Property boom fizzles? Home prices barely rise 0.6% in Q1 after previous surge

SINGAPORE: According to the Urban Redevelopment Authority report featured in a Singapore Business Review article, prices of private residential property escalated fairly by 0.6% in the first three months of the current year. This is a significant drop from the 2.3% upsurge in the preceding quarter. The report likewise indicated that the price growth for non-landed properties slackened across all sectors while overall sale transaction volume plummeted by 15% quarter-on-quarter. To stabilise the market and address the demand for housing, the government augmented the private housing supply in the Government Land Sales (GLS) Programme for 1H2025 to 8,505 units. This consists of 5,030 units (980 Executive Condominiums) accessible through the Confirmed List, approximately 60% higher than the standard supply from 2021 to 2023. A steady supply of private housing will be released attuned to financial and market conditions, the government stated. Buyers are advised to exercise caution when purchasing properties or accepting mortgage credits. In a statement to Real Estate Asia, Ismail Gafoor, CEO of PropNex Realty, said that revitalised trust emerged in the private residential market at the end of 2024, as reflected by a series of fresh launches that have achieved thriving sales. Gafoor added that the restraint in interest rates, the city-state’s constructive economic stance, the tight labour market, and the unveiling of projects in very attractive sites have all paved the way for the property market to prosper and boost customers’ sentiment. See also HDB: Q3 resale prices up 1.2%, private property up 0.5%Market specialists from Huttons, Knight Frank, and Cushman & Wakefield reflected the same sentiment, saying that while price growth has slackened, the market has remained robust, with vigorous sales in new inaugurations and continued buyer awareness. Similarly, Knight Frank emphasised that the Rest of Central Region (RCR) directed price surges, while the Core Central Region (CCR) continues to be confronted with pressures due to overseas consumer boundaries. Would this mean housing in Singapore is now affordable? In a Channel News Asia YouTube video entitled “Has Housing Become Unaffordable: Singapore’s Public Housing Revealed,” a commenter said that the real issue is that wages and salaries of people have not kept up with price inflation, most especially with housing prices. According to this netizen, median income has remained within the range of $5,000, and in his understanding, 50% of the population is earning a lot less than that amount. He believes that there is a sizeable number of people in Singapore earning roughly $2,000 plus salary, which is very similar to a middle manager’s income three decades ago. In a nutshell, what this commenter is saying is that whether or not Singapore’s housing prices remain steady will be of little help to ordinary Singaporeans if their salaries and wages remain stagnant while prices of commodities and residential properties keep shifting.