Buying property in Singapore City: is it worth it?

Authored by the expert who managed and guided the team behind the Singapore Property Pack

Yes, the analysis of Singapore's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Singapore. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Singapore real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers across Singapore's key districts. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the current average price per square foot in Singapore across condos, landed houses, and HDB flats?

As of September 2025, Singapore's property market shows distinct pricing tiers across different property types.

Condos average SGD 1,972 per square foot across the island, with Core Central Region properties commanding premium prices up to SGD 2,335 psf while Outside Central Region units average around SGD 1,742 psf. This pricing structure reflects Singapore's carefully planned urban development and the strong demand for well-located properties.

Landed houses trade between SGD 1,808 to SGD 2,008 per square foot, with detached homes often exceeding SGD 1,910 psf due to their scarcity and prestige factor. The landed property segment remains exclusive given Singapore's limited land supply and strict zoning regulations.

HDB flats present the most affordable option at SGD 597 per square foot, with average resale flat prices around SGD 612,500. These government-built flats serve as the backbone of Singapore's housing strategy, providing accessible homeownership for citizens and permanent residents.

The price differences between property types reflect Singapore's structured housing ecosystem, where each segment serves specific demographics and investment strategies.

How have property prices in Singapore changed over the past 5 years, and what's the trend for the next 5, 10, and 20 years?

Singapore property prices have shown remarkable resilience with steady growth patterns over the past five years.

Both private homes and HDB flats have risen approximately 44-45% over the last decade, with even more dramatic gains of over 150% spanning the past 20 years. This consistent appreciation demonstrates Singapore's property market stability and the effectiveness of government housing policies in maintaining sustainable growth.

Recent growth has moderated since 2023, with annual increases of 3-7% for private homes and 5-10% for HDB flats through 2025. This cooling reflects the impact of government measures designed to prevent speculative bubbles while maintaining market stability.

Looking ahead, the next 5-20 years are projected to see continued but more moderate growth due to several factors including government cooling measures, increased supply from new developments, and broader economic considerations. Market analysts expect annual appreciation rates to settle between 2-5% for most property segments.

The long-term outlook remains positive given Singapore's strategic position as a global financial hub, limited land supply, and strong institutional framework supporting property rights.

Which areas of Singapore are the most expensive right now, and which are still considered affordable or undervalued?

Singapore's property market displays clear geographical pricing patterns that reflect proximity to the Central Business District and amenities.

District Category	Specific Areas	Average Condo Price (SGD/psf)	Investment Appeal
Core Central Region	Districts 9/10/11, Marina Bay, CBD, Orchard	2,300-3,000	Premium location, lower yields
Rest of Central Region	Toa Payoh, Novena, Queenstown	1,900-2,200	Good balance, strong rental demand
Outside Central Region	Pasir Ris, Sengkang, Tampines, Woodlands	1,700-1,800	Value opportunity, growing infrastructure
Mature HDB Estates	Ang Mo Kio, Bedok, Jurong	550-650	Affordable entry, established amenities
Non-Mature HDB Estates	Punggol, Sembawang	500-600	Growth potential, new developments

What are the rental yields in different districts, and how do they compare between property types?

Rental yields in Singapore vary significantly based on location and property type, creating distinct investment opportunities.

Condos typically generate rental yields ranging from 3-4%, with prime districts offering lower yields due to high capital values while emerging or city fringe areas provide higher returns. The inverse relationship between property prices and rental yields means investors must choose between capital appreciation potential and immediate income generation.

HDB flats can offer yields up to 6-7% in certain areas, making them attractive for income-focused investors despite strict rental regulations that limit flexibility. These government-built units benefit from strong rental demand from young professionals and families seeking affordable accommodation.

Landed houses usually deliver the lowest yields, typically under 3%, due to their high purchase prices and limited rental market appeal. Most landed property investors focus on capital appreciation rather than rental income, as the tenant pool for such premium properties remains relatively small.

City fringe districts (D14-D19) often provide the strongest yield potential, combining lower entry prices with robust rental demand from both locals and expatriates seeking convenient locations at reasonable rents.

How do mortgage rates and loan-to-value limits affect the cost of buying now versus waiting?

Current mortgage conditions significantly impact property purchase decisions and timing strategies.

