After two years of rapid price appreciation that tested the affordability limits of many Singaporeans, the property market is showing clear signs of stabilisation in 2025. The Urban Redevelopment Authority's (URA) latest flash estimates indicate that private residential property prices rose by just 1.2% in Q2 2025, the smallest quarterly increase in three years.
Private home prices in Singapore have stabilised following a series of government cooling measures.
Cooling Measures Take Effect
The moderation in price growth can be attributed largely to the comprehensive cooling measures implemented by the government over the past two years. These include higher Additional Buyer's Stamp Duty (ABSD) rates for foreign buyers and investors, tighter Loan-to-Value (LTV) limits and increased supply of both public and private housing.
The most impactful measure has been the doubling of ABSD for foreign buyers to 60%, which has dramatically reduced foreign demand. Foreign purchases of private homes fell by 75% in the first half of 2025 compared to the same period in 2023, according to data from the Singapore Institute of Surveyors and Valuers (SISV).
HDB Resale Market Shows Resilience
While the private property market has cooled, the HDB resale market has shown remarkable resilience. Resale flat prices rose by 2.8% in Q2 2025, driven by sustained demand from first-time homebuyers and upgraders. The government's enhanced CPF housing grants, which provide up to S$120,000 for eligible first-time buyers, have supported affordability.
The Build-To-Order (BTO) programme continues to be the primary channel for homeownership among Singaporeans. In 2025, HDB launched approximately 23,000 BTO flats across Singapore, with a record 85% of projects in non-mature estates to ensure affordability. Application rates have normalised from the peak of 2021, with an average of 2.3 applicants per flat in the May 2025 sales exercise.
Rental Market Trends
The rental market, which experienced unprecedented growth in 2022-2023, has also moderated. Residential rents declined by 1.5% in Q2 2025, the first quarterly decline since 2020. The easing is attributed to the completion of a large pipeline of new private homes — approximately 12,000 units were completed in the first half of 2025 alone — which has increased supply and given tenants more options.
Landlords who had become accustomed to double-digit rental growth are now adjusting expectations. Average rental yields for private condominiums have stabilised at around 3.2%, down from the 3.8% peak in mid-2023 but still above the historical average of 2.9%.
Regional Comparison
Singapore's property market remains one of the most expensive in Asia, with average private home prices of approximately S$1,800 per square foot. However, when adjusted for the city-state's political stability, strong legal framework and world-class infrastructure, property values are considered justified by most analysts.
For context, Hong Kong's average private home prices stand at approximately HK$14,000 per square foot (roughly S$2,400 psf), while Kuala Lumpur's average is around RM550 per square foot (roughly S$170 psf). Singapore occupies a middle ground — expensive relative to regional peers but offering superior governance and quality of life.
Outlook for the Rest of 2025
Most analysts expect private home prices to grow by 3-5% for the full year 2025, a significant moderation from the 8-10% growth recorded in 2023 and 2024. Key factors to watch include:
- Interest rates: If the US Federal Reserve begins cutting rates in H2 2025, as many economists expect, mortgage rates in Singapore could ease, potentially reigniting demand.
- Supply pipeline: An estimated 25,000 private homes are scheduled for completion in 2025-2026, which should keep supply adequate and prices in check.
- Economic conditions: Singapore's GDP growth forecast of 2.5-3.5% for 2025 provides a supportive backdrop for the property market.
- Government policy: The government has signalled it will maintain its cautious approach and is prepared to introduce further measures if prices accelerate again.
Advice for Buyers and Sellers
For prospective homebuyers, the current market environment offers more favourable conditions than the past two years. With prices stabilising, more supply coming to market and reduced competition from foreign buyers, Singaporeans have greater negotiating power. However, affordability remains a concern, particularly for young couples and lower-income households.
For sellers, the days of automatic double-digit gains are likely over. Realistic pricing based on recent transacted prices rather than peak valuations is essential for a timely sale. Properties in prime locations with unique attributes — such as proximity to MRT stations, good schools and lifestyle amenities — continue to command premiums.
This article is for informational purposes only and does not constitute financial or real estate investment advice.