Property outlook 2025: Are home prices stabilising?
A cautious approach is advisable for prospective buyers, particularly considering current elevated price levels and interest rates
THE Singapore property market begins 2025 with renewed confidence, following a period of reduced transaction volume. While prices continue their upward trend, affordability is nearing its peak, which requires commensurate growth in household incomes to sustain this momentum.
Given the government’s ongoing cooling measures, the DBS Research team anticipates a moderation in property price growth in 2025. The projection for the Singapore property price index (PPI) is a 1 to 2 per cent increase, aligning with inflation expectations and representing a significant decrease from the 6.8 and 3.9 per cent increases observed in 2023 and 2024, respectively.
Stabilising home prices
Singapore’s positive economic outlook and low unemployment rate underpin the property market’s fundamentals, although potential escalation of global trade tensions poses a downside risk. Buyer sentiment is heavily influenced by economic conditions and employment levels. Our DBS economist forecasts robust GDP growth of 2.8 per cent year-on-year for Singapore in 2025, exceeding the midpoint of the Ministry of Trade and Industry’s forecast range of 1 to 3 per cent.
Share with us your feedback on BT's products and services
