Growth in prices for new private homes in Singapore slowed to 3.4 percent in 2025, down from 3.9 percent in 2024, as government measures to expand housing supply appeared to ease buyer competition in the land-constrained city-state. The figures were based on flash estimates released by the Urban Redevelopment Authority (URA) on Friday.
The moderation in prices for new private homes — excluding the hybrid public-private executive condominium segment — coincided with strong buyer absorption, supported by lower interest rates and a sharp increase in available supply. This supply stemmed from elevated land sales over the past two years, including 11,110 homes secured by developers in 2024, marking the largest development pipeline since 2013.
Developers sold up to 11,000 private homes in 2025, according to estimates from Huttons, representing the highest annual sales volume since 2021 and a 66 percent increase from 2024.
“The property market ended the year on solid footing with prices rising 3.4 percent,” said Mark Yip, CEO of Huttons Asia. He added that price pressures have eased significantly from the 10.6 percent peak in 2021 to 3.4 percent in 2025, indicating that the market has stabilised following multiple rounds of government calibration.
Any lingering urgency among buyers may also have been tempered by URA’s plan to release land for development in the first half of 2026, which would deliver the largest supply of new homes for a six-month period since 2017.
New Home Launches Jump 42 Percent
The 11,000 homes sold in 2025 followed a surge in new project launches, with developers bringing 11,500 units to market during the year — an increase of more than 42 percent from the 6,647 units launched in 2024, according to URA data. In 2023, just 6,421 units were launched.
The expanding supply reflects government efforts to increase land availability for private housing after average home prices surged 13.3 percent in 2021 and a further 8.6 percent in 2022, raising affordability concerns, URA figures showed.
The 3.4 percent rise in private home prices in 2025 represents the slowest annual increase since the pandemic-affected year of 2020. This followed growth of 6.8 percent in 2023, which then cooled to 3.9 percent in 2024.
During the fourth quarter of 2025, average new private home prices rose 0.7 percent quarter on quarter, compared with a 2.3 percent increase during the same period a year earlier, when expectations of lower interest rates had sparked stronger buying activity.
The strongest quarterly price growth of 2025 occurred in the July to September period, when the URA price index climbed 0.9 percent from the previous quarter.
Further Cooling Expected in 2026
Looking ahead, analysts expect price growth to moderate further in 2026, as developers are projected to launch 11,317 new units, according to Huttons’ estimates — broadly in line with supply levels in 2025.
About 59 percent of planned condominium launches this year are located in Singapore’s suburban Outside Central Region (OCR), compared with 4,040 units in these areas in 2025. This shift is expected to tilt sales toward more affordable segments of the market.
“Assuming no unexpected developments, developers’ sales are forecast at 8,000 to 10,000 units, while property prices are expected to rise by 2 to 5 percent in 2026,” Yip said.
URA’s land sales programme for the first half of 2026 includes confirmed tenders for sites that could yield up to 3,940 private homes, excluding executive condominiums. This compares with 4,659 units in the first half of 2025 and 3,735 units in the second half of last year.