As of September 2025, mortgage rates range from 3.2-4.5% for fixed loans, having retreated from peaks experienced in 2023-2024 but remaining elevated compared to the ultra-low rates of previous years. These rates directly affect monthly servicing costs and overall affordability for property buyers.

Loan-to-value (LTV) limits create substantial financing constraints, with first-time private property buyers limited to 75% financing, while second and subsequent loans drop to 55% LTV. High-debt individuals face even stricter requirements, potentially requiring larger cash deposits that can exceed SGD 500,000 for typical condo purchases.

The decision between buying now versus waiting involves balancing higher financing costs against potential price appreciation. Waiting for lower rates risks missing out on price gains, while buying at current rates means higher servicing costs but immediate market exposure.

Cash-rich buyers gain significant advantages in the current environment, as they can bypass financing constraints and negotiate better prices with motivated sellers facing their own financing challenges.

What government policies, taxes, and cooling measures directly affect different types of buyers?

Singapore's property market operates under comprehensive government oversight designed to maintain stability and affordability.

The tax structure creates significant cost differences between buyer categories. All buyers pay Buyer's Stamp Duty ranging from 1-6% based on property value, but Additional Buyer's Stamp Duty (ABSD) creates steep penalties for multiple property ownership and foreign investment.

Singaporeans enjoy favorable treatment with 0% ABSD on their first property, but face 20% on second properties and 30% on third and subsequent purchases. Permanent residents pay 5% ABSD on first properties and 30% on additional units, while foreigners face a substantial 60% ABSD on all purchases as of 2025.

Financing restrictions include stringent LTV limits and Total Debt Servicing Ratio (TDSR) requirements that cap monthly debt payments at 55% of gross income. These measures ensure buyers don't overextend financially while cooling speculative activity.

HDB flat buyers face additional restrictions including Minimum Occupation Period (MOP) requirements and citizenship restrictions, while all property sellers pay Seller's Stamp Duty if reselling within three years of purchase, discouraging short-term speculation.

Which areas have the strongest long-term appreciation potential based on infrastructure and development plans?

Singapore's long-term property appreciation largely follows major infrastructure developments and urban transformation projects.

Areas near new MRT lines consistently outperform the broader market, as improved connectivity directly translates to property value increases. The government's commitment to expanding public transport creates predictable appreciation patterns for properties within walking distance of stations.

Major transformation projects offer exceptional appreciation potential, including Jurong Lake District development as a second CBD, Paya Lebar Airbase redevelopment into a mixed-use hub, and Greater Southern Waterfront transformation. These large-scale projects take 10-20 years to complete, creating sustained demand and value growth.

City fringe and Outside Central Region districts with new transport links experience faster appreciation rates as they transition from peripheral to well-connected locations. Areas like Punggol and Sembawang benefit from this dynamic as new infrastructure reduces travel times to the city center.

It's something we develop in our Singapore property pack, analyzing specific infrastructure timelines and their expected impact on property values across different districts.

What's the average time to resell a property in different neighborhoods, and what are typical profit margins?

Property resale timelines and profitability vary significantly across Singapore's diverse neighborhoods and property segments.

Average resale times range from 3-6 months for most properties, though Core Central Region units often require longer marketing periods due to their high price points and smaller buyer pool. Properties priced above SGD 3 million face extended selling times as fewer buyers can afford such purchases.

Typical profit margins for private properties held at least five years range from 10-25%, with higher returns achieved by well-timed purchases or new launch units in up-and-coming areas. Properties bought during market downturns or in areas experiencing infrastructure improvements tend to deliver superior returns.

HDB flats generally provide more predictable but modest returns, with profit margins typically ranging from 15-30% over 5-10 year holding periods. The government's price controls and eligibility restrictions create more stable but limited profit potential compared to private properties.

Resale success often depends on timing market cycles, with properties purchased during cooling periods and sold during growth phases achieving the highest margins. Location fundamentals like transport connectivity and amenity access remain key drivers of resale performance.

How do short-term investment opportunities compare to medium- and long-term strategies?

Singapore's property investment landscape offers distinct risk-return profiles across different time horizons.

Short-term investments face significant regulatory hurdles, with Seller's Stamp Duty penalizing sales within three years and ABSD creating high entry costs for additional properties. New launch purchases can offer below-market pricing opportunities, but recent cooling measures have restricted profitable flipping strategies.

