Is it worth it buying property in Singapore in 2025?

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

Everything you need to know before buying real estate is included in our Singapore Property Pack

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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.

What kinds of properties are available in Singapore in 2025, and who are they suited for?

Singapore's property market offers six main categories, each targeting specific buyer profiles and needs.

HDB flats represent the most affordable option, designed exclusively for Singaporean citizens and permanent residents. These government-built units range from 2-room to 5-room configurations, with prices typically between $300,000 to $800,000. They come with strict eligibility requirements including income ceilings, minimum occupation periods, and citizenship status verification.

Executive Condominiums (ECs) serve as a bridge between public and private housing. These hybrid developments offer full condominium amenities but maintain initial eligibility restrictions similar to HDB flats. ECs are ideal for rising middle-class families with household incomes up to $16,000 monthly. After 10 years, they convert to fully private status, potentially increasing in value.

Private condominiums dominate the mid to high-end market, appealing to higher-income locals, permanent residents, and foreign buyers. These developments typically feature swimming pools, gyms, security services, and prime locations. Prices range from $1 million to $5 million depending on location and unit size. They offer the most flexibility in terms of ownership and rental options.

Landed properties including terrace houses, semi-detached homes, and bungalows provide maximum space and privacy. However, foreign ownership is heavily restricted, making them primarily accessible to Singaporean citizens. These properties start around $2 million and can exceed $20 million for luxury bungalows in prime districts.

Is it generally better to buy or to rent a property in Singapore today?

The buy versus rent decision in Singapore depends heavily on your citizenship status, financial situation, and long-term plans.

For Singaporean citizens and permanent residents, buying often makes financial sense due to government support systems. Citizens can access housing grants, use CPF savings for down payments, and qualify for HDB loans with favorable interest rates. The ability to leverage CPF funds effectively reduces the cash outlay required for property purchases.

Foreigners face a different calculation due to the Additional Buyer's Stamp Duty (ABSD) of 60% on residential properties as of September 2025. This substantial upfront cost, combined with limited financing options and higher interest rates, makes renting more attractive for shorter stays. Additionally, foreigners cannot purchase HDB flats or landed properties, limiting their options to private condominiums.

From a purely financial perspective, rental yields in Singapore average 2-4% annually for private properties. When factoring in ABSD, legal fees, stamp duties, and ongoing maintenance costs, the break-even period for foreign buyers often extends beyond 10-15 years. For stays shorter than 5 years, renting typically provides better financial flexibility and lower overall costs.

It's something we develop in our Singapore property pack.

How have property prices evolved over the past few years, what are they like now, and what's the forecast for the next couple of years?

Singapore property prices have experienced significant growth over the past five years, with private residential prices rising approximately 32% since 2020.

The Urban Redevelopment Authority (URA) price index reached 213.2 points in Q2 2025, representing a 3.9% increase compared to 2024. Non-landed private properties have generally outperformed landed properties during this period, driven by strong demand from upgraders and foreign buyers in the luxury segment.

Current market conditions as of September 2025 show continued price appreciation, particularly in suburban areas outside the Core Central Region (CCR). The Rest of Central Region (RCR) and Outside Central Region (OCR) have seen the strongest growth, with new launches driving demand and price increases of 4-6% annually in these areas.

Looking ahead to 2026-2027, industry experts forecast continued but moderated price growth of 2-4% per year. Several factors support this outlook: controlled supply through government land sales, stable economic conditions, and continued foreign investment despite ABSD measures. However, the pace of growth is expected to slow compared to the rapid increases seen in 2020-2023.

The government's cooling measures, including ABSD and Total Debt Servicing Ratio (TDSR) requirements, have helped maintain market stability and prevent speculative bubbles. These regulatory frameworks are likely to remain in place, supporting steady rather than explosive price growth.

What are the key real estate market trends in Singapore right now that buyers should pay attention to?

Several significant trends are shaping Singapore's property market in 2025, offering both opportunities and challenges for buyers.

The suburban shift represents the most notable trend, with increasing demand for properties in the RCR and OCR areas. Buyers are seeking better value propositions outside the prime central districts, driven by affordability concerns and the appeal of newer developments with modern amenities. This trend has resulted in stronger price growth in suburban areas compared to prime central locations.

Sustainability and smart technology integration have become key selling points for new developments. Green-certified buildings with energy-efficient systems and smart home features command premium prices and attract environmentally conscious buyers. Developers are increasingly incorporating these features to differentiate their projects in a competitive market.

