic despite the recent dip in speed. Experts project new home sales could reach between 9,000 and 10,000 units in 2026, largely supported by low interest rates and improved sentiment.
With developers launching fewer homes in the final quarter, where only 2,632 units debuted compared to over 4,000 previously, the market is digesting existing stock efficiently. Sub-sale transactions also dipped to just 230 units.
Ultimately, while the frantic pace has waned recently, the fundamentals suggest a stable path ahead rather than a crash, ensuring the market remains active.
