PRIVATE RESIDENTIAL
Private residential sales volume in 2025 hit a 4-year high
Singapore’s private residential market continued to demonstrate resilience in 2025, with continued price growth and robust sales recorded at major new launches. A combination of factors including steady upgrading demand and lower interest rates has been supportive of private housing demand.
Overall private residential sales volume fell by 9.5% qoq or 9.9% yoy to 6,699 units in Q4 2025. The decline in overall sales volume was driven by the new sales market, which fell by 10.6% qoq to 2,940 units due to fewer new launches in Q4 2025. In Q4 2025, there was a total of 6 private residential (excluding Executive Condominiums) new launches (total inventory of 2,766 units) compared to 9 new launches (total inventory of 4,146 units) in Q3 2025. In comparison, resale volume fell by 9.1% qoq to 3,529 units, while sub sale volumes fell by 2.1% qoq to 230 units in Q4 2025.
In 2025, overall private residential sales volume hit 26,492 units, or a 4-year high, rising by 20.7% yoy compared to 21,950 units transacted in 2024. Notably, new sales volume surged by 67.2% yoy to 10,815 units, or the highest level since 2021, and drove the increase in overall sales volume. Newly launched private residential projects (excluding ECs) have recorded robust performance with healthy take-up rates. Most (62.5%) of the major newly launched projects (more than 100 units) have sold more than 50% of their respective total units during their month of launch in 2025.
Prices remain resilient though moderating amid overall buyers’ caution
Private residential prices rose 0.6% qoq in Q4 2025, or the fifth straight quarter of increase. Full year 2025 growth was 3.3% yoy, moderating from 3.9% yoy growth in 2024, or the lowest pace of annual increase since the pandemic year of 2020, suggesting overall buyers’ caution.In Q4 2025, landed residential prices grew by 3.4% qoq, marking the fourth consecutive quarter of increase, or the strongest quarterly growth recorded since Q4 2023. In 2025, landed residential prices registered a 7.6% yoy growth, a huge spike compared to 0.9% yoy growth in 2024. A persistent tight supply situation coupled with enduring local demand has supported the sustained increase in landed residential prices.For the first time in 9 quarters, non-landed residential prices slipped by 0.2% qoq in Q4 2025, driven by the decline in Core Central Region (CCR) prices (-3.5% qoq). In contrast, Rest of Central Region (RCR) and Outside Central Region (OCR) prices grew by 0.7% qoq and 1.0% qoq respectively in Q4 2025. In 2025, non-landed residential prices edged up by 2.3% yoy, easing from 4.7% yoy growth in 2024. Based on the different market segments, the OCR outperformed and grew 3.2% yoy in 2025 (vs 3.7% yoy growth in 2024), compared to CCR and RCR price growth of 1.9% yoy (vs 4.5% yoy growth in 2024) and 1.6% yoy (vs 5.8% yoy growth in 2024) respectively in 2025.
Barring new cooling measures, we are cautiously optimistic that private residential prices could grow by 2.0-4.0% yoy in 2026, supported by low borrowing costs, increasing land prices and resilient buyer confidence, underpinned by still-low unemployment rates. HDB upgrader demand is still expected to persist, though overall momentum could slow. While resale HDB prices grew by 2.9% yoy in 2025, it was the slowest annual growth since 2019. Affordability concerns are likely to play a larger role in shaping upgrading decisions, particularly as private home prices continue to climb. In 2026, the market may shift towards selective buying, with buyers gravitating to market segments or projects perceived to offer the best value-for-money.
Low unsold inventory underpins developers’ confidence
Total developer unsold inventories fell to 15,007 units in 2025, or the lowest level since 2021. Low levels of unsold inventory, coupled with the decline in borrowing costs, stabilizing construction costs and robust new launch performance, is expected to support developers’ interest for land acquisition.Rents to grow further in 2026 amidst low new completions and steady demand
Private residential rents fell slightly by 0.5% qoq in Q4 2025, reversing the 1.2% qoq increase in Q3 2025. Islandwide private residential vacancy rates fell 0.9% points to 6.0% in Q4 2025.
