[SINGAPORE] The private residential property market in Singapore experienced a notable slowdown in May 2025, with developers transacting just 312 private housing units—a steep drop from April’s 663 units. This decline followed a month without any new project launches, as developers exercised caution amid softer market sentiment and the distractions of the general election period.
Yet despite the month-on-month fall, the latest figures—excluding executive condominiums (ECs)—represented a 39.9% year-on-year increase from the 223 units sold in May 2024, signaling that underlying demand remains relatively resilient compared to a year ago. This data, released by the Urban Redevelopment Authority (URA) on Monday, June 16, offers a nuanced picture of a market navigating political uncertainty and evolving economic conditions.
Muted Activity in the Absence of Launches
May’s performance represents the weakest monthly showing for new private home sales in 2025 to date. Several analysts attribute this sluggishness primarily to the absence of fresh residential launches, which typically drive buying activity. For the first time this year, no new private developments were introduced to the market—an anomaly in a sector where fresh inventory plays a crucial role in stimulating transactions.
According to PropNex’s Head of Research and Content, Wong Siew Ying, the market’s inertia was expected: “The decline in new home sales in May is not unexpected, as fresh project launches tend to drive transactions each month.” This underscores the dependency of monthly sales volumes on developers releasing new and appealing inventory for buyers, especially in key districts with proven demand.
OrangeTee & Tie Chief Executive Justin Quek further noted that the general election may have played a part in delaying investment decisions, with many potential buyers preferring to sit on the sidelines amid the political cycle.
Developers and Buyers in a Wait-and-See Mode
Industry experts say current market sentiment is shaped by a shared hesitancy between developers and buyers. Developers are cautious about launching projects in an environment marked by economic headwinds and policy uncertainty. On the other hand, buyers are waiting for more clarity on pricing trends, hoping for more competitive entry points or the debut of high-potential developments.
Nicholas Mak, Chief Research Officer at real estate portal Mogul.sg, commented: “Developers are waiting for a more favorable market condition to launch their residential projects, while homebuyers are waiting for choice project launches and lower prices.” This mutual pause highlights how macroeconomic conditions—such as inflation rates, employment trends, and interest rate movements—continue to shape strategic decisions on both sides of the table.
Supply Tightness and Executive Condominium Sales
Including ECs, a public-private hybrid housing type, total new home sales for May rose slightly to 336 units. Yet only 20 units were officially launched during the month. This imbalance contrasts sharply with May 2024, when 238 new units were released and 263 sold. April this year had seen a much more active market, with 1,344 units launched and 759 sold.
The stark drop in new launches suggests that developers are biding their time, possibly refining pricing strategies or timing releases for periods with stronger buyer activity. Furthermore, limited launches have placed a cap on transaction volumes, particularly for projects that cater to mass-market segments.
Price Performance Remains Steady
Despite the quieter transactional landscape, residential prices have remained relatively firm. In the first quarter of 2025, private home prices climbed by 0.8%, building on a 2.3% increase in Q4 2024. Analysts are projecting a full-year price appreciation of around 3% to 4%. These moderate gains reflect cautious optimism, underpinned by demand for well-located and competitively priced units.
One critical factor supporting price stability is the contraction in new home supply. Just 5,348 units are slated for completion in 2025—a sharp 41.3% decrease from the previous year. This supply tightening, especially in the Core Central Region (CCR) and Rest of Central Region (RCR), lends support to prices as demand continues to outstrip availability in select market segments.
Year-to-Date Sales Show Strong Momentum
Despite May’s subdued figures, the broader market is still in healthier shape compared to last year. From January to May 2025, developers sold approximately 4,350 private homes, more than doubling the 1,688 units transacted during the same five-month period in 2024. This suggests that while month-to-month numbers may fluctuate due to launch timing or macro events, cumulative demand remains robust.
This momentum indicates that buyers are still entering the market with a degree of confidence—especially for projects perceived to offer long-term value. Some observers believe the pent-up demand from last year, when sales lagged amid rising borrowing costs and cooling measures, is now gradually being released into the market.
Investor Insights and Opportunities
From an investor standpoint, the current environment presents a mixed bag of caution and opportunity. Slower sales and the scarcity of new launches might limit short-term volume play, but they also reinforce the pricing power of developers with unsold inventory in well-performing locations.
City-fringe and suburban areas, where price points fall under the S$2 million mark, continue to draw interest from a broad base of buyers. These locations often strike a balance between accessibility and affordability, making them attractive for both end-users and investors looking for stable rental yields.
Meanwhile, buyers with a longer investment horizon may benefit from entering the market during these transitional periods—particularly ahead of new launch waves anticipated later this year. Projects located near transport hubs, within sought-after school zones, or featuring strong lifestyle amenities are expected to lead demand once sentiment picks up.
Looking Ahead
Faber Residence is one of the chance for value buy. The land bid is fairly reasonable which give leeway of launching price. There are few factors that caused the supply and demand for the seller to exit.
While May 2025 may not have been a banner month for new home sales, the underlying data points to a market that is adjusting rather than retreating. Developers remain strategic in their deployment of new inventory, and homebuyers are becoming increasingly value-conscious, seeking compelling offerings rather than rushing into purchases.
With land costs still high and interest rates potentially peaking, developers are unlikely to engage in widespread price cuts, thereby helping maintain a level of price discipline across the market. This sets the stage for a gradual, steady property landscape where quality offerings will stand out.
Investors keeping an eye on fundamentals such as rental demand, urban transformation plans, and infrastructural improvements may find that opportunities in the current cycle favor the well-researched and well-prepared.
