URA Real Estate Stats - Q3 2025

Residential

In comparison to Q2 2025, the number of new sales surged by a substantial 171.3% from 1,212 units to 3,288 in Q3 2025 notwithstanding the Lunar Seventh Month where a third of the quarter (mostly during the month of September) was relatively quiet. Developers launched projects prior to the Hungry Ghost Festival during the Lunar Seventh Month, and homebuyers were drawn from the sidelines into the showflats, as several projects chalked up brisk sales. Developers launched 4,191 units in Q3, some 2.76 times the 1,520 units launched in Q2 2025. All sales (including subsale and resale) increased 44.4% from 5,128 units in Q2 2025 to 7,404 units in Q3 2025. As a result, the URA All Residential Price Index increased by a moderate 0.9% q-o-q and 2.7% in the first nine months of the year, based on data announced by URA today.

Among the three market segments, the non-landed home prices in the Core Central Region (CCR) recorded the highest quarterly price growth of 1.7% in Q3 2025. However, this increase was less than the 2.4% gain recorded when the flash estimates were announced earlier in October. The price expansion was backed by the launches of UPPERHOUSE at Orchard Boulevard, The Robertson Opus and River Green. Local homebuyers supported activity in the prime home market segment, largely for their own occupation and for lease to foreign professionals working in Singapore, as the Additional Buyer’s Stamp Duty (ABSD) for foreign buyers continues to hamstring demand from non-Singapore residents. New citizens and permanent residents that favour high-rise living have also been acquiring homes in a stable Singapore, against the backdrop of a destabilising global environment. In 2024, there were 22,766 new citizens and 35,264 new permanent residents based on the latest population data available from the Department of Statistics. With an ABSD rate of 60% for foreign buyers, there is incentive for foreigners to put down more permanent roots in a stable Singapore in light of the global political and economic tensions.

In the landed market, landed home prices increased 1.4% q-o-q in Q3 2025, after rising 2.2% q-o-q in Q2 2025. Although landed homes continue to be sought after due to its scarcity and status at the top of the Singapore housing ladder, it was observed that more landed homebuyers were willing to explore and consider older landed homes or less central locations, or both. Nevertheless, most stayed away from severely run-down properties that required a full redevelopment.

In the nine months from January to September 2025, a total of 7,875 private residential units have been sold in the primary market, already falling within the 7,000 to 9,000 range forecasted by Knight Frank earlier this year. New home sales should fall at the higher end of the original forecast range, likely to surpass the 9,000-mark from sales at new launches in October and early November, before the start of the seasonal holiday period. Already the take-up of units at new launches in October point towards sustained homebuyer appetite. Singapore’s residential market remains resilient despite global uncertainty, supported by low unemployment and healthy household balance sheets. Most residents remain employed, and strong domestic savings provide households with financial flexibility, sustaining demand even as global economic and geopolitical pressures persist. While most households are not under immediate financial pressure, some are motivated to act sooner rather than later anticipating further price growth. In the months ahead, the key factors to watch are the unfolding global macroeconomic headwinds, interest rates, and the unemployment levels. With private home price movement in 2025 at 2.7% between January to September, the overall growth for the year is expected to fall in the middle of Knight Frank’s 3% to 5% projected range.

Although the recent launches in the CCR injected the prime areas with renewed activity, prices in the CCR have not risen as briskly when compared to the RCR and OCR. In the past five years (Q3 2020 to Q3 2025), the non-landed private home price index for the CCR grew by a cumulative 26%, against the gains of 47% and 46% made in the Rest of Central Region (RCR) and Outside Central Region (OCR) respectively. The price growth in the CCR has essentially lagged behind the entire private home market which had risen by some 40% since the pandemic. With a narrowing price gap between the prime locations versus the rest of the island, value opportunities could emerge for the observant homebuyer. And this includes options for capital preservation and legacy transfer, especially when a substantial proportion of the completed freehold inventory is in the CCR.