In 2025, private residential rents rose by 1.9% yoy and have returned to growth, following a 1.9% yoy decline in 2024, supported by robust economic growth coupled with a low level of new completions. Non-landed residential rents grew 2.3% yoy in 2025, led by the CCR (2.5% yoy) and RCR (2.8%) markets, followed by the OCR market (1.3% yoy).
Private residential rents are poised to see a stronger growth of between 3.0%- 5.0% yoy in 2026, underpinned by a constrained supply pipeline and steady demand from international students. A total of 6,083 new private residential units is expected to be completed in 2026, significantly below the 10-year annual average of 10,837 units.
OFFICE
Market Strengthens on Tightened Supply
Rents and occupancy in the Central Region began to improve in 2025, as tight supply conditions amplified the impact of gradual demand improvement. After two consecutive quarters of decline, Central Region office rents returned to growth in Q4 2025, rising 0.4% qoq, as milder inflation and easing interest rates helped improve occupier confidence and facilitate leasing decisions. Rental growth was broad-based across the Central Area (+0.4% qoq) and Fringe Area (+0.8% qoq). On a full-year basis, rents increased 0.3% yoy in 2025, improving from flat growth in 2024, while vacancies tightened for a third consecutive quarter to 10.7% in Q4 2025 amidst a limited supply pipeline.
Leasing momentum in the Central Region is picking up amidst a sustained flight-to-quality and a moderating supply environment. Central Region net office demand increased to 0.2 million sf (msf) in 2025 from 0.1 msf in 2024, while net supply narrowed to 0.5 msf in 2025 from 0.7 msf in 2024. Notably, there is a wider divergence for vacancy rates for well-located, modern office stock and older office assets, with Category 1* office vacancies tightened for a third consecutive quarter to 9.3% in Q4 2025, while Category 2* stock continued to see rising vacancies to 11.9% from 11.65 in Q2 2025, underscoring persistent quality-driven leasing demand.
* According to URA, Category 1 refers to office space in buildings located in core business areas in Downtown Core and Orchard Planning Area which are relatively modern or recently refurbished, command relatively high rentals and have large floor plate size and gross floor area. Category 2 refers to the remaining office space in Singapore which are not included in “Category 1”.
Within the Central Region, the Downtown Core continued to account for the bulk of net demand at 0.4 msf in 2025, underscoring occupiers’ ongoing preference for core CBD locations. Although Downtown Core net demand moderated from 0.9 msf in 2024, this was largely attributable to a sharp decline in new supply rather than softer occupier sentiment. After the 1.2 msf of new office space from IOI Central Boulevard Towers came online in 2024, new completions fell to 0.6 msf in 2025 with Keppel South Central as the sole major addition. Downtown core office vacancy rates fell for the third consecutive quarter, falling to 9.6% in Q4 2025.
Outside the Downtown Core, leasing conditions remained softer and more selective. The Rest of Central Area (0.5 msf), Orchard (-0.02 msf), and the Outside Central Region (-0.05 msf) recorded modest net negative absorption in 2025, as large occupiers, particularly in finance and professional services, continued to anchor primary office requirements within the Downtown Core. Nevertheless, limited prime CBD supply and rising Grade A rents should continue to underpin demand for outside Downtown Core or decentralised locations, especially among occupiers seeking larger, more cost-efficient floor plates.
Looking ahead, quality-led demand and the constrained supply are expected to support further leasing momentum, with CBD Grade A offices benefiting first. The near full occupancy at Central Boulevard Towers and continued leasing activities at Shaw Tower underscores sustained occupier appetite for Grade A spaces. With only Shaw Tower (0.4 msf NLA) in 2026 and Newport Tower (0.2 msf NLA) in 2027 scheduled to complete, well below the CBD Grade A 10-year average annual net demand of 0.9 msf, market conditions are set to remain structurally tight. Supported by a continued flight-to-quality and an easing interest-rate environment, Cushman & Wakefield expects CBD Grade A rental growth to exceed the 2.4% recorded in 2025.
