In a notable shift for the Singapore real estate market, the average price of landed homes surged to $2,008 per square foot in the first quarter of 2025, reflecting a 3.3% increase from the previous quarter. This milestone marked the first occasion in the history of this market segment that prices had exceeded the $2,000 per square foot threshold. The overall demand for landed properties has been bolstered by a combination of favorable economic conditions and shifting consumer preferences, propelling the market toward unprecedented heights.
The total value of landed homes sold during this quarter reached an impressive $2.4 billion, which also signaled a 3.3% growth quarter-on-quarter. More strikingly, this figure represented a substantial year-on-year increase of 53.2% from the $1.6 billion recorded in the same period in 2024. Such a significant leap in value highlights the robust appetite among buyers for landed properties, despite the challenges posed by fluctuating economic conditions.
Detached homes were particularly noteworthy in this quarter, witnessing a remarkable 4.8% rise in average absolute prices, which brought the average price to $12.2 million. This category of properties has proven to be particularly attractive to affluent buyers seeking larger living spaces, further contributing to the heightened demand in the landed home segment. The allure of detached homes lies not only in their spaciousness but also in their potential for customization and privacy, which many buyers find appealing in a post-pandemic environment.
Several factors have underpinned this strong growth in landed home prices. Income growth among Singaporeans has been a significant driver, allowing more individuals and families to consider purchasing larger homes. This financial empowerment is complemented by declining interest rates, which have made mortgage financing more accessible and affordable for buyers.
As borrowing costs decrease, potential homeowners feel more confident in their purchasing decisions, leading to increased transactions in the landed property market. Additionally, there is a prevailing trend toward larger units in new launches, reflecting a shift in consumer preferences. Many buyers are now prioritizing more spacious living arrangements, a trend that has gained momentum as remote work and flexible living arrangements become more commonplace.
This shift has resulted in a greater demand for landed homes, as families seek to create comfortable and functional living spaces that accommodate their evolving lifestyles. As the Singapore real estate market continues to navigate these changes, the surge in landed home prices signifies not only a recovery but also a transformation in consumer behavior and market dynamics.
With the average price now firmly established above the $2,000 per square foot mark, stakeholders in the real estate sector will be closely monitoring future trends, as the demand for landed properties shows no signs of waning. The interplay of economic factors and shifting preferences will likely shape the trajectory of the market in the coming quarters.
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News Source: Edgeprop
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