The URA rental index for private homes grew by a moderate 1.2% q-o-q in Q3 2025, with a combined 2.4% growth in the nine months of 2025. With 5,978 new homes completed from January to September 2025, and about 1,144 units expected to complete in the remaining quarter of the year, a tightening in rental inventory is expected to support and provide for some slight rent growth for the rest of 2025 and into 2026. The overall rental growth remains on track to range between the 1% and 3% forecasted. Despite the low vacancy rates, landlords are growing wary and defensive. Job security is becoming less uncertain for employees in industries that are increasingly affected by the rapid changes in the world. Higher cost-of-living concerns are also threatening to reduce Singapore’s appeal to foreign professionals.

Office

In the third quarter of 2025, the office rental index continued to decline, falling by 0.1% q-o-q and 1.0% y-o-y. The marginal decrease in the office rental index in Q3 2025 reflects a broader trend of rent stabilisation, as market activity in the office sector remained cautious. Many occupiers preferred to stay put and renew in current locations instead of expanding or relocating, especially if capital outlay were to be incurred amid the wider uncertainty. As such, quality buildings will likely continue to benefit from healthy occupancies, but older ageing buildings that are approaching obsolescence will have to deal with vacancies and rents that are under pressure sooner-rather-than-later.

Occupancy levels islandwide in the third quarter of 2025 was 88.8%, up 0.2 percentage points (pp) from the 88.6% recorded in Q2 2025. With occupancy levels remaining tight with less available space, there was limited movement from office occupiers.  Nevertheless, despite most quality buildings being near full, landlords remained focused on tenant retention. Still, a quiet flight-to-quality trend continues as occupiers right-size or modestly expand when leases expire, capitalising on stable rents to move into newer buildings offering enhanced tenant experiences. Flexible coworking spaces also attract creative and lifestyle sectors, while older, less connected properties face growing obsolescence.

Despite global headwinds, Singapore remains a safe, attractive hub for corporates when contrasted against other geographies facing heightened business uncertainty. Though sentiment is expected to stay cautious, prime office rents should hold steady with marginal growth into early 2026 barring a sudden turn of events for the worst in the global economy.

Retail

In Q3 2025, rents of retail space grew by 0.9% q-o-q and 1.9% y-o-y, signifying continued demand from operators despite the challenging environment. The rental growth in the retail sector can be attributed to a two-sided dynamic. Some retailers have exited the market amid an operating environment characterised by escalating manpower, material and occupational costs. Nonetheless, vacated units have been and continue to be swiftly absorbed. This inflow of well-capitalised occupiers led to a slight increase in occupancy as well as underpinned the upward pressure on rents despite broader sector challenges. With demand supported by quick turnover, occupancy levels increased, rising 0.2 percentage points from 92.9% in Q2 2025 to 93.1% in Q3 2025.

Luxury brands and specialised services such as beauty, wellness, and enrichment continue to show resilience, driven by demand for in-person and curated experiences. While local F&B operators exited, vacated spaces were swiftly taken up by well-capitalised international chains, heightening competition and raising standards across the market.

In addition to rising costs and manpower shortages squeezing margins, cross-border shopping and the strong Singapore dollar have also added pressure, as some residents were inclined to spend more across the Causeway. In summary, while the domestic retail and F&B scene is rife with cost difficulties alongside visceral operating challenges, the sector nonetheless continues to grow. And this underscores the CRITICAL need for retailers and landlords to differentiate through unique experiences, strong brand identity, and value-driven offerings. The middle ground consisting of mass, undifferentiated retail, remains the hardest to sustain.

Landlords are increasingly mindful of tenant challenges, balancing rental returns with trade mix, community character, and long-term viability. With a view of all these factors held in tension, retail rental growth of Knight Frank’s prime retail spaces is expected to end the year within the 1% to 3% range projected earlier at the start of the year.