For many young Singaporeans, entering the property market feels like navigating a maze of choices, prices, and policies. Resale condominiums, with their charm and immediate availability, often find themselves at the centre of the debate: are they the ideal first step, or should you hold out for that sparkling new launch?

2025 is shaping up to be an intriguing year for resale condos, with market forces pulling in different directions. While potential cooling measures keep sellers on their toes, the tide is shifting - interest rates are now falling, albeit at a slower pace.

Whether you're considering a resale condo for its convenience or weighing the potential risks and rewards, understanding the market landscape is key. In this guide, we'll break down the latest trends, factors shaping the market, and what to watch for in the months ahead.

Source: The Straits Times

The resale condo market in Singapore has seen its fair share of twists and turns leading up to 2025. Transaction volumes dipped slightly in 2024, as previously high interest rates dampened buyer activity. However, with rates now steadily declining, buyer confidence is making a comeback. Prices have remained resilient, particularly in well-located developments in older estates and the RCR, where demand remains strong.

Adding to the mix, November 2024 saw a record six new launches, as developers rushed to ride the wave of rising sentiment ahead of the year-end holiday season. This surge in new project launches may have drawn some demand away from the resale market, contributing to the temporary dip in transactions during that period.

Source: Today Online

Younger buyers, particularly millennials, are showing an increasing appetite for private properties. Resale condos are an attractive option for this demographic, offering immediate availability and a wider selection of units compared to new launches, which may take years to complete. Proximity to MRT stations, vibrant lifestyle hubs, and reputable schools are key considerations for this group, with many prioritising convenience and connectivity over other factors.

However, if capital growth is your priority, the resale market may not be your best bet. Unlike new launches, which often see price appreciation as the project nears completion, resale condos tend to have more stable pricing with slower growth potential.

If you are going for new private launches, do check out what green flags to spot when choosing one.

This growing interest signals a shift in how younger generations view property ownership - not just as a necessity, but as an opportunity to secure a home that complements their desired lifestyle.

What to watch in 2025

While cooling measures and cautious buyer sentiment may temper activity, the return of lower interest rates could give the market a fresh spark. Areas with upcoming infrastructure developments, such as MRT expansions, or estates undergoing revitalisation may see more buyer attention, making resale condos an attractive choice for value-conscious homebuyers and investors.

1. Economic factors: A mixed bag for buyers

Singapore's economy is showing resilience in 2025, supported by steady growth in key sectors like finance and technology. However, global uncertainties, such as geopolitical tensions and fluctuating commodity prices, still weigh on market sentiment.

Average mortgage rate in 2024 (4.1%)

Current average mortgage rate (2.87.%)

On the bright side, the US Federal Reserve's interest rate cuts have led to more attractive home loan rates locally. For younger buyers, this spells lower monthly repayments, making private properties - particularly resale condos - a more viable option. Despite this, inflationary pressures could still nudge property-related expenses upwards, such as maintenance fees and renovation costs.

2. Government policies: Balancing act

Singapore's cooling measures - designed to keep the market stable - continue to shape buying behaviour. Policies such as the Additional Buyer's Stamp Duty (ABSD) for second property purchases, and the Total Debt Servicing Ratio (TDSR), which limits loan amounts, remain in place to curb speculative buying.

While these policies ensure a sustainable market, they pose challenges for first-time buyers, particularly those hoping to stretch their budgets for a larger or better-located unit. However, the silver lining is a less volatile market, reducing the risk of over-leveraging or sudden price hikes.

3. Supply dynamics: Limited inventory, steady prices

The number of new launches and developments reaching TOP in 2025 is relatively modest, which shifts buyer attention to the resale market. Below are some of the projects that TOP in 2025 and have witnessed transactions.

In areas with limited new supply, resale condos in prime locations - like those near MRT stations, lifestyle hubs, or business districts - are likely to see stable or slightly increasing prices due to sustained demand.

Younger buyers seeking value for money will find opportunities in areas with less competition. However, they may need to act quickly to secure units in high-demand locations as inventory tightens.

4. Buyer demand: Prioritising lifestyle

Millennials are entering the market with a different set of priorities compared to previous generations. They prefer lifestyle-centric locations, where they can enjoy easy access to amenities, trendy cafes, or co-working spaces. Estates like Tiong Bahru, Holland Village, and Tanjong Katong are increasingly popular among this crowd.

Moreover, this generation values connectivity. Resale condos near MRT stations, integrated developments, or workplaces are in high demand, even if they come at a premium. The focus on work-life balance and shorter commutes is shaping buying decisions more than ever.

5. Rental market: Supply pressures on demand

Singapore's rental market is showing signs of cooling in 2025 as an increasing supply of rental units enters the market. With more private properties reaching completion and being rented out, the added supply is putting downward pressure on rental prices in certain areas.

Rental: CCR (Blue) vs RCR (Orange) vs OCR (Red)

For owners of resale condos, this means rental demand might not be as favourable across the board. Properties near international schools and business hubs or in prime locations may still see steady demand, but those in less central or oversupplied areas could face greater challenges in attracting tenants or commanding competitive rents.

6. Government Land Sales (GLS) Programme

The overall supply of private homes in Singapore significantly influences the resale market. Here's an overview of the current and upcoming inventory:

• First half of 2025: The government has maintained a steady supply of private housing land, with the 1H2025 GLS Programme expected to yield approximately 8,505 private residential units, including Executive Condominiums (ECs).

