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Singapore's property market is showing resilient growth despite global economic uncertainties.
Private residential prices have averaged 5-6% annual increases over the past five years, while supply constraints continue to support price appreciation. With new completions falling below the 10-year average and strong household formation, the market outlook remains positive for both investors and buyers looking to relocate.
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Singapore's private residential prices have grown 5-6% annually over five years, with HDB resale prices showing similar or higher growth rates. Supply shortages are expected to continue supporting price appreciation through 2025-2026.
New private housing completions are projected at only 5,300 units in 2025 and 7,600 units in 2026, well below the 10-year average of 12,000 units annually.
| Metric | 2025 Forecast | 2026 Forecast |
|---|---|---|
| Private Residential Price Growth | 3-4% | 4-5% |
| HDB Resale Price Growth | 7-8% | 5-6% |
| New Private Units Completed | 5,300 | 7,600 |
| Rental Growth (Private) | 2-3% | 3-4% |
| Transaction Volume Change | -5% to +5% | +5% to +10% |
| Mortgage Interest Rates | 3.5-4.5% | 3.8-4.8% |
| Foreign Buyer Share | 8-12% | 10-14% |
What has been the average year-on-year price growth for private residential properties versus HDB resale flats over the past 5 years?
Singapore's private residential properties have delivered consistent annual price growth averaging 5-6% over the past five years.
The price trajectory shows private residential properties gained 10.6% in 2021, 8.6% in 2022, 6.8% in 2023, 3.9% in 2024, and 3.3% in 2025. This represents a cooling trend from the post-pandemic highs but still maintains positive growth momentum.
HDB resale prices have shown more volatile but often stronger percentage gains. The HDB market recorded 12.7% growth in 2021, 10.4% in 2022, 4.9% in 2023, 9.7% in 2024, and 7.3% in 2025. The HDB segment has consistently matched or exceeded private property price appreciation in most years.
The comparison reveals that HDB resale flats have outperformed private condominiums in terms of percentage price growth during strong demand years, particularly benefiting from supply constraints and government policies supporting public housing accessibility.
| Year | Private Residential (%) | HDB Resale (%) |
|---|---|---|
| 2021 | +10.6% | +12.7% |
| 2022 | +8.6% | +10.4% |
| 2023 | +6.8% | +4.9% |
| 2024 | +3.9% | +9.7% |
| 2025 | +3.3% | +7.3% |
How many new housing units are expected to complete in 2025 and 2026 compared to the 10-year average?
Singapore faces a significant supply shortage with new private residential completions projected well below historical averages.
Private residential developments are expected to deliver approximately 5,300 units in 2025 and 7,600 units in 2026. These completion figures fall substantially short of the 10-year average of 12,000 units annually.
HDB flat supply shows a different pattern with the government planning to launch over 50,000 BTO flats between 2025-2027. This translates to roughly 16,667 annual completions, slightly above the recent 10-year average of 15,000 units per year.
The supply constraints in the private market are expected to continue supporting price appreciation, while HDB supply increases should help moderate public housing price growth. The gap between private supply and demand remains a key driver of market dynamics.
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What are the current vacancy rates for private condominiums and how have they changed?
Private condominium vacancy rates in Singapore remain at historically low levels as of September 2025.
The vacancy rate for private condominiums currently stands at approximately 5.8%, representing a slight decrease from 6.1% recorded in the previous year. This decline indicates continued strong demand for rental properties despite economic uncertainties.
Landed property vacancy rates are even tighter at around 4.2%, down from 4.8% last year. The premium segment shows particularly strong occupancy rates due to limited supply of high-end landed homes.
The low vacancy environment supports rental growth and makes Singapore's private residential market attractive for investors seeking steady rental income. Regional demand from expatriate professionals continues to underpin occupancy levels.
How much have rental prices increased for condominiums and HDB flats over the past 12 months?
Singapore's rental market has experienced moderate growth with private condominium rents increasing by approximately 3-4% over the past 12 months.
Private condominium rental rates have risen steadily, with prime district properties showing stronger growth of 4-5% while non-prime areas averaged 2-3% increases. The rental growth reflects ongoing demand from expatriate professionals and local upgraders.
HDB rental rates have increased more modestly at around 2-3% annually, supported by government policies that maintain affordability while allowing market-based adjustments. The HDB rental market benefits from consistent local demand and serves as an entry point for many residents.
Rental yield compression has occurred as property prices have grown faster than rents, with typical gross rental yields for private condominiums now ranging from 2.8% to 3.5% depending on location and property type.
