All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Singapore's property market is included in our pack
Thinking about investing in real estate in Singapore? You're not alone!
Many people are captivated by Singapore's cosmopolitan charm and dream of owning a modern apartment or a luxurious penthouse there.
Does it make sense, though? Are property prices increasing in Singapore? What is the price per sqm? Is it more profitable to buy in Orchard Road or Marina Bay? Are there any secret taxes? What rental yields should I expect?
We've solved it for you.
The BambooRoutes team has extensively researched this market. As a matter of fact, we've put all our findings together in a pack. Get it now.
In the lines below, we'll provide you with helpful information.
How's the property market in Singapore?
Are property prices booming or faltering? Instead of relying on opinions, we turn to hard data and stats for clarity
Types of properties
In Singapore, there are various types of properties available for sale.
These include public housing, also known as Housing and Development Board (HDB) flats, which are subsidized and cater to the majority of Singaporeans.
Private condominiums and apartments are another option, offering a wide range of facilities and amenities.
Landed properties, such as terrace houses, semi-detached houses, and bungalows, provide more space and privacy but tend to be pricier.
Additionally, there are executive condominiums (ECs), a hybrid of public and private housing with certain eligibility conditions.
Lastly, shophouses are unique properties that combine commercial space on the ground floor with residential living spaces above.
Each type of property has its advantages, catering to different preferences and budgets of potential buyers in Singapore's diverse real estate market.
Buying or renting?
(If you're buying for yourself and not to rent out)
If Singapore is your city of choice, the decision of buying or renting a property in this thriving Asian metropolis awaits you.
Obviously, it's better to buy if you are looking to build equity and create long-term financial security.
One data can help us make a decision - the price-to-rent ratio. This metric tells us how many years of rental income it would take to pay for a property at its current price.
According to Numbeo, the property price-to-rent ratio in Singapore is around 24.69, which is around the world average.
This value shows that it would take you 25 long years of paying rents before you can own a property in Singapore. Renting for such an extended period means you wouldn't be building any equity, and you might end up spending more money without gaining ownership of the property.
Property prices in Singapore
On average, according to the last reported data from Urban Redevelopment Authority, purchasing a property in Singapore would cost you around $20,130 per square meter.
It's evident that there are significant disparities. A luxury condo near Marina Bay may have a higher price per square meter than an apartment in Bukit Timah. We actually give you a more detailed breakdown in our pack for buying property in Singapore.
To give you some context, it is only behind the property prices of Hong Kong.
Obviously, housing prices in Singapore are significantly higher (46%) than in London.
The most expensive neighbourhoods in Singapore are probably Sentosa, Orchard, and the Central Business District, while the cheapest are in the outer suburbs and industrial areas.
Trends
First and foremost, we have to acknowledge that Singapore is, today, one of the most stable countries in the world. The last Fragile State Index that has been reported for this place is 25.8.
Keep this in view when pondering the viability of buying a property in in Singapore.
Also, according to the International Monetary Fund (IMF), Singapore's economy is expected to soar by 9.9% in the coming 5 years, resulting in an average GDP growth rate of 2%.
If you intend to invest in real estate in Singapore it's a good thing because when the economy grows, people tend to become wealthier, which usually results in higher housing prices.
Also, in Singapore, the average GDP per capita has changed by 9.9% over the last 5 years. It's a solid number.
This is a strong positive signal: housing prices in Singapore might become more expensive in 2024 and later on.
Also, referring to the UBS Global Real Estate Bubble Index, the property market in Singapore is presently reasonably priced. The index stands at 0.5, which is the highest point for a fair valuation.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Singapore right now.
Buying property in Singapore
Buying real estate in Singapore can be difficult, as obtaining reliable and up-to-date information is often the most challenging part of the process. That's why we have created the pack to buy property in Singapore and in Singapore.
Buying process
Inside our pack, we've outlined the complete buying process, including a detailed breakdown of prices and yields per area, tips for negotiating the price, and information about mortgage options.
