(Jan 23): Singapore home prices rose 3.3% in 2025, slightly less than initially estimated, as the market showed signs of cooling towards the end of the year.
The increase compared with a preliminary estimate of 3.4%. Residential prices grew 0.6% in the fourth quarter, down from an initial 0.7% print, according to final figures released by the Urban Redevelopment Authority on Friday.
Private rents fell 0.5% in the quarter, the first decline in more than a year. Rents rose 1.9% for the year.
Singapore’s real estate market has defied bearish predictions despite multiple rounds of curbs introduced by the government to prevent speculation. Prices have kept growing, albeit at a slower pace, thanks to falling interest rates and strong demand for new projects by locals and wealthy immigrants. That’s likely to weigh on policymakers ahead of the annual budget announcement on Feb 12.
Authorities have also signalled concern about elevated rental costs, which remain near a record high. They recently announced the extension of an occupancy cap relaxation for two years until end-2028, citing a need to meet “sustained rental demand”. The measure allows more people to stay in large public and private housing units.
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While the bulk of locals live in subsidised state housing, price movements in that segment are closely intertwined with those in the private market, which means spikes can compound affordability concerns. Prices for second-hand public housing rose 2.9% last year, the slowest pace since 2019, separate figures showed on Friday.
Most analysts and realtors expect another positive year for private home prices, projecting a 3% increase, according to the median of 13 estimates compiled by Bloomberg. Last year’s gain was the slowest since 2020.
Citigroup Inc analyst Brandon Lee expects private home prices to rise 3% to 4% in 2026 on soft mortgage rates and a launch pipeline dominated by mass-market projects, according to a note published earlier this month.
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Singapore’s home sales slowed markedly in November and December as fewer projects were launched ahead of the holiday season. Still, developers sold 10,815 private homes in 2025, up 67% from a year earlier and the most since 2021.
Uploaded by Tham Yek Lee
