Possible Reasons Behind The Slower Price Growth
There was a significant decline in sales transactions in Q2 2025, especially the primary market. This is due to a sharp reduction in the number of new launched units, dipping from 3,139 units (excluding EC) in Q1 2025 to an anticipated total of less than 2,000 units in Q2 2025 (i.e. 1,364 units were launched in April and May 2025). This reduction may have impacted the overall price growth since new sales constituted a smaller proportion of total transactions, and new homes tend to fetch higher prices.
Based on URA realis caveat data, the proportion of new sale transactions (non-landed and landed excluding EC) dipped from 46.1 per cent in Q1 2025 to 26.5 per cent in Q2 2025. Conversely, the proportion of resale home transactions, which typically fetch lower prices than new homes, rose from 49.8 per cent to 69.1 per cent.
Moreover, consumer sentiment was generally more cautious due to the macroeconomic uncertainties, stemming from the ongoing trade war. The May elections and local buyers being overseas during the June holidays may have led to fewer marketing activities and subsequently translated to less sales transactions.