Here, we're presenting you with a more straightforward version.
This is the step-by-step process to purchase a property in Singapore:
- Research and set a budget for the property.
- Engage a licensed property agent.
- Find a suitable property and make an offer with the guidance of your agent.
- Negotiate terms and sign the Option to Purchase (OTP) with the seller.
- Pay the option fee (usually 1% of the property price) to the seller.
- Within 14 days, exercise the OTP by signing the Sales and Purchase Agreement (SPA) and pay the agreed downpayment (usually 5-10% of the property price) to the seller.
- Apply for a home loan with a bank or financial institution and get a Letter of Offer.
- Pay the Buyer's Stamp Duty (BSD) within 14 days of exercising the OTP.
- Complete the legal processes with a solicitor, who will prepare and submit necessary documents like the Transfer Form and Mortgage Deed.
- If you're a foreign buyer, obtain approval from the relevant authorities like the Land Dealings Approval Unit (LDAU).
- Pay the remaining purchase amount on the property's completion date, which is also known as the settlement date.
- Collect the keys and take possession of your new property.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Singapore.
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Where to find a property
Explore these websites to find properties in Singapore.
- Mogul - MOGUL.sg is a real estate platform simplifying property search with refined search results, AI home hunt, and business space listings.
- PropertyGuru - PropertyGuru is the leading real estate website in Singapore, offering a comprehensive selection of properties for sale, rent, and new launches.
- 99 - 99.co is a Singaporean property portal that provides a platform to search for properties for sale and rent in Singapore.
- iProperty - A Singapore-based real estate website offering property listings, news, home services, and design trends.
- SRX - SRX is Singapore's trusted property and real estate portal, offering comprehensive listings, market reports, and tools for buying, selling, and renting properties.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Singapore.
What you can get
As mentioned before, the average price per sqm in Singapore is $20,130. A 1-bedroom property with an area of 60 square meters would cost approximately $1,208,000, and a 2-bedroom with an area of 85 square meters would cost approximately $1,711,000.
However, as you can guess, property prices will differ based on the attributes of the property and its specific location.
Anticipate higher property prices in the best areas of Singapore. A villa in Orchard Road might come to around $4,890,000, but a condominium in Marina Bay could be priced at $2,140,000.
Nevertheless, there are spots that are more accommodating to your wallet. You could find a property in Woodlands for $940,000, or you may locate a property in Bukit Batok priced at $770,000.
We give more details about property types and areas in our full pack for buying property in Singapore.
Mistakes to avoid
Here are the main pitfalls when buying a property in Singapore:
- CPF limitations: The use of Central Provident Fund (CPF) for property purchases has restrictions, affecting available funds.
- Additional Buyer's Stamp Duty (ABSD): Foreigners and second-time buyers incur higher taxes on property purchases.
- Ethnic Integration Policy (EIP): Ethnic quotas can limit property choices in certain neighborhoods.
- Temporary Occupation Permit (TOP) delays: Delays in obtaining TOP can postpone property possession and rental income.
- Seller's Stamp Duty (SSD): Reselling within a short period incurs higher taxes, affecting investment returns.
- Preservation of area restrictions: Some properties may have conservation status, limiting modifications.
- Airspace restrictions: High-rise buildings near airports have height restrictions, affecting development potential.
- En-bloc risks: Collective sales may force property owners to sell, leading to uncertainties in investment continuity.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Singapore Property Pack
Living in Singapore
Living in Singapore is an excellent choice for those considering buying property, as it offers a high quality of life with a safe, vibrant and cosmopolitan environment.
Cost of living
The cost of living in Singapore is generally higher than in other countries due to its high standard of living. However, it is still a relatively affordable city compared to other major metropolitan areas.
Here are some examples to better understand the cost of living in Singapore:
- Rent for a one-bedroom apartment in the city center: $2,000-$3,000 per month.
