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MOMENTUM from an unexpected rebound in private home prices and sales in the fourth quarter of 2024 could boost prices by 3 to 6 per cent in 2025, after a 3.9 per cent gain last year, analysts said.

But while household balance sheets remain strong, global uncertainties and ample fresh supply in new projects could lead to more “discerning” buying.

Despite a notable sales rebound and price uptick in the final quarter, full-year price growth for 2024 moderated to 3.9 per cent, continuing a progressive deceleration from 10.6 per cent in 2021, 8.6 per cent in 2022, and 6.8 per cent in 2023, Chia Siew Chuin, JLL’s head of residential research, research and consultancy, said.

“The year-end market recovery partially mitigated earlier weakness yet underscored broader complex market dynamics and challenges,” she explained.

Overall, buyers may turn more selective after private home sales jumped by 38 per cent in Q4 to 7,433 units, from 5,372 units in the third quarter, based on Urban Redevelopment Authority figures released on Friday (Jan 24).