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
Are you considering investing in Singapore's real estate market by 2025? Curious about the trends that could shape property values and availability? Wondering how economic shifts might impact your buying decision?
We will lay down recent insights, providing you with a clear picture of the future landscape. Here, no guesswork, we rely only on solid data to guide your investment choices.
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
1) Mass-market residential property prices will grow slower than other segments due to affordability concerns
In Singapore, mass-market residential properties are seeing slower price growth compared to other segments.
This trend is largely due to the government's cooling measures from April 2023, which increased the Additional Buyer’s Stamp Duty (ABSD). These measures have made it more expensive to buy additional properties, especially affecting the mass-market segment where buyers are more price-sensitive.
Rising household debt is another factor. While household income has grown, the increase has been marginal for lower-income households, who are the primary buyers in this segment. This has led to higher debt levels, making it difficult for these buyers to afford new properties. Additionally, mortgage rates have hit a 22-year high, impacting affordability and making it challenging for potential buyers to secure loans.
Consumer surveys consistently show that affordability is a major concern for homebuyers. High mortgage rates and elevated home prices have suppressed housing activity, particularly in the mass-market segment. Historical data shows that during economic downturns, mass-market segments experience slower price growth, as seen during the COVID-19 pandemic when average household income declined.
In the mass-market segment, affordability concerns are more pronounced due to the combination of high mortgage rates and stagnant income growth. This has made properties less accessible to lower-income earners, further slowing price growth.
Overall, these factors contribute to the slower price growth in the mass-market residential properties, as affordability remains a significant barrier for many potential buyers.
Sources: Channel News Asia, DollarBack Mortgage, Stacked Homes, Norada Real Estate
2) Foreign buyers will flock to Singapore's residential market for its political stability and strong economy
Foreign buyers are showing increased interest in Singapore's residential market due to its political stability and strong economic fundamentals.
In recent years, especially in 2023 and 2024, there has been a noticeable uptick in foreign ownership of condominiums, with Chinese buyers leading the charge. This trend is particularly evident in the Core Central Region, where foreign purchases jumped by 24% in the second quarter of 2024.
The surge in property transactions involving foreign buyers is another key factor. In the first half of 2024, transaction volumes rose by 36.1% compared to late 2023. This suggests that foreign investors are regaining confidence in Singapore's luxury real estate market, despite previous cooling measures. Singapore's status as a hub for foreign wealth, especially among Indian investors, further boosts this confidence.
Singapore's economic resilience is a major draw for foreign buyers. The economy is projected to grow by 3.5% in 2024, driven by strong manufacturing and trade-related services. This economic strength makes Singapore an attractive destination for foreign direct investment, which in turn supports economic stability and enhances the confidence of foreign buyers in the real estate market.
Foreign investors are particularly drawn to Singapore's luxury real estate, seeing it as a safe and profitable investment. The country's robust economic growth and political stability provide a secure environment for these investments, making it a preferred choice for those looking to diversify their portfolios.
Sources: SGLuxuryHomes, World Bank, Source of Asia
Everything you need to know is included in our Real Estate Pack for Singapore
3) Stricter regulations on short-term rentals will reduce profitability for properties on platforms like Airbnb
Stricter regulations on short-term rentals are making it tougher for property owners to profit from platforms like Airbnb.
In Singapore, the Urban Redevelopment Authority (URA) has set some pretty firm rules. They require a minimum stay of three months for rentals and cap short stays at 90 days a year. This means property owners can't rent out their places as often, which cuts into their potential earnings.
On top of that, the URA is serious about enforcing these rules. Since 2019, 86 people have been fined, with penalties reaching up to $5,000. This adds a layer of financial risk, making short-term rentals less appealing and less profitable for owners.
Homeowners are also losing interest in short-term rentals. A URA survey found that only seven percent of respondents were open to leasing their properties for short stays. This shows how the regulatory climate is discouraging investment in such properties.
This isn't just a Singapore issue. Cities like New York and Barcelona have similar regulations, which have also reduced profitability for short-term rental properties. It's a trend that's reshaping the market globally.
Sources: The Independent, Channel News Asia, Touch Stay, URA
4) An aging population will drive demand for retirement-friendly housing and senior living communities
Singapore's population is getting older