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What is the current price per square foot for new launches versus resale condominiums?
Singapore's new launch condominiums command a significant premium over resale properties as of September 2025.
The median price per square foot for new launch condominiums currently averages S$1,650-1,850 for non-prime areas and S$2,200-2,800 for prime districts. These prices represent increases of 15-20% compared to three years ago when new launches averaged S$1,400-1,550 and S$1,900-2,300 respectively.
Resale condominiums trade at more moderate levels, with median prices of S$1,350-1,550 per square foot in non-prime areas and S$1,800-2,400 in prime districts. The resale market has seen 12-15% appreciation over the same three-year period.
The price gap between new launches and resale properties has widened from approximately S$200-250 per square foot three years ago to S$300-400 per square foot currently. This reflects developers' ability to command premiums for new developments with modern amenities and fresh designs.
Location remains the primary price determinant, with Core Central Region properties maintaining the highest premiums regardless of whether they are new launches or resale units.
How has transaction volume changed over the last four quarters?
Singapore's private residential transaction volumes have shown resilience despite cooling measures and economic headwinds.
New launch sales totaled approximately 3,200 units in Q3 2025, compared to 2,800 units in Q3 2024, representing a 14% increase year-on-year. The four-quarter rolling total for new launches stands at about 11,500 units, slightly below the previous year's 12,200 units.
Resale transaction volumes have remained more stable with approximately 5,800 units sold in Q3 2025 versus 6,100 units in Q3 2024. The annual resale volume is tracking toward 23,000-24,000 transactions, consistent with recent historical averages.
Total transaction activity combining new launches and resales suggests the market maintains healthy liquidity levels. Foreign buyer activity has increased selectively in certain segments, contributing to overall transaction stability.
The transaction patterns indicate buyers remain active despite higher interest rates, with demand supported by Singapore's economic fundamentals and limited supply availability.
What are current mortgage interest rates and how have they changed?
Singapore mortgage interest rates have stabilized in a higher range following global monetary tightening cycles.
Current mortgage rates for private properties range from 3.5% to 4.5% for floating rate packages, representing an increase of 1.5 to 2.0 percentage points compared to two years ago when rates averaged 1.8% to 2.8%. Fixed rate options are available at 3.8% to 5.2% depending on the lock-in period.
HDB concessionary rates for eligible buyers remain more attractive at 2.6% currently, though this has also increased from the historical low of 0.1% during the ultra-low rate environment. The rate differential continues to support HDB affordability for Singaporean citizens.
The higher interest rate environment has impacted affordability calculations, with debt service ratios requiring more careful consideration. Banks have maintained lending standards while adjusting pricing to reflect the higher cost of funding.
Rate expectations suggest mortgage costs will remain elevated compared to the 2020-2022 period, though potential policy adjustments could provide some relief if economic conditions warrant easing measures.
How does household income growth compare with property price growth over the past 3 years?
Singapore household income growth has lagged behind property price appreciation, creating affordability pressures for some buyer segments.
Average household income has grown approximately 4-5% annually over the past three years, supported by economic recovery and wage adjustments across various sectors. Professional services and technology sectors have seen stronger income growth of 6-8% annually.
Private residential property prices have increased at a faster pace, averaging 6-8% annually over the same period. This has resulted in a widening gap between income growth and property costs, particularly affecting first-time buyers and those seeking to upgrade.
The income-to-property price ratio has deteriorated modestly, though Singapore's strong economic fundamentals and employment stability help maintain buyer confidence. Government policies continue to support affordability through various housing schemes and grants.
Regional income comparisons show Singapore households maintain relatively strong purchasing power, though the property premium versus neighboring countries has increased. The city-state's quality of life and economic opportunities continue to justify higher property costs for many buyers.
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What percentage of recent buyers have been foreign purchasers versus locals?
Foreign buyer activity in Singapore's private residential market has remained selective but significant over the past 12 months.
Foreign purchasers accounted for approximately 8-12% of private residential transactions in the past year, with higher concentrations in premium segments and new launch developments. The percentage varies by quarter depending on project launches and market conditions.
Singaporean citizens and permanent residents continue to dominate the market at 88-92% of total transactions. Citizens benefit from stamp duty advantages and access to both private and public housing options, while PRs face some restrictions but remain active buyers.
The foreign buyer segment shows preference for prime district properties, with 15-20% of Core Central Region transactions involving non-resident buyers. This concentration reflects the luxury market's appeal to international investors and wealthy individuals.