Medium-term strategies spanning 3-7 years align better with Singapore's regulatory framework, allowing investors to avoid seller penalties while capturing market appreciation cycles. This timeframe suits investors seeking to benefit from infrastructure completion or area transformation projects.

Long-term holdings of 5+ years in areas with confirmed infrastructure development provide the lowest risk and most predictable returns. Singapore's stable political environment and consistent urban planning make long-term strategies particularly attractive for wealth preservation and steady appreciation.

The current market environment favors patient investors who can hold through cooling periods, as government measures have compressed short-term speculation while maintaining long-term fundamentals supporting property values.

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.

What's the minimum budget needed to enter the market for each property type?

Entry budgets for Singapore property vary dramatically across different segments and locations.

1. **HDB BTO/Resale Flats**: SGD 350,000-500,000 for 3-room units in non-mature estates, representing the most accessible homeownership option2. **Outside Central Region Condos**: Minimum SGD 1 million for smallest units, typically studio or 1-bedroom apartments3. **Rest of Central Region Condos**: SGD 1.2-2 million for entry-level units with better location and amenities4. **Core Central Region Condos**: SGD 2-3 million minimum for prime district properties with prestigious addresses5. **Entry-Level Landed Houses**: SGD 4-6 million for terrace houses in accessible locations, with bungalows requiring significantly higher budgets

These budgets assume maximum LTV financing, meaning actual cash requirements include 20-25% down payments plus additional costs like stamp duties, legal fees, and renovation expenses. Foreign buyers face substantially higher cash requirements due to ABSD obligations.

First-time buyers should budget an additional 10-15% beyond property price for transaction costs, furnishing, and initial maintenance expenses to ensure adequate financial preparation.

If you're buying to live, where's the best balance between lifestyle, convenience, and affordability?

Singapore offers several neighborhoods that successfully balance lifestyle quality, convenience, and reasonable pricing for owner-occupiers.

City fringe areas like Toa Payoh, Novena, and Queenstown deliver exceptional value propositions, providing close proximity to the CBD while maintaining lower costs than Core Central Region properties. These mature neighborhoods offer established amenities, good schools, and excellent transport connectivity.

Integrated developments combining residential, retail, and transport facilities create convenient living environments without premium pricing. Projects near MRT stations with shopping malls provide car-free lifestyle options particularly attractive to young professionals and families.

Mature HDB estates with comprehensive amenities offer the most affordable lifestyle balance, featuring established community facilities, markets, schools, and transport links. Areas like Ang Mo Kio and Bedok provide suburban comfort with urban connectivity.

It's something we develop in our Singapore property pack, analyzing specific neighborhoods based on lifestyle factors, commute times, and long-term livability considerations beyond just property prices.

If you're buying to rent out or resell, which property types and districts give you the best positioning?

Investment success in Singapore property requires careful selection based on rental demand patterns and capital appreciation potential.

City fringe and Outside Central Region condos in districts 14-19 offer optimal investment positioning, combining attractive rental yields with reasonable entry costs. These areas attract steady tenant demand from professionals seeking convenient locations at affordable rents.

New launch condos with future transformation potential provide strong long-term resale prospects, particularly in areas scheduled for infrastructure upgrades or commercial development. Early-stage purchases often capture below-market pricing before area improvements drive values higher.

Resale HDB flats in emerging estates present attractive rental yield opportunities despite regulatory limitations, as they serve the substantial market of young professionals and families seeking affordable accommodation. Areas like Punggol and Sembawang offer growth potential as they mature.

For resale-focused strategies, properties near confirmed MRT extensions or major development projects offer predictable appreciation timelines, allowing investors to plan exit strategies around infrastructure completion dates.

It's something we develop in our Singapore property pack, providing detailed analysis of rental yields, capital appreciation potential, and investment positioning across Singapore's diverse property landscape.

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.

Sources

1. Average Condo Price Singapore - BambooRoutes
2. Singapore Property Price History - Global Property Guide
3. Housing Cost Singapore Statistics - SmartWealth
4. Landed Home Prices Q1 2025 - EdgeProp
5. New Launch Resale Price Gaps 2025 - StackedHomes
6. Singapore Property Market Q1 2025 - SHE Real Estate
7. Average House Price Singapore - SmartWealth
8. Average Price 2-Bedroom Condo Singapore - BambooRoutes