Prime non-landed home sales slow in Q1 2025

• Sales of prime non-landed homes declined in Q1 2025 compared to Q4 2024 and the same period a year ago. High resale price expectations, lack of new project launches, and ongoing market measures dampened both resale and new sale activities.
• Without fresh project debuts, Prime new sales in Q1 2025 were driven by previously launched projects. The Collective at One Sophia, Hill House, and 19 Nassim collectively accounted for the majority of transactions in this segment.

Vacancy dips as new completions lag demand

• Three Prime non-landed projects – Pullman Residences Newton, Klimt Cairnhill, and Wilkie Hills – received Temporary Occupation Permits in Q1 2025, expanding the Prime stock by 487 units.
• Vacancy rates in the Prime non-landed segment decreased as absorption of existing units surpassed new supply, resulting in a modest market tightening.

Prime non-landed housing market strengthens with continued price and rent uptick

• Improved sentiment, driven by lowered rates and a better economic outlook since Q3 2024, persisted into Q1 2025. Sellers of Prime non-landed homes, bolstered by keen local demand, held firm on asking prices. This sustained the quarterly price increase.
• Prime non-landed home rents rose in Q1 2025, corroborating our expectation of a steady improvement from H2 2024. This trend is underpinned by economic growth, increased hiring, and a lower rental base providing the headroom for further appreciation.

Outlook: Elevated geopolitical risks and global trade slowdown may temper price and rental growth

• Near-term Prime home prices may find support in local demand. However, global uncertainties, including geopolitical and trade conflicts, could slow interest rate cuts. This, alongside cooling measures, adds challenges, potentially dampening demand.
• Lower vacancy rates offer support for Prime rents, but a projected cloudier business outlook and economic slowdown may temper growth. These opposing factors should keep rents relatively stable, with modest inflationary upsides likely.