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Singapore's property market continues to demonstrate resilience with steady price appreciation, driven by limited supply and robust demand from both local and international buyers.
As of September 2025, private residential prices have risen approximately 4.7% year-on-year, with analysts projecting continued growth of 3-4% through 2025 and into 2026, supported by a healthy pipeline of over 10,000 new residential units expected to launch this year.
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Singapore's property market shows steady growth with prices up 4.7% year-on-year and analysts forecasting 3-4% growth through 2025-2026.
Over 10,000 new residential units are launching in 2025, with rental yields averaging 3.5-4% in prime city districts and strong transaction activity despite cooling measures.
| Market Indicator | Current Status | Outlook |
|---|---|---|
| Price Growth (YoY) | 4.7% as of Q2 2025 | 3-4% projected for 2025-2026 |
| New Supply 2025 | 10,000+ units launching | 50% higher than 2021-2023 average |
| Rental Yields | 3.5-4% in prime districts | Stable to slightly upward |
| Transaction Volume Q1 2025 | 3,375 units sold by developers | Stabilized after cooling measures |
| Interest Rate Impact | Elevated but beginning to ease | Expected gradual reduction |
| Foreign Buyer Demand | Moderated due to ABSD | Selective interest in trophy assets |
| Fastest Growth Areas | City fringe neighborhoods | Outram, Bukit Merah, Clementi leading |
How have Singapore's property prices moved over the past 12 months?
Singapore's private residential property prices have demonstrated solid upward momentum over the past year.
As of Q2 2025, private residential prices increased by approximately 4.7% year-on-year, with non-landed condominiums leading the growth while landed properties and central district units showed more moderate appreciation.
The quarterly growth pattern reveals a slight moderation in momentum, with Q2 2025 showing a 0.5% quarter-on-quarter increase compared to 0.8% in Q1 2025. This suggests the market is finding a sustainable pace of growth rather than experiencing rapid acceleration.
Growth has been particularly strong in suburban and city fringe areas, while prime Core Central Region districts have seen slower but still positive price appreciation due to affordability constraints and government cooling measures.
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What are analysts projecting for property prices in the next 12 to 24 months?
Major real estate consultancies maintain a positive but cautious outlook for Singapore's property market through 2025 and 2026.
CBRE and PropNex forecast property price growth of 3-4% for 2025, with this steady appreciation expected to continue into 2026 as supply constraints and firm buyer confidence support the market.
Trading Economics projects the residential property index will reach approximately 231 points in 2026, up from 213 points in Q2 2025, indicating sustained positive momentum over the forecast period.
This growth trajectory is supported by several factors including limited land supply, a healthy pipeline of new launches, and Singapore's continued appeal as a regional financial hub attracting both residents and investors.
The projected growth rate represents a more sustainable pace compared to previous boom periods, suggesting market maturity and stability.
How many new residential units are expected to launch in Singapore this year?
Singapore's residential supply pipeline is experiencing significant expansion in 2025.
Over 10,000 private residential units are expected to launch throughout 2025, representing approximately 50% higher supply than the average annual launches from 2021-2023.
The third quarter of 2025 alone will see approximately 5,000 new condominium units launching across various districts in Singapore, with strong activity continuing through Q4.
Close to 50 new projects are planned for launch in 2025, with significant development activity concentrated in suburban areas and city fringe locations where land costs remain more manageable for developers.
This increased supply reflects developer confidence in market demand and their ability to achieve profitable sales despite elevated construction costs and government cooling measures.
What is the current rental yield in Singapore City, and how is it trending?
Rental yields in Singapore remain attractive for property investors, particularly in non-prime locations.
Prime Singapore city districts currently offer rental yields averaging 3.5-4%, with yields typically higher in city fringe areas and Outside Central Region (OCR) districts where rental demand remains strong among expatriates and new residents.
Rental yields have remained stable or edged slightly upward due to rising rental rates and limited vacancy across key residential precincts, creating favorable conditions for property investors.
The rental market benefits from Singapore's continued role as a regional business hub, steady population growth from immigration, and limited new rental supply in established neighborhoods.
Investors should note that yields vary significantly by location and property type, with newer developments in well-connected suburban areas often achieving yields at the higher end of the range.
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How has transaction volume changed in the past quarter compared to last year?
Singapore's property transaction volumes have stabilized following the initial impact of government cooling measures.
Developers sold 3,375 private residential units in Q1 2025, representing a slight decline from Q4 2024 but remaining broadly in line with transaction levels seen throughout 2024.
This stabilization indicates that the market has adjusted to the current policy environment, with both buyers and sellers adapting their expectations and strategies accordingly.
Transaction activity is now supported by renewed interest from domestic buyers and selective participation from foreign investors who view Singapore properties as attractive despite higher stamp duties.
The consistent transaction volumes suggest healthy market liquidity and buyer confidence in Singapore's long-term property fundamentals.
What government policies or cooling measures are currently in place, and are more expected?
Singapore maintains a comprehensive set of property cooling measures designed to ensure market stability and housing affordability.
| Cooling Measure | Current Rate/Requirement | Target Group |
|---|---|---|
| Additional Buyer's Stamp Duty (ABSD) | Varies by buyer category and property count | Foreign buyers and multiple property owners |
| Loan-to-Value (LTV) Limits | Tightened requirements for multiple loans | All property buyers using financing |
| Seller's Stamp Duty (SSD) | Applied on sales within holding period | Property flippers and short-term holders |
| Total Debt Servicing Ratio (TDSR) | Maximum 60% of gross monthly income | All borrowers for property loans |
| Mortgage Servicing Ratio (MSR) | Maximum 30% for HDB loans | HDB flat buyers |
The government continues to monitor price and demand metrics closely, with authorities maintaining their readiness to implement additional measures if property prices accelerate beyond sustainable levels.