1. **Chinese nationals**: 25-30% of foreign buyers2. **Malaysian citizens**: 20-25% of foreign buyers3. **Indonesian buyers**: 15-20% of foreign buyers4. **Indian nationals**: 10-15% of foreign buyers5. **Other nationalities**: 15-25% combinedIt's something we develop in our Singapore property pack.
How have government cooling measures affected property price growth since 2018?
Singapore's property cooling measures have successfully moderated price growth while maintaining market stability since their implementation.
The Additional Buyer's Stamp Duty (ABSD) increases and tighter loan-to-value limits introduced since 2018 have reduced the annual price growth rate from peak levels of 15-20% in earlier cycles to the current 3-8% range. The measures have particularly impacted speculative activity and rapid price escalation.
Transaction volumes have stabilized at sustainable levels rather than experiencing boom-bust cycles. Foreign buyer activity has decreased from historical highs of 15-20% to the current 8-12% range, reducing external demand pressures.
The Total Debt Servicing Ratio (TDSR) framework has maintained financial prudence by ensuring buyers can service their debt obligations even in stressed scenarios. This has prevented excessive leverage and supported long-term market stability.
| Measure | Implementation | Market Impact |
|---|---|---|
| ABSD Increase | 2018-2023 | -30% foreign buyer volume |
| LTV Tightening | 2021 | -15% speculative transactions |
| TDSR Framework | Enhanced 2019 | Improved loan quality |
| Supply Measures | 2020-2023 | +25% BTO launches |
| Rental Controls | 2022 | Rental growth moderation |
What are the GDP and population growth forecasts for Singapore and their impact on property demand?
Singapore's economic and demographic projections support continued property demand growth over the next 2-3 years.
GDP growth is forecasted at 2.5-3.5% annually for 2025-2027, driven by technology sector expansion, financial services growth, and regional trade hub activities. The economic resilience supports employment growth and household formation, which directly translates to housing demand.
Population growth is projected at 1.0-1.5% annually, with targeted increases in skilled worker immigration and natural demographic changes. The government's population planning aims to reach 6.9 million residents by 2030, creating sustained demand for both private and public housing.
Historical correlation analysis shows that every 1% of GDP growth typically generates 1.2-1.5% increase in property demand, while population growth of 1% correlates with 2-2.5% additional housing unit demand. These relationships suggest continued upward pressure on property prices.
The economic diversification strategy reduces dependence on any single sector while maintaining Singapore's attractiveness to international businesses and talent. This economic stability provides confidence for long-term property investment decisions.
What do analysts project for property price growth in 2025-2026 across market segments?
Property market analysts forecast continued but moderated price growth across Singapore's residential segments for 2025-2026.
Private residential properties are projected to appreciate 3-4% in 2025 and 4-5% in 2026, supported by supply constraints and economic stability. The mass-market segment is expected to outperform with 4-6% annual growth due to strong local demand and limited supply.
Mid-tier properties targeting the middle-income segment are forecast to grow 3-5% annually, benefiting from upgrader demand and steady expatriate rental interest. This segment offers good value relative to luxury properties while maintaining quality locations and amenities.
Luxury segment growth is projected at 2-4% annually, with performance dependent on high-net-worth individual migration and global economic conditions. The luxury market faces some headwinds from higher carrying costs and selective buyer behavior.
1. **Mass-market condominiums**: 4-6% annual growth2. **Mid-tier developments**: 3-5% annual growth 3. **Luxury properties**: 2-4% annual growth4. **Landed homes**: 3-5% annual growth5. **Prime district units**: 2-4% annual growthHDB resale prices are expected to moderate to 5-7% growth in 2025 and 3-5% in 2026 as increased supply helps balance the market. The government's commitment to housing affordability will continue supporting this segment.
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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 forecast shows resilient fundamentals with continued price growth expected through 2026, though at more moderate rates than recent peak years.
Supply constraints, particularly in the private residential segment, will continue supporting price appreciation while government measures maintain market stability and affordability for local buyers.
Sources
- Global Property Guide - Singapore Price History
- Smart Wealth - Singapore Housing Cost Statistics
- 99.co - HDB Resale Prices
- SRX Price Index
- Darren Ong - Singapore Property Market Outlook 2025
- Real Estate Asia - Singapore Private Residential Supply
- SG Luxury Condo - Supply Demand Housing Singapore
- Channel News Asia - HDB and Private Housing Supply