The Singapore property market experienced a notable resurgence in the fourth quarter of 2024, driven by a surge in homebuyer activity following interest rate cuts by the US Federal Reserve. According to Knight Frank’s analysis of the Urban Redevelopment Authority’s (URA) flash estimates, private residential prices rose by 2.3% quarter-on-quarter, reversing the previous quarter’s decline. This uptick was attributed to pent-up demand and increased sales at new launches, with 3,420 new sales recorded in Q4 alone.
The overall private home sales for 2024 reached 21,950 units, marking a 15.3% increase from the previous year. Knight Frank anticipates this positive momentum to continue into 2025, projecting non-landed new sales volumes between 7,000 and 9,000 units. Prices are expected to grow by 3% to 5%, supported by healthy take-up rates at new launches.
In the Core Central Region (CCR), prices grew by 2.6% quarter-on-quarter, despite muted demand due to the 60% Additional Buyer’s Stamp Duty for foreigners. The landed market remained stable, with prices increasing slightly by 0.9% for the year. Knight Frank predicts a moderate price increase of around 3% in 2025 for landed homes.
The office sector saw a slight decline in rental indices, with a 0.9% drop in Q4 2024. Occupancy levels remained healthy at 89.4%, despite global uncertainties. Retail rents grew modestly by 0.6% quarter-on-quarter, with occupancy levels improving to 93.8%. Knight Frank expects prime retail rental growth to stabilise between 1% and 3% in 2025, despite challenges from a strong Singapore Dollar and inflationary pressures.