As of September 2025, no new major cooling measures have been announced, suggesting the current policy framework is achieving its intended stabilizing effect on the market.
How are interest rates impacting mortgage affordability in Singapore right now?
Interest rates remain a key factor influencing property affordability and buyer behavior in Singapore's market.
Domestic interest rates remain elevated compared to their post-pandemic lows but have begun to ease slightly, improving affordability conditions and triggering renewed interest in home purchases among upgraders and first-time buyers.
While rates are expected to remain above long-term historical lows, prospects of further gradual reduction may encourage more potential buyers to enter the market over the coming months.
The slight easing in rates, combined with steady income growth in Singapore, is helping to offset some of the affordability pressures created by rising property prices.
Buyers are increasingly focused on securing fixed-rate financing options to protect against potential rate volatility, influencing their choice of mortgage products and lenders.
What is the vacancy rate in different districts across Singapore City?
Vacancy rates across Singapore remain low due to sustained rental demand, though conditions vary by district and price segment.
The Outside Central Region (OCR) and Rest of Central Region (RCR) show the tightest vacancy conditions, benefiting from strong demand from both local residents and expatriates seeking value-for-money accommodations.
The Core Central Region has experienced marginally higher vacancy rates as more luxury residential units reach completion, creating temporary oversupply in the high-end rental market.
Overall low vacancy rates reflect Singapore's continued attractiveness as a regional business hub, steady population growth, and limited new rental supply in established neighborhoods.
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We did some research and made this infographic to help you quickly compare rental yields of the major cities in Singapore versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Which neighborhoods in Singapore are seeing the fastest price appreciation?
Price growth patterns across Singapore reveal distinct geographical trends driven by connectivity, new supply, and buyer preferences.
1. **Outram District** - Leading price appreciation due to central location and limited new supply2. **Bukit Merah** - Strong growth driven by redevelopment activity and improved transport links 3. **Clementi** - Benefiting from proximity to business districts and upcoming infrastructure projects4. **Queenstown** - Experiencing renewed interest due to urban renewal initiatives and lifestyle amenities5. **City Fringe Areas** - Generally showing faster growth than prime central locations due to better affordabilityThese fringe and city fringe neighborhoods benefit from better connectivity to business districts, more reasonable pricing compared to prime areas, and active new project launches that stimulate broader area interest.
Prime Core Central Region districts show slower but still positive growth as affordability constraints and ABSD measures limit demand for luxury units priced above S$2 million.
How is foreign buyer demand shifting in Singapore's property market?
Foreign buyer participation in Singapore's property market has evolved significantly following policy changes and global economic shifts.
Foreign demand has moderated substantially since the Additional Buyer's Stamp Duty (ABSD) increases, with international buyers now representing a smaller portion of total transactions compared to previous years.
However, there is renewed selective interest from buyers in China, India, and ASEAN countries, particularly for trophy assets and well-located city condominiums that offer long-term capital preservation and rental income potential.
The current market mix leans heavily toward local buyers and permanent residents, who benefit from lower stamp duty rates and better financing terms, creating a more domestically-driven market dynamic.
Foreign investors who do participate tend to focus on prime locations with strong rental potential and properties that qualify for residency or immigration benefits.
What are the current construction costs and how do they affect new project launches?
Construction costs remain elevated in Singapore, influencing developer strategies and project pricing across the market.
Construction costs continue to face upward pressure due to labor shortages, rising material prices, and stringent safety and environmental regulations, which developers must factor into their launch pricing strategies.
Despite these cost pressures, developers continue to proceed with new launches, particularly for well-located projects with strong amenities that can command premium pricing to offset higher development expenses.
Elevated construction costs are limiting speculative development activity, ensuring that only projects with strong location fundamentals and clear market demand proceed to launch.
This cost environment is contributing to higher average selling prices for new developments, though developers report healthy take-up rates for appropriately-priced projects in desirable locations.
How does Singapore's property outlook compare to other key Asian cities?
Singapore's property market demonstrates superior stability and resilience compared to other major Asian financial centers.
| Market Characteristic | Singapore | Hong Kong | Shanghai |
|---|---|---|---|
| Price Volatility | Low - steady growth | High - significant fluctuations | High - policy-driven swings |
| Rental Yields | 3.5-4% in prime areas | 2-3% in prime areas | 2.5-3.5% varies widely |
| Market Liquidity | High - active transactions | Moderate - policy dependent | Low - restricted activity |
| Foreign Buyer Access | Open but with stamp duties | Limited - residency requirements | Highly restricted |
| Vacancy Rates | Low across most districts | Variable by district | High in some developments |
| Regulatory Environment | Stable and transparent | Subject to political changes | Frequently changing policies |
Singapore's tightly regulated supply, transparent legal framework, and continued appeal to global businesses and residents contribute to its superior market fundamentals compared to regional competitors.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Singapore's property market outlook for September 2025 reveals a stable and resilient sector with steady price growth, healthy supply levels, and continued investor confidence despite ongoing government cooling measures.
With rental yields remaining attractive, new supply meeting demand, and the city-state maintaining its appeal as a regional hub, the market presents opportunities for both investors and residents seeking quality properties in a well-regulated environment.
Sources
- Global Property Guide - Singapore Price History
- Trading Economics - Singapore House Price Index
- Darren Ong - Singapore Property Market Outlook 2025
- Dollar Back Mortgage - Hottest Condo Launches
- SRX Property Price Index
- Urban Redevelopment Authority - Media Release
- Trading Economics - Singapore Housing Index
- MySG Property - New Launches List
- Urban Redevelopment Authority - Property Data
- Singapore Department of Statistics