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As we look towards 2025, the Singapore real estate market continues to be a focal point for investors and homebuyers alike, offering a dynamic landscape of opportunities and challenges.
But what exactly is happening in the market? What trends should you be aware of? How are prices and demand shifting?
In this article, we'll delve into 12 key market data points that will give you a clearer picture of Singapore's real estate scene in 2025.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Singapore Property Pack
12 Key Market Data Points About the Real Estate Market in Singapore
Understanding the real estate market in Singapore requires a deep dive into various metrics such as average rents, yields, and price per square meter (sqm) or square foot (sqft). Here is a detailed analysis of these aspects.
- Average Rent:
The average rent for a private condominium in Singapore varies significantly based on location and size. In prime districts like District 9 (Orchard), rents can range from SGD 4,000 to SGD 7,000 per month for a two-bedroom unit. In suburban areas, such as District 19 (Serangoon), rents are typically lower, ranging from SGD 2,500 to SGD 4,000 per month.
- Rental Yields:
Rental yields in Singapore are generally modest, reflecting the high property prices. On average, yields range from 2.5% to 3.5% annually. Properties in central locations tend to have lower yields due to higher purchase prices, while suburban properties might offer slightly higher yields.
- Price Per Square Meter (sqm):
The price per square meter for private residential properties in Singapore varies widely. In prime areas, prices can exceed SGD 20,000 per sqm, while in suburban areas, prices might range from SGD 10,000 to SGD 15,000 per sqm.
- Price Per Square Foot (sqft):
Similarly, the price per square foot in prime districts can be as high as SGD 1,800 to SGD 2,500 per sqft. In contrast, suburban areas might see prices ranging from SGD 900 to SGD 1,400 per sqft.
- HDB Resale Prices:
For public housing (HDB flats), resale prices are more affordable. A 4-room HDB flat in a mature estate like Bishan might cost between SGD 600,000 to SGD 800,000, while in non-mature estates like Sengkang, prices could range from SGD 400,000 to SGD 600,000.
- New Launch Prices:
New condominium launches in prime areas can command prices upwards of SGD 2,500 per sqft, while those in suburban areas might start from SGD 1,200 per sqft.
- Transaction Volume:
The transaction volume for private residential properties fluctuates with market conditions. In a buoyant market, monthly transactions can exceed 1,000 units, while in a slower market, it might drop below 500 units.
- Vacancy Rates:
Vacancy rates for private residential properties in Singapore are typically low, often below 6%, reflecting strong demand and limited supply.
- Foreign Buyer Restrictions:
Foreigners are restricted from purchasing HDB flats and landed properties without special approval. They can buy private condominiums, but are subject to an additional buyer's stamp duty (ABSD) of 30%.
- Government Cooling Measures:
The Singapore government has implemented various cooling measures to stabilize the property market, including loan-to-value (LTV) limits and seller's stamp duty (SSD) to curb speculation.
- Property Tax Rates:
Property tax rates in Singapore are progressive, with owner-occupied residential properties taxed at rates ranging from 0% to 16%, depending on the annual value of the property.
- Market Outlook:
The outlook for Singapore's real estate market remains cautiously optimistic, with demand driven by a stable economy, limited land supply, and a growing population. However, potential interest rate hikes and global economic uncertainties could impact future growth.
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What You Need to Know Before Investing in Singapore's Real Estate Market in 2025
What is the projected growth rate for Singapore's real estate market in 2025?
The projected growth rate for Singapore's real estate market in 2025 is estimated to be around 4.5%, driven by strong demand in both residential and commercial sectors.
This growth is supported by Singapore's stable economic environment and strategic location in Southeast Asia.
Investors are particularly interested in the luxury segment, which is expected to see even higher growth rates.
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How has the rental yield changed over the past few years?
Rental yields in Singapore have seen a slight increase, with current yields averaging around 3.2% in 2025.
This is a result of rising rental demand, especially in prime locations like the Central Business District and Orchard Road.
Investors are attracted to these yields as they offer a stable return compared to other investment options.
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What are the current property prices per square foot in prime areas?
In 2025, property prices in prime areas such as Marina Bay and Orchard Road are averaging around SGD 3,500 per square foot.
These prices reflect the high demand and limited supply of properties in these prestigious locations.
Buyers are often willing to pay a premium for the convenience and status associated with these areas.
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How does the government regulate foreign ownership of property?
The Singapore government allows foreigners to purchase private residential properties, but restrictions apply to public housing and landed properties.
Foreigners are required to seek approval from the Land Dealings Approval Unit for purchasing landed properties.
These regulations are in place to ensure that local citizens have access to affordable housing options.
What is the impact of the Additional Buyer's Stamp Duty (ABSD) on foreign investors?
The Additional Buyer's Stamp Duty (ABSD) imposes an extra tax of 20% on foreign buyers purchasing residential properties in Singapore.
This measure aims to cool the property market and prevent speculative buying by non-residents.
Despite this, many foreign investors continue to see Singapore as a safe and lucrative market for long-term investment.
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What are the key factors driving demand in the residential market?
Key factors driving demand in Singapore's residential market include a growing expatriate population and a strong local economy.
Additionally, the government's focus on urban development and infrastructure improvements enhances the attractiveness of residential properties.
These factors contribute to a steady demand for both rental and purchase properties across various segments.
How does the vacancy rate in 2025 compare to previous years?
The vacancy rate in Singapore's real estate market has decreased to 5% in 2025, compared to 7% in previous years.
This decline is attributed to increased demand and limited new supply entering the market.
Lower vacancy rates indicate a healthier market and provide confidence to potential investors.
What are the trends in sustainable and green building practices?
Sustainable and green building practices are becoming increasingly popular in Singapore, with many new developments incorporating eco-friendly features.
These practices include energy-efficient systems, green roofs, and the use of sustainable materials, aligning with Singapore's commitment to environmental sustainability.
Properties with green certifications often command higher prices and attract environmentally conscious buyers.
How is the commercial real estate sector performing in 2025?
The commercial real estate sector in Singapore is experiencing robust growth, with office space demand increasing by 6% in 2025.
This growth is driven by the expansion of multinational corporations and the rise of co-working spaces.
Prime office locations in the Central Business District continue to be highly sought after by businesses.
What financing options are available for property buyers?
Property buyers in Singapore have access to a variety of financing options, including bank loans and mortgage packages tailored to individual needs.
Interest rates in 2025 are relatively low, averaging around 2.5%, making it an attractive time for buyers to secure financing.
Buyers are advised to compare different loan packages to find the best terms and conditions for their investment.
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What are the risks associated with investing in Singapore's real estate market?
Risks associated with investing in Singapore's real estate market include potential market volatility and changes in government policies.
Investors should also be aware of the impact of global economic conditions on Singapore's open economy.
Conducting thorough research and seeking professional advice can help mitigate these risks.
How does the public transportation system affect property values?
The public transportation system in Singapore, known for its efficiency and coverage, significantly impacts property values, especially those near MRT stations.
Properties located within a short walking distance to public transport tend to command higher prices and rental rates.
This accessibility is a key consideration for both local and foreign buyers when choosing a property.