Flash Estimate Private Residential Sales Q3 2025
Price Trend
The private residential market demonstrated remarkable resilience, with prices growing at a slightly faster pace and sales volume rebounding strongly in the third quarter of this year. According to the Urban Redevelopment Authority (URA), the property price index (PPI) rose by 1.2 per cent in the third quarter of 2025, gaining pace from 1 per cent in Q2 and 0.8 per cent in Q1.
Year-to-date, prices grew by 3.1 per cent, which is higher than the 1.6 per cent growth registered over the same timeframe in 2024, but slower than the 3.9 per cent in the corresponding period in 2023.
Prices by Segment
Prices grew at a faster pace for non-landed homes, rising from 0.7 per cent in Q2 2025 to 1.1 per cent in Q3 2025. Non-landed homes in the prime Core Central Region (CCR) rose further by 2.4 per cent quarter-on-quarter (q-o-q), but at a slower pace compared to the 3 per cent in the preceding quarter, while non-landed homes in the suburban Outside of Central Region (OCR) rose by 1 per cent, marginally lower than the 1.1 per cent in Q2. Prices in the city fringe or Rest of Central Region (RCR) increased by 0.4 per cent in Q3, reversing the 1.1 per cent drop in Q2.
The price growth observed in the CCR may be attributed to the significant increase in new sale transactions, from 44 units in Q2 2025 to 896 units in Q3 2025. New sale transactions in OCR (excluding EC), similarly escalated from 263 units to 1,279 units over the same period, while RCR registered 1,067 units in Q3, up from 883 units in Q2.
The slightly faster q-o-q overall price increase in Q3 2025 may also be due to the 24.1 per cent jump in higher-priced transactions (landed and non-landed), where 1,340 units changed hands for more than S$3 million in Q3 2025, up from 1,080 units in Q2 2025.
Outlook
Demand for new homes is expected to hold firm in the final quarter of this year. Several new developments are scheduled for launch after the seventh lunar month and before the year-end holidays when many people will be travelling then.
Developers are also expected to expedite their launches to ride on the current wave of positive sales momentum. Some of the high-profile projects include Penrith, Zyon Grand, and The Sen. With many project launches, we expect overall prices to remain firm in Q4 2025.
Moreover, housing demand generally rises when interest rates decline. The Federal Reserve lowered the interest rates by a quarter point in September, and forecasts suggest that there could be another one or two more rate cuts for the remainder of 2025. With interest rates falling further, property investment will become even more attractive as mortgage costs continue to improve.
We anticipate that prices for the overall market may rise by 3.5 to 5 per cent for the whole of 2025.