- Monthly utilities (electricity, water, heating): $150-$200 for a standard 85m² apartment.
- Hawker center meal: $3-$6 per dish.
- Public transportation (MRT, bus): $1.50-$3 per ride.
- Groceries for a week (milk, bread, vegetables): $50-$100.
- Gasoline (1 liter): $1.50-$2.
- Gym membership: $80-$150 per month.
- Movie ticket: $10-$15.
Neighbourhoods
We like to show information in an easy-to-understand way. So, we made a table that lists all the different areas in Singapore. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Chinatown | Chinatown is a vibrant district with rich cultural heritage, offering an array of delicious food, unique shops, and historical landmarks. | Cultural attractions, diverse dining options, and excellent public transport connectivity. | Can be crowded, and property prices may be higher due to its popularity. |
Orchard | Orchard is a bustling shopping and entertainment hub, known for its upscale shopping malls, luxury hotels, and dining establishments. | World-class shopping experience, vibrant nightlife, and accessibility to various amenities. | Expensive living costs and heavy traffic congestion during peak hours. |
Tiong Bahru is a trendy neighborhood filled with hip cafes, unique boutiques, and preserved pre-war architecture. | Charming ambiance, artistic vibe, and close-knit community feel. | Some areas may lack convenient access to public transportation. | |
Marina Bay | Marina Bay is a modern and iconic area known for its futuristic architecture, waterfront promenade, and popular tourist attractions. | Breathtaking skyline views, world-class hotels, and a hub for business and leisure activities. | Can be crowded with tourists, and limited residential spaces. |
Clarke Quay | Clarke Quay is a riverside quay featuring an eclectic mix of restaurants, bars, and clubs, making it a popular nightlife destination. | Lively entertainment scene, scenic river views, and vibrant atmosphere. | Noisy during late hours, and limited parking options. |
Sentosa | Sentosa is a resort island known for its sandy beaches, family-friendly attractions, and recreational activities. | Tourist hotspot with various leisure options and beautiful resorts. | Can be expensive, limited residential offerings, and isolated from the mainland. |
Little India | Little India is a colorful and lively area, featuring traditional Indian culture, bustling markets, and a diverse culinary scene. | Authentic Indian cuisine, cultural experiences, and budget-friendly shopping. | Congested during peak hours, and limited green spaces. |
Kampong Glam | Kampong Glam is a trendy neighborhood with a rich Malay and Arab heritage, offering hip boutiques, Middle Eastern eateries, and historic landmarks. | Cultural diversity, unique shops, and a wide array of halal food options. | Parking can be challenging, and some areas may be less well-connected by public transport. |
Bugis | Bugis is a lively district with a mix of old and new, featuring shopping centers, street markets, and historic sites. | Shopping variety, cultural sites, and good accessibility to public transport. | Crowded during weekends, and limited green spaces. |
East Coast | East Coast is a residential area along the coast, offering scenic sea views, recreational parks, and a laid-back lifestyle. | Beautiful coastal scenery, cycling and jogging tracks, and a range of water sports. | Can be far from the city center, and some parts may experience occasional flooding. |
Life in Singapore
Singapore has a highly developed and successful free-market economy. It is a major exporter of electronics, financial services, and other goods and services, and is one of the world's most prosperous nations.
What expats usually like the most in Singapore is the high quality of life, with its excellent public transportation system, low crime rate (we will talk about it), and abundance of green spaces. They also enjoy the city's cosmopolitan atmosphere, with its diverse range of cultures, cuisines, and entertainment options.
An important point to note is that Singapore is an extremely safe city - the crime index is around 23, which is an exceptional score. Singapore has a culture that strongly emphasizes the value of law and order, which has resulted in almost no crime.
A good point for a property investor - Singapore has an extensive Mass Rapid Transit (MRT) system.
Access to healthcare in Singapore is excellent, with a Healthcare Index of 71. A strong healthcare system and infrastructure will always make a place more attractive, which is positive for real estate.