Central Region office price index fell 0.7% qoq in Q4 2025, marking the fifth consecutive quarterly decline, while transaction volumes slowed, with caveats easing to 61 from 85 in Q3 2025. The median unit price nonetheless rose to $2,169 psf in Q4 2025 from $2,009 psf in the previous quarter, supported by Coliwoo Holdings’ acquisition of REHAU Building for $40 million ($7,127 psf). On a full-year basis, strata office transactions remained resilient at 311 caveats in 2025, above 298 in 2024. Looking ahead, easing interest rates, mild inflation, and scarce strata supply are expected to support demand for Grade A offices in the Central Region and underpin pricing.
RETAIL
Market Recovery Builds but Stays Uneven
Central Region retail rents continued to strengthen, led by ongoing tourism recovery. Central Region retail rents rose 0.6% qoq in Q4 2025, marking the third consecutive quarter of growth, supported by rising visitor arrivals and limited vacant space in top-tier malls. On an annual basis, rents increased 1.9% yoy in 2025, accelerated from 0.5% in 2024, with the Central Area outperforming at 2.7% yoy, while the Fringe Area remained flat. Strengthening footfall across key tourist corridors such as Orchard Road and Marina Bay has helped support the retail market, as year-to-date visitor arrivals reached 89% of 2019 levels as at November 2025.Islandwide retail recovery remains uneven despite a gradual tightening in vacancy. Vacancy declined for a second consecutive quarter to 6.3% in Q4 2025, driven by the consistently strong performance of top-tier, well-anchored malls. Net retail demand moderated to 0.3 million sf (msf) in 2025, well below 1.3 msf in 2024, as economic uncertainties, high costs, and operational challenges restrained expansion plans. Tenant churn continues to weigh on leasing activity, reinforcing a two-tier retail market. Top-performing malls maintain very high occupancy rates, while older malls with weaker tenant mixes face underperformance.
Orchard Road remained structurally tight, with demand constrained more by availability than by occupier interest amidst strong tourist footfall. Net retail demand declined to -0.2 msf in 2025, reversing from +0.1 msf in 2024, as the scarcity of available prime space limited expansion and relocation activity, and negative net supply of -0.1 msf. Orchard vacancy rates edged up to 6.8% in Q4 2025 from 6.3% in Q4 2024. Notably, 2024’s vacancy rate was the lowest level since Q3 2019 (5.9%).
Leasing momentum for tier-one retail spaces in Orchard, remain firm, underpinned by continued interest from fashion and luxury brands. High-profile commitments during the year, including Maison Margiela’s 3,000 sf debut store and Tom Ford’s 4,845 sf flagship at Paragon, Van Cleef & Arpels’ expanded duplex boutique, Chanel’s standalone shoe store at ION Orchard, and Cartier’s enlarged Takashimaya outlet, reinforcing Orchard Road’s position as Singapore’s premier high-end retail destination.
The suburban retail market remained resilient in 2025, underpinned by daily-needs spending and stable residential catchments. Retail net demand in the Outside Central Region totaled 0.2 msf, down from 0.6 msf in 2024 but continued to drive the bulk of islandwide net absorption, with the moderation reflecting normalised retailer churn and more measured expansion. With new supply in 2025 limited to 0.2 msf, Outside Central Region vacancy stayed flat year-on-year at 4.3% in Q4 2025, though tightening from 5.2% in the previous quarter. Leasing was led by F&B operators, particularly well-capitalised Chinese and international brands, with Chagee and Luckin Coffee each opening at least seven outlets during the year. Outside Central Region retail vacancy remains consistently below the islandwide average, highlighting steady demand for well-located, well-curated suburban malls.
Looking ahead, prime retail rents, based on Cushman & Wakefield’s basket of islandwide tier-1 retail malls, are expected to see a moderate increase, supported by sustained demand from well-capitalised international retailers.
