S'pore property trends to watch in 2025

While no big disruptions are expected, there will be nuanced influences at play

- Christine Sun

The coming year promises to be a vibrant and dynamic period for Singapore, primarily because it will coincide with the general election. While the real estate sector may not experience significant disruptions during an election year, there will still be nuanced influences at play.

Concurrently, global economies will be facing a period of heightened uncertainty, particularly following the recent conclusion of the presidential election in the US. Any resultant change in US policies could have far-reaching implications for global economies, potentially triggering a domino effect on real estate worldwide.

For instance, the economic framework proposed by the Trump administration, which emphasizes tax reductions and broad-based tariffs, is anticipated to stimulate the US economy. Moreover, stricter immigration controls are likely to improve domestic employment, re-accelerate wage growth, and spur spending. These developments may elevate inflationary risks and constrain the Federal Reserve's capacity to pursue more aggressive rate cuts. Furthermore, potential trade wars may impact supply chains and adversely affect the manufacturing and construction sectors.

As we navigate these complexities within the housing market in the run-up to these significant events, several key trends may emerge for the Singapore property market in 2025.

PRIVATE HOME PRICES PROJECTED TO GROW AT A MODERATE PACE

The private residential market has entered a phase of price stability.

In 2024, private home prices are expected to grow at a modest rate of 2 per cent to 2.5 per cent, which is considerably slower than the 6.8 per cent growth experienced in 2023 and 8.6 per cent in 2022. Further, home buying activity has decreased due to property cooling measures, housing supply shortages, and elevated interest rates.