As a real estate agent in Singapore, it's crucial to stay informed about the latest market trends to provide clients with accurate and insightful advice. According to CBRE's Singapore Market Outlook 2025, the real estate landscape presents a mix of challenges and opportunities.
On one hand, easing inflation and interest rates are expected to offer some relief to the property market as we progress through 2025. However, the anticipated slowdown in economic growth, with the Ministry of Trade and Industry projecting GDP growth between 1% and 3% for 2025—down from 4% in 2024—could impact property demand.
Despite these mixed signals, there are promising developments:
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Residential Sector: Developer sales surged in the last quarter, with 3,511 units sold—a threefold increase from the first nine months of 2024. Prices also saw a 2.3% quarter-on-quarter rise, the highest in 2024. With an estimated 12,000 to 14,000 new units expected to launch this year, CBRE projects that 7,000 to 8,000 new homes could be sold in 2025, supporting a price growth of 3% to 6%.
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Office Market: While leasing volumes slowed in 2024 due to global uncertainties and hybrid work trends, the limited pipeline of new Core CBD (Grade A) offices over the next three years is expected to keep vacancy rates low. CBRE forecasts a 2% rental growth for Core CBD (Grade A) offices in 2025.
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Retail Sector: The limited supply of new retail space, coupled with positive leasing sentiment driven by inbound tourism and a robust events pipeline, is projected to result in a 2% to 3% growth in average retail prime rents in 2025, returning to pre-pandemic levels.
In summary, while the Singapore real estate market faces uncertainties, opportunities remain for those who can navigate the emerging trends:
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Easing inflation and interest rates may provide market relief.
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Economic growth is projected to slow, potentially affecting property demand.
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The residential sector shows momentum with increased sales and new launches.
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Limited office and retail space supply could support rental growth.
Staying updated on these developments is essential for making informed decisions. Feel free to reach out to discuss how these trends might impact your property interests and to explore opportunities in this evolving market.
Source: Real estate market facing mixed signals going into 2025, but opportunities remain: CBRE