The rental market has tightened significantly, with limited supply particularly affecting larger HDB flats and suburban condominiums. This supply-demand imbalance has kept rental rates resilient, supporting investment yields for property owners. The trend is expected to continue as immigration policies and economic growth drive housing demand.

Foreign investment patterns have evolved, with buyers focusing increasingly on luxury and branded residences in prime locations. Despite higher ABSD rates, wealthy international buyers continue to view Singapore as a stable investment destination, particularly for properties above $5 million.

Government policies continue to shape market dynamics through land supply management, cooling measures, and housing grants. The Build-To-Order (BTO) system for HDB flats and selective land sales for private developments help maintain controlled supply growth and price stability.

How exactly does the buying process work in Singapore, step by step?

The property buying process in Singapore follows a structured sequence designed to protect both buyers and sellers while ensuring regulatory compliance.

Step 1 involves clarifying your eligibility and financing options based on citizenship status, income level, and existing property ownership. Citizens and PRs must check their CPF eligibility and grant entitlements, while foreigners need to understand ABSD implications and financing restrictions.

Step 2 requires setting a realistic budget and obtaining in-principle loan approval from banks or HDB. This step helps determine your actual purchasing power and strengthens your negotiating position with sellers. Most lenders require income documentation, credit checks, and property valuation reports.

Step 3 encompasses property search and shortlisting through online platforms, real estate agencies, or developer showrooms. Professional agents can provide market insights, arrange viewings, and assist with price negotiations based on comparable sales data.

Step 4 involves viewing properties and negotiating terms with sellers or developers. This includes discussing price, settlement dates, included fixtures, and any special conditions. For new launches, buyers may need to participate in balloting or priority booking systems.

Step 5 requires securing an Option to Purchase (OTP) with a 1% deposit for resale properties or booking fee for new developments. The OTP provides exclusive rights to purchase the property within a specified timeframe, typically 2-3 weeks for resale properties.

Step 6 encompasses exercising the option, arranging final financing, and completing legal documentation. This includes paying the Buyer's Stamp Duty, arranging property insurance, and finalizing mortgage terms with your chosen lender.

Step 7 involves the completion process, including final inspections, key collection, and transfer of ownership. For new developments, this occurs upon obtaining the Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC).

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Where can you actually find a property—through which real estate agencies, online platforms, or networks?

Singapore's property search ecosystem combines established online platforms, professional agencies, and developer networks to serve different buyer needs and preferences.

Major online portals dominate the initial search process, with PropertyGuru, 99.co, and SRX serving as the primary platforms for both new and resale properties. These platforms offer comprehensive search filters, price comparison tools, and market trend analysis. EdgeProp provides additional market insights and investment analysis tools for serious buyers.

Established real estate agencies offer professional services and market expertise, with ERA, PropNex, OrangeTee, and Huttons leading the mass market segment. For luxury properties and international clients, Knight Frank, Savills, and Cushman & Wakefield provide specialized services including investment advisory and property management.

Developer sales offices and showflats provide direct access to new launches and off-plan purchases. Major developers like CapitaLand, City Developments Limited (CDL), and GuocoLand maintain dedicated sales teams and priority booking systems for new projects. These channels often offer early bird discounts and flexible payment schemes.

Personal networks and specialized relocation services cater particularly to expatriate buyers. International relocation companies often maintain partnerships with local agents and can provide comprehensive services including school searches, area orientation, and temporary accommodation.

Government channels serve specific segments, with HDB providing resale flat listings and new BTO launch information for eligible buyers. The Sales of Balance Flats (SBF) scheme offers immediate availability for certain HDB units.

For different budget levels, what kinds of properties can someone expect to afford in Singapore?

What are the main mistakes to avoid when buying property in Singapore?

Singapore property buyers commonly make several critical errors that can result in financial losses or legal complications.

Budget overextension ranks as the most frequent mistake, with buyers failing to account for the Total Debt Servicing Ratio (TDSR) requirements and additional costs. The TDSR limits total monthly debt payments to 60% of gross income, while buyers often overlook legal fees, stamp duties, renovation costs, and ongoing maintenance expenses that can add 10-15% to the purchase price.

Eligibility and restriction misunderstandings create significant problems, particularly for HDB and EC purchases. Buyers may not realize income ceilings, citizenship requirements, or resale restrictions that apply to these property types. Foreign buyers sometimes fail to understand ABSD implications or restrictions on landed property ownership.

