Singapore’s private home prices rose for a fourth consecutive quarter, signaling sustained demand for new units and suggesting the property boom in the city-state is likely to continue, according to final figures released by the Urban Redevelopment Authority (URA) on Friday.
The URA’s private residential price index climbed 0.9% in the third quarter compared with the previous three months, slightly below an earlier estimate of 1.2%. A separate index tracking private home rents increased 1.2%.
The gains coincide with a surge in sales expected to extend into the year’s final quarter. The recovery, which began in late 2024, has surprised some observers and driven up valuations in one of the world’s priciest property markets.
Demand for new developments has been supported by factors such as generational wealth transfers, declining local lending rates, and interest from affluent foreign buyers. Bloomberg calculations based on broker figures indicate that new home sales in October alone are set to surpass 1,400 units.
However, the rising prices present challenges for regulators, who have historically acted to temper speculative activity. Authorities have implemented multiple curbs, most recently increasing the duty on property owners who resell their units within a few years.
Price movements in new private homes also influence the second-hand market for government-built housing, where the majority of Singapore residents live. Bloomberg Intelligence projects private home prices to rise by less than 4% in 2025, aligning with a 3.9% increase in 2024. Citigroup Inc. noted that “policy risk is limited” as long as average quarterly growth remains around 1%.