• Pipeline supply: The confirmed list for 1H2025 will contribute to a total pipeline supply of about 57,200 private housing units, encompassing both private residences and ECs.

Impact on the resale market: While the GLS Programme aims to balance housing demand and supply, the actual impact on the resale market on various factors:

• Completion timeline: Newly launched projects typically require several years before completion. Therefore, the immediate effect on the resale market is limited, as buyers seeking ready-to-move-in options continue to turn to resale properties.

• Buyer preferences: Many buyers prefer resale units due to their established locations, larger unit sizes, and immediate availability. This sustained demand helps maintain the resilience of the resale market.

In summary, while the planned supply of private homes is set to increase, the resale market remains robust due to ongoing buyer demand, the time required for new developments to be completed.

1. ROI potential: Are resale condos still worth it?

For investors, resale condos remain a viable choice in 2025, but the market is becoming more nuanced.

Demand for rental units remains robust near business hubs, international schools, and lifestyle hotspots, even as rental prices soften in less central areas. This highlights the importance of location in determining rental ROI.

Key insight for investors:

To maximise returns, focus on properties in high-demand areas with unique selling points that appeal to your potential tenants.

2. Capital appreciation: Long-term growth potential

Resale: CCR (Blue) vs RCR (Orange) vs OCR (Red)

While resale condos may not offer the flashiest appreciation in the short term, their long-term potential remains strong, particularly in areas poised for infrastructure improvements or redevelopment.

• Emerging opportunities: Districts near upcoming MRT lines (e.g., the Seletar Line or Tengah Line) or rejuvenation projects (e.g., the Greater Southern Waterfront) are expected to see significant appreciation in the coming years.

Source: The Straits Times

• Established neighbourhoods: Older estates with already strong connectivity and amenities continue to offer steady capital appreciation, making them a safe bet for conservative investors.

Key insight for investors:

Consider turning to URA's Masterplan to find out what planned government initiatives and infrastructure developments are there for the area you are considering.

Key takeaway:

Resale condos in 2025 remain an attractive investment, especially for those who adopt a strategic approach. Prioritise location and future growth potential over short-term rental yields, and keep an eye on government plans to identify the next wave of high-demand districts. By focusing on these factors, investors can secure properties that balance immediate returns with long-term capital appreciation.

To understand the dynamics of Singapore's resale condo market in 2025, it's essential to examine how the market behaves across the three key regions: CCR, RCR, and OCR. Each region offers unique opportunities and challenges, favouring either buyers or sellers depending on the circumstances.

1. Core Central Region (CCR): The luxury zone

The CCR encompasses prime districts like Orchard, Marina Bay, and Bukit Timah, home to high-end condos and luxurious developments.

Market dynamics:

• The CCR continues to appeal to wealthy local and foreign buyers looking for exclusivity and prestige.

• With significant supply from both new launches and resale units, buyers in 2025 are likely to have more negotiating power, especially for older developments.

• Rental yields may soften due to increased supply, making CCR properties more attractive for long-term capital appreciation rather than immediate ROI.

2. Rest of Central Region (RCR): The balanced middle ground

The RCR, often referred to as the "city fringe," includes neighbourhoods like Tiong Bahru, Queenstown, and Novena. This region strikes a balance between accessibility, lifestyle, and affordability.

Market dynamics:

• Demand remains strong among younger buyers and families due to the blend of vibrant communities and proximity to the city centre.

• With , resale units in the RCR may experience stable or rising prices in sought-after locations.

• Rental yields are likely to remain steady in well-connected areas near MRT stations and business hubs.

3. Outside Central Region (OCR): The affordable suburbs

The OCR covers suburban areas like Punggol, Sengkang, and Jurong, known for their affordability and family-friendly environments.

Market dynamics:

• The OCR appeals to first-time buyers and upgraders looking for more spacious resale condos at lower PSF prices compared to new launches, making it an attractive option for those prioritising value and space.

• Upcoming developments, such as the Jurong Lake District and Cross Island Line, are expected to boost demand in specific areas.

• However, some districts face oversupply issues, particularly in locations with multiple new launches. This could put downward pressure on resale prices and rental yields.

Key takeaway:

• The CCR favours buyers due to abundant supply and negotiation opportunities.

• The RCR is balanced, with certain areas tilting in favour of sellers due to steady demand.

• The OCR offers affordability and growth potential, making it a buyer's market in oversupplied districts.

The resale condo market in 2025 is shaping up to be an intriguing space, with multiple factors influencing its direction. While prices and transaction volumes have been adjusting in response to evolving economic conditions, buyer sentiment and investment demand continue to play a crucial role.

With interest rates easing, government policies remaining a key consideration, and regional trends shaping demand, understanding these market shifts will be vital for homebuyers and investors alike. Keeping a close watch on financing options, market sentiment, and upcoming launches will help navigate this ever-changing landscape.

But the big question remains - is 2025 a better time to buy or sell? We break it down in our next article: The Resale Condo Market In 2025: A Buyer's Or Seller's Game?

Views expressed in this article belong to the writer(s) and do not reflect PropNex's position. No part of this content may be reproduced, distributed, transmitted, displayed, published, or broadcast in any form or by any means without the prior written consent of PropNex.

For permission to use, reproduce, or distribute any content, please contact the Corporate Communications department. PropNex reserves the right to modify or update this disclaimer at any time without prior notice.