Finally, it is worth noting that Singapore has two world-class universities: the National University of Singapore (top 20) and the Nanyang Technological University (top 50).
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Renting out in Singapore
This section is for those who are looking to purchase a property not to live in themselves, but to rent it out and make an income from the rental.
Long-term
Tenant Profiles in Singapore
According to the data reported by Wikipedia, the home ownership rate in Singapore is 88%, which is rather high.
But there is still a huge pool of expats who are looking for places to rent.
If you decide to buy and rent out to long-term tenants, you should target young professionals, expats, students, and families in Singapore. For short-term tenants, you should target tourists, business travelers, and digital nomads.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Condo in Orchard Road | Professionals, expats | Central living, luxury amenities | $2,000 - $5,000 |
HDB Flat in Tampines | Families, working professionals | Suburban comfort, accessibility | $1,000 - $2,500 |
Studio in Bugis | Students, young professionals | Urban vibe, cultural scene | $800 - $1,500 |
Luxury Apartment in Marina Bay | High-income expats, executives | Waterfront living, prestige | $3,000 - $8,000 |
2-Bedroom Condo in Bukit Timah | Families, expats | Green surroundings, exclusivity | $2,000 - $4,500 |
High-rise Apartment in Novena | Urban dwellers, medical professionals | Medical hub, convenience | $1,500 - $3,000 |
1-Bedroom Apartment in Chinatown | Singles, young couples | Cultural experience, affordability | $1,000 - $2,000 |
Rental yields
Nowadays, rental yields in Singapore are usually below 5%. It's not much. A good rental yield generally falls within the range of 7% or more.
Properties located in the heart of the city and near popular public transportation hubs tend to give the best rental yields in Singapore due to the high demand for housing in these locations. Additionally, properties that are well-maintained and have modern amenities tend to attract more tenants and command higher rental rates.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Finally, be aware that rental incomes in Singapore are taxed at 22%, which is not bad.
Short-term
You could also decide to rent short-term to international students, expats, and business travelers in Singapore. Tourists and holiday makers are also potential tenants for short-term rental in Singapore.
If you decide to go with that option, look for properties in the Central Business District, such as Orchard Road and Bugis, or in the Marina Bay area, such as Marina Bay Financial Centre and the Downtown Core.
Currently, there are approximately 2,720 active Airbnb listings in Singapore, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $173, which is quite high.
You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Singapore can make around $1600 per month. Also, the average occupancy rate is estimated at 71%.
Is it worth buying real estate in Singapore then?
Buying property in Singapore can be a wise decision if you're planning to settle down in the city for the long term or if you're looking for a stable investment opportunity.
Singapore offers a high quality of life, a safe and well-connected environment, and a strong economy. Owning property can provide stability, equity-building, and the potential for property value appreciation in the future. For investors, Singapore's property market can be appealing, given its stability, low crime rate, and robust infrastructure.
The country's positive GDP growth projections and relatively reasonable property valuations, as indicated by the UBS Global Real Estate Bubble Index, suggest potential for long-term financial gains.
On the flip side, if you're a short-term resident or have a limited budget, buying property in Singapore may not be the best choice. The high property prices in prime areas can be prohibitive, and the costs associated with purchasing and selling property, including stamp duties and legal fees, can outweigh the benefits for those who plan to leave Singapore relatively soon. Additionally, foreign buyers face hurdles like the Additional Buyer's Stamp Duty (ABSD) and restrictions on property types, which can substantially increase the overall expense of property ownership.
Moreover, market fluctuations, although historically stable, are a potential risk, and buyers should be prepared for the possibility of property prices not always heading upwards. In essence, buying property in Singapore is a decision that should be carefully tailored to your specific circumstances and objectives, taking into account factors such as your residency plans, financial capabilities, and investment goals.
Make sure you understand the real estate market in Singapore
Don't rush into buying the wrong property in Singapore. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.