Singapore private home prices rose more than initially estimated in the first quarter, in a sign of continued demand in the market despite expectations of headwinds.

An index of private residential prices rose 0.8% from the previous three months, the Urban Redevelopment Authority (URA) said on Friday.

That compares with an initial estimate of 0.6% and a 2.3% jump in the last quarter of 2024.

Another closely watched measure, an index of private rents, rose by 0.4%, after staying flat in the previous quarter.

Housing affordability and cost of living have emerged as major issues during election campaigning in the city state, ahead of polls that are being held on May 3. Voter concerns especially around the prices of second-hand public housing have been a key challenge for the long-ruling People’s Action Party.

Singapore’s private residential market has been buoyed in recent months by declining borrowing costs and a desire among some to profit from flipping new apartments in the suburbs. Still, soft spots have emerged, including slower sales in the second-hand market and limited demand among locals for more expensive city centre homes.

An index for prices of government-built homes sold in the secondary market rose about 1.6% from the previous three months, according to separate data released on Friday, slightly more than an earlier 1.5% estimate.

That marks the 20th consecutive quarterly increase, a growth streak not seen for nearly three decades. The measure for such units, where the bulk of locals live, is influenced by the private market and typically moves in tandem with it.

Still, mounting economic risks stemming from the US’ global tariffs and signs of slower sales have reduced speculation that the government may intervene to dampen the property market, after multiple rounds of cooling measures in recent years.

The URA on Friday highlighted “slowing global and regional trade as well as heightened economic policy uncertainty”, and said it will calibrate future supply of land for private homes “to account for prevailing economic and market conditions”.

Source: Bloomberg

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