Inadequate due diligence represents another common pitfall, with buyers failing to research comparable sales, future development plans, or potential issues with the property or developer. This includes not checking the developer's track record, understanding the lease terms, or investigating potential noise or view obstructions from future developments.

Rushed decision-making often leads to poor choices, especially during new launch events where high-pressure sales tactics and limited time create urgency. Buyers should always take time to evaluate multiple options, understand all terms and conditions, and seek independent legal advice before committing.

Financing assumptions can prove costly when buyers don't shop around for mortgage rates or understand the full cost of borrowing. Interest rate differences of even 0.1% can amount to significant savings over a 20-30 year loan period.

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 is the overall cost of living in Singapore, and how does it tie into property ownership?

Singapore consistently ranks among the world's most expensive cities, with property ownership representing a significant component of overall living costs.

Housing costs typically consume 25-40% of household income for property owners, including mortgage payments, property taxes, maintenance fees, and utilities. For a typical private condominium, monthly maintenance fees range from $200-800 depending on facilities and unit size, while property taxes average 0.16% of annual value for owner-occupied residential properties.

Transportation costs benefit from Singapore's excellent public transport system, with monthly passes costing around $120-150. However, car ownership remains expensive due to Certificate of Entitlement (COE) costs exceeding $100,000 as of September 2025, plus insurance, parking, and fuel expenses.

Daily living expenses including food, utilities, and entertainment vary significantly based on lifestyle choices. Local hawker centers offer affordable meals from $3-8, while expatriate dining preferences can increase food costs to $1,500-3,000 monthly for a family. Utilities typically cost $150-300 monthly depending on usage and unit size.

Education costs add substantial expenses for expatriate families, with international schools charging $20,000-40,000 annually per child. Healthcare costs remain moderate due to government subsidies for residents and comprehensive insurance coverage options.

Property ownership can provide some cost mitigation through rental income if you rent out spare rooms or invest in multiple properties. However, the high upfront costs and ongoing expenses mean property ownership often increases rather than decreases overall living costs in the short term.

Which are the best areas to buy in—affordable, up-and-coming, and upscale—and what are the strengths and weaknesses of each?

What is life really like as an expat in Singapore, especially in terms of housing and lifestyle?

Expatriate life in Singapore centers around convenience, safety, and cultural diversity, with housing choices significantly impacting the overall experience.

Most expatriates rent private condominiums or serviced apartments in central or city-fringe areas for proximity to international schools, business districts, and expatriate communities. Popular expat enclaves include Holland Village, East Coast, Orchard, and River Valley, where English is predominantly spoken and Western amenities are readily available.

Housing quality meets international standards with modern fixtures, reliable utilities, and comprehensive building management. Most expatriate-preferred developments include swimming pools, gyms, tennis courts, and children's playgrounds. The tropical climate makes air conditioning essential, typically adding $200-400 to monthly utility bills.

Social integration varies significantly based on workplace environment, children's school choices, and personal effort to engage with local culture. The expatriate community is well-established with numerous clubs, associations, and networking groups facilitating connections and support systems.

Language barriers are minimal as English serves as the primary business and administrative language. However, cultural adaptation requires understanding local customs, particularly in diverse neighborhoods where Malay, Chinese, and Indian communities maintain distinct traditions.

Transportation convenience allows most expatriates to live comfortably without car ownership, though many choose to purchase vehicles for weekend recreation and family convenience. The efficient MRT system connects most residential areas to business districts within 30-45 minutes.

It's something we develop in our Singapore property pack.

If you rent out your property long-term, which areas should you target, what types of tenants are you likely to attract, what do they look for, and how much rental income or yield can you expect?

Long-term rental success in Singapore depends heavily on location selection, tenant targeting, and property positioning to meet specific market demands.

Prime rental areas include CBD fringe locations like River Valley, Tiong Bahru, and Clarke Quay for professional tenants seeking convenience to financial districts. Expatriate family areas such as Holland Village, East Coast, and Bukit Timah attract higher-paying tenants with children attending international schools. Suburban developments in Punggol, Sengkang, and Jurong appeal to local families and working professionals seeking value and modern amenities.

Typical tenant profiles include expatriate professionals and families on corporate packages, local professionals and young couples, permanent residents upgrading from HDB housing, and international students in university areas. Each segment has distinct preferences and budget ranges that influence rental potential.

Professional tenants prioritize proximity to MRT stations, modern fixtures and appliances, high-speed internet connectivity, and building amenities like gyms and pools. Expatriate families additionally seek proximity to international schools, Western dining options, and recreational facilities. Local tenants often focus on value for money, reliable transportation links, and nearby hawker centers and shopping malls.

Rental yields typically range from 2-3% gross for prime central properties, 3-4% for suburban developments, and 2.5-3.5% for expatriate-focused areas. Higher yields often correlate with smaller units or properties requiring more active management. Factors affecting yield include property age, amenities, location convenience, and target tenant demographic.

Market rental rates vary significantly by location and property type, with 2-bedroom condos ranging from $3,000-6,000 monthly in prime areas and $2,200-4,000 in suburban locations. Larger 3-4 bedroom units command $4,500-10,000 monthly depending on location and luxury level.

If you rent out short-term, which areas make sense, what are the tenant profiles and expectations, how much can you earn, and what regulations do you need to follow?

Short-term rental operations in Singapore face strict regulatory constraints that significantly limit opportunities compared to other major cities.

Regulatory restrictions prohibit short-term rentals of less than three months in private residential properties and all HDB flats unless specifically licensed for hotel use. The Urban Redevelopment Authority (URA) enforces these rules with substantial penalties including fines up to $200,000 and potential criminal charges for violations.

Legal short-term accommodation primarily exists through licensed serviced apartments, hotels, and specific commercial developments zoned for tourist accommodation. These properties cluster in tourist and business districts including Orchard Road, Marina Bay, Clarke Quay, and Sentosa where demand from business travelers and tourists remains consistent.

Target tenant profiles for legal short-term stays include business travelers attending conferences or meetings, medical tourists seeking specialized treatments, expatriates in relocation transitions, and high-end leisure tourists preferring apartment-style accommodation over hotels. These segments typically seek premium locations with hotel-like services and amenities.

Potential earnings for legal short-term operations can be higher than long-term rentals, with nightly rates ranging from $150-500 depending on location and property quality. However, operational costs including cleaning, management, marketing, and licensing fees significantly impact net returns. Occupancy rates vary seasonally and depend heavily on marketing effectiveness and property positioning.

Compliance requirements include obtaining proper licenses from URA, meeting fire safety standards, maintaining insurance coverage, and paying appropriate taxes on rental income. Violation of short-term rental regulations can result in forced sale orders and significant legal penalties.

So with all that in mind, is it actually worth buying property in Singapore in 2025—for living in, for renting out, or for buying and selling later at a higher price?

The worthiness of buying Singapore property in 2025 depends entirely on your specific circumstances, investment timeline, and financial objectives.

For long-term owner-occupiers who are Singaporean citizens or permanent residents, buying remains highly attractive due to government support systems, forced savings through CPF contributions, and steady capital appreciation. The ability to use CPF funds for down payments and mortgage servicing, combined with housing grants and favorable loan terms, creates compelling value propositions for eligible buyers planning to stay 5+ years.

Investment buyers face a more complex calculation, particularly foreign nationals subject to 60% ABSD rates. While rental yields of 2-4% appear modest, they provide steady cash flow in a stable regulatory environment. Capital appreciation potential of 2-4% annually, combined with rental income, can generate reasonable total returns for patient investors with 10+ year holding periods.

Short-term speculation is generally not advisable due to high transaction costs, substantial stamp duties, and moderate price growth expectations. The combination of ABSD, legal fees, and other transaction costs can exceed 15-20% of property value, requiring significant price appreciation just to break even on quick turnovers.

Location and property type selection remain crucial regardless of investment purpose. Suburban developments offer better value and growth potential compared to prime central properties, while new launches often provide better specifications and potential appreciation compared to older resale units.

Market timing considerations favor buyers who can commit to long-term ownership, as government cooling measures have created a stable rather than speculative environment. The regulated supply through land sales and controlled development ensures steady rather than explosive growth, benefiting long-term wealth building over short-term gains.

It's something we develop in our Singapore property pack.

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. Singapore Global Network
2. Home Journey Singapore
3. SingSaver
4. Global Property Guide
5. PLB Insights
6. DBS Bank
7. Maxthon Blog
8. Trading Economics
9. Darren Ong Blog
10. Property Buying Guide Singapore