Singapore Property Sales Hit 13-Year High

Singapore’s private residential property market experienced an extraordinary surge in February 2025, achieving a 13-year high for the month with 1,575 new home sales, excluding executive condominiums (ECs). This figure reflects a 45.4% increase from January’s 1,083 units and a staggering tenfold rise from the 153 units sold in February 2024. Including ECs, total sales reached 1,604 units, up 45.3% from January’s 1,104. The first two months of 2025 alone recorded 2,658 transactions, nearly matching the 2,714 units sold across the first eight months of 2024. This robust performance signals a vibrant recovery, driven by strategic suburban launches, declining mortgage rates, and a wave of pent-up demand.

The launch of Parktown Residence and Elta in February 2025 marked a turning point for Singapore’s property market, propelling sales to unprecedented levels for the month. Parktown Residence, a massive 1,193-unit integrated development in Tampines, sold 1,041 units—87% of its total—at a median price of $2,363 per square foot (psf). Its success stems from its prime location in Tampines North, offering seamless connectivity via the forthcoming Tampines North MRT station on the Cross Island Line, set to open in 2030, and direct access to a retail mall, bus interchange, and community facilities. This project represents a rare fully integrated offering in a mature estate, appealing to buyers seeking convenience and long-term value.

Declining mortgage rates have played a crucial role in driving February’s sales surge, making homeownership more attainable for a broader pool of buyers. As of March 2025, fixed-rate home loans in Singapore hover between 2.35% and 2.5%, down from peaks above 3% in late 2022, reflecting a softening in the Singapore Overnight Rate Average (Sora), which influences local mortgage pricing. This drop has been bolstered by global monetary trends, with the US Federal Reserve expected to maintain steady rates at its March 20, 2025, meeting amid uncertainties tied to new US economic policies under President Donald Trump, including spending cuts and tariffs.

HDB upgraders have emerged as a dominant force in the private home market, leveraging rising flat values to transition into condominiums. In 2024, 5,420 new and resale private homes were purchased by buyers with HDB addresses, a 7.1% increase from 5,060 in 2023, signaling a rebound in upgrading activity after a slowdown in prior years. This trend is particularly evident in Tampines, where approximately 2,500 flats are reaching their five-year Minimum Occupation Period (MOP) between 2024 and 2025, freeing owners to sell and reinvest in private properties like Parktown Residence.

February’s sales data reveals a clear suburban dominance, with 1,452 of the 1,575 units sold located in the Outside Central Region (OCR), compared to just 25 in the Core Central Region (CCR) and 98 in the Rest of Central Region (RCR). This skew reflects buyer preference for affordability and lifestyle offerings in mature estates like Tampines and Clementi, where infrastructure enhancements—like the relocation of Paya Lebar Air Base, freeing land for future development—promise long-term appreciation. The OCR’s performance is the strongest since July 2015, when 1,523 units were sold, highlighting a sustained suburban renaissance.

The February 2025 sales surge is a testament to Singapore’s property market resilience, underpinned by strategic launches and favorable financing conditions. I argue that this momentum is sustainable through 2025, with new home sales likely to reach 8,000 to 9,000 units (excluding ECs), surpassing 2024’s projected 7,000 units. The combination of lower mortgage rates, a steady pipeline of suburban projects—such as Arina East Residences and Marina View Residences—and HDB upgrader demand provides a solid foundation for growth. The government’s infrastructure plans, including new transport links and amenities in the east, further bolster this outlook, enhancing property values in areas like Tampines.

The property boom has direct implications for financial assets across multiple sectors. Real estate stocks, particularly those of developers like UOL Group, CapitaLand, and MCL Land, stand to gain as their successful projects drive revenue growth. UOL and CapitaLand, key players in Parktown Residence, could see their share prices rise by 5-10% in 2025, reflecting investor confidence in their suburban strategy. MCL Land, behind Elta, may similarly benefit as its portfolio strengthens.

​Singapore’s property market in February 2025 exemplifies a potent mix of opportunity and caution. The record-breaking sales, driven by Parktown Residence, Elta, and favorable mortgage conditions, signal a thriving sector buoyed by HDB upgraders and suburban appeal. Yet, the path forward requires careful navigation of global risks and supply dynamics to maintain this vigor. For prospective buyers, now is an opportune moment to invest, particularly in well-priced suburban launches, while developers should prioritize competitive pricing to capture selective demand. The market’s trajectory is upward, but its sustained success hinges on adaptability to an evolving economic landscape.