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The second half of 2024 brought renewed momentum to Singapore’s landed property market, driven by easing interest rates and a gradual recovery in market sentiment. By December 8, the sector had recorded 859 transactions, totalling $4.5 billion. This resurgence in activity is on track to outpace the year’s first half, signalling a stronger close to 2024. What does this mean for Singapore’s landed property price index for 2025?
Fluctuating Prices Reflect Market Realities
Landed home prices in 2024 have charted unevenly, reflecting the interplay of macroeconomic factors and regional demand shifts. While the URA Property Price Index for landed homes dipped 3.4% quarter-on-quarter (QoQ) in Q3, modest growth of about 1% was achieved in the year’s first nine months. This pales compared to the robust 8% growth in 2023, and 9.6% in 2022. For 2024, a PropNex report anticipates a tempered annual price increase of 1% to 2% – marking the slowest growth since 2020’s Singapore property price index of 1.2%.
Regional disparities offer further insight. In Q4, the Core Central Region (CCR) experienced a 0.4% year-on-year (YoY) decline in Singapore’s average landed property price index, following a 3.2% drop in Q3. In contrast, the Rest of Central Region (RCR) and Outside Central Region (OCR) displayed resilience, with YoY price growth of 15% and 9%, respectively. This divergence highlights how affordability and accessibility drive demand in the RCR and OCR, while the CCR faces challenges of higher price points and shifting buyer priorities.
Good Class Bungalows Segment Revives
Good Class Bungalows (GCBs) — Singapore’s most exclusive landed properties — witnessed a resurgence in 2H 2024. Sales of 12 GCBs fetched a combined $376 million, representing a 61% increase in transaction value compared to 1H 2024. Among the standout deals was a $52 million transaction for a Cluny Hill bungalow, priced at $3,434 per square foot (psf) for its expansive 15,141 square-foot land area.
Despite this uptick in sales, GCB prices have undergone notable corrections. Average transacted unit prices fell by 6.6% and 5.4% QoQ in Q3 and Q4, respectively, marking a 22% decline from the peak in Q2 2023. This correction reflects a market recalibration as sellers adjust asking prices in response to cautious buyer sentiment. Moving into 2025, pent-up demand and limited supply are expected to underpin the GCB market, potentially restoring momentum.
Prestige Landed Homes
Beyond GCBs, the broader prestige landed homes segmentçproperties priced above $10 million – saw slower activity in 2H 2024. The period recorded 37 transactions worth $514 million, a sharp 44% drop in value from the $919 million across 64 deals in 1H 2024. Notably, 73% of these transactions fell within the $10 million to $15 million range, reflecting buyers’ cautious approach amid macroeconomic uncertainty.
Leasing Market Stable
While sales softened, the leasing market for landed homes remained resilient. Between July and October, 1,999 leasing contracts were signed, valued at $21.3 million. This demand, though slightly lower than in 2H 2023, underscores the sustained appeal of high-quality rental properties in Singapore. The top leasing deal during this period was a GCB in Bishopsgate in the CCR, commanding an impressive monthly rental of $120,000.
2025 Outlook Has Opportunity Amid Caution
Looking ahead, the landed property market is poised for a promising 2025. Singapore’s GDP growth, projected at 3.5% for 2024, coupled with easing interest rates, is expected to support demand across the landed segment. The city-state’s reputation as a haven for investors remains a key draw, particularly amid global geopolitical and economic uncertainties.
In the prestige segment, limited supply and pent-up demand — especially for GCBs — will likely bolster prices and transaction volumes. Buyers seeking value may find opportunities in a market characterised by moderated price growth and recalibrated seller expectations. Singapore’s landed property price index offers an attractive combination of stability, scarcity, and appreciation potential for those eyeing long-term investments.
