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SINGAPORE: Private home prices rose by 3.4 per cent in 2025, the smallest increase in a year since 2020, according to a flash estimate from the Urban Redevelopment Authority (URA) released on Friday (Jan 2).
The overall price increase in 2024 was 3.9 per cent.
Huttons Asia CEO Mark Yip noted that price pressures had alleviated since 2021, when prices grew by 10.6 per cent.
These are "clear signs that the market has stabilised after several rounds of calibration from the government", he said.
Prices also rose at a slower pace in the fourth quarter of 2025, increasing by 0.7 per cent, compared with 0.9 per cent in the previous quarter.
Non-landed private residential property prices slipped 0.1 per cent, reversing a 0.8 per cent increase in the third quarter.
“Prices of non-landed private residential properties in the Core Central Region decreased by 3.2 per cent, compared to the 1.7 per cent increase in the previous quarter,” said URA in a news release.
For properties in the Rest of Central Region, prices climbed by 0.7 per cent, up from 0.3 per cent in Q3.
Prices in the Outside Central Region saw the largest increase, rising by 1 per cent, as compared to the 0.8 per cent increase in the previous quarter.
“For landed properties, prices increased by 3.5 per cent, compared to the 1.4 per cent increase in the previous quarter,” said URA.
The flash estimates are compiled based on transaction prices submitted for stamp duty payment and data on units sold by developers up to mid-December.
The statistics will be updated on Jan 23 when URA releases its full set of real estate statistics for 2025's fourth quarter.
SUPPLY FOR FIRST HALF OF 2026
Looking ahead, URA said that 4,575 private residential units will be tendered out via the confirmed list for the first half of the 2026 Government Land Sales (GLS) programme.
This is 50 per cent above the average confirmed list supply per GLS programme over the past decade, said URA.
The units are part of eight private residential sites.
An additional 4,610 units will be made available via the programme’s reserve list.
“Together, the total GLS supply of nearly 9,200 units in the first half of 2026 will be comparable to that in the second half of 2025,” said URA.
“Given the uncertain macroeconomic outlook, households should continue to exercise prudence when purchasing properties and taking on mortgage loans,” it added.
OUTLOOK
Private home prices are expected to increase moderately in 2026, said Ms Christine Sun, chief researcher and strategist of Realion (OrangeTee & ETC) Group.
"The number of new project launches is expected to be lower than in 2025, which may lead to fewer new sale transactions. Further, more than half of the new launches will be in the suburban area, where prices tend to be lower than in other market segments," she explained.
Ms Sun also noted that more resale homes would be completed in 2026, which would invigorate and sustain buyer interest in the secondary market, possibly putting some downward pressure on private home prices.
"Overall prices are projected to increase by 2.5 to 4.5 per cent for the whole of 2026, which is on par with the 3.4 per cent growth for 2025 and 3.9 per cent in 2024," she said.
Mr Yip of Huttons said units in the Outside Central Region would make up around 59 per cent of units launched for sale in 2026.
"In view of the high proportion of launches in the Outside Central Region, there may be more transactions in the S$1.5 million (US$1.2 million) to S$2 million range in 2026," he said.
