Private home prices in Singapore saw their slowest growth in four years, according to the Urban Redevelopment Authority (URA). The overall price index for private residential properties increased by 2.3% from the third quarter (Q3) to the fourth quarter (Q4) of 2024, resulting in a full-year growth of 3.9%. This marks a significant decline from the 6.8% increase in 2023 and even higher rates in previous years.
The volume of private home sales, excluding executive condominiums (ECs), rose sharply by 38.4% from 5,372 units in Q3 to 7,433 units in Q4 2024. For the entire year, 21,950 private homes were sold, a 15.3% increase compared to 2023. This surge was largely driven by new project launches, with new home sales jumping by 194.8% in Q4 2024, reaching the highest quarterly sales since Q3 2021.
Conversely, the resale market faced challenges, with volumes dropping by 4.1% from Q3 to Q4 2024 due to heightened competition from new projects. Meanwhile, rental prices remained stable in the final quarter, with a slight increase for non-landed properties. Overall, rental prices dipped by 1.9% in 2024, reversing the 8.7% rise seen in 2023.
Looking ahead, rents are expected to recover in 2025, with a projected increase of 2% to 4%, driven by improving economic conditions and reduced housing supply. Christine Sun, Chief Researcher and Strategist at OrangeTee, anticipates private home prices to rise by 4% to 7% in 2025, spurred by more project launches and tighter home supply. Sales are projected to remain steady, with 18,000 to 22,000 units expected to be sold in 2025.
