Why Singapore private home prices slowed in Q1

The increased market share of suburban homes is one factor.

In a recent report, OrangeTee said private home prices in Singapore rose for a second consecutive quarter, albeit at a slower pace compared to the first quarter.

The URA property price index (PPI) released by the Urban Redevelopment Authority (URA) posted smaller gains of 0.8 per cent in the first quarter of 2025, easing from the 2.3 per cent growth in Q4 2024.

Here’s more from OrangeTee:

The slower overall price growth may be attributed to the smaller price increments for non-landed properties – or condos and apartments – which climbed by 1 per cent in the first quarter, down from the 3 per cent gain in the fourth quarter of 2024. However, landed prices rebounded by 0.4 per cent, reversing from the 0.1 per cent drop in the previous quarter.

The slower price growth may also be attributed to an increased market share of suburban homes, which are typically sold at lower prices compared to other properties in city fringe and prime areas. Based on URA real estate statistics, the proportion of private home sales in OCR (landed and non-landed, excluding EC) rose from 47.3 per cent in Q4 2024 to 58.2 per cent in Q1 2025.

Conversely, the proportion of private homes in RCR dipped from 42.1 per cent to 29.3 per cent over the same period. For CCR, the proportion increased slightly from 10.6 per cent to 12.4 per cent.  

Among the submarkets, a slower growth can be observed across the board. Prices of non-landed properties rose by 0.3 per cent in the suburbs or Outside Central Region (OCR) in Q1 2025, following a 3.3 per cent increase in Q4 2024. Prices in the prime areas or the Core Central Region (CCR) rose by 0.8 per cent, slowing down from 2.6 per cent gains in the preceding quarter. In the city fringe or the Rest of Central Region (RCR), prices climbed by 1.7 per cent, down from the 3 per cent growth in Q4 2024.