By Amanda Lee

Singapore's private home prices rose more than previously expected in the first quarter, signaling that domestic demand remains resilient despite global trade uncertainties and economic headwinds.

The overall private residential property price index increased 0.8% during the quarter, according to revised figures released by the Urban Redevelopment Authority on Friday. That compared with a flash estimate of 0.6% and 2.3% gain in the previous quarter.

Prices of non-landed properties rose 1.0% in the first quarter, exceeding the flash estimate of 0.6% but slowing from the 3.0% increase recorded in the previous quarter, the data showed.

Meanwhile, prices of landed properties edged up 0.4%, slightly below the flash estimate of a 0.6% but reversing the 0.1% decline seen in the previous quarter.

The city-state's economic outlook for this year is expected to be clouded by escalating global trade tensions, particularly over U.S. tariffs.

Singapore's gross domestic product growth is projected to moderate to between 0.0% and 2.0%, down from 4.4% last year, amid slowing global and regional trade and heightened policy uncertainty, the URA said.

While domestic interest rates have eased from their peak at end-2023, they are expected to remain elevated compared to the low levels seen over the past decade, URA added.

Trade tensions could shape Singapore's GDP growth trajectory, said Christine Sun, chief researcher and strategist at OrangeTee Group. This may prompt prospective homebuyers to take a more cautious stance, given the risks of an unpredictable economic landscape, she added.

The local real estate sector could face pressure from rising global trade tensions, potentially triggering market volatility that could momentarily dampen sentiment, said Marcus Chu, chief executive officer at ERA Singapore.

However, Chu noted that it is too early to assess the full impact on the property market.

"Singapore's property market is expected to remain resilient, supported by domestic buyers with a mid-to-long-term outlook, which keeps activity rooted in genuine demand rather than speculation," he added.

Write to Amanda Lee at amanda.lee@wsj.com

(END) Dow Jones Newswires

April 25, 2025 00:55 ET (04:55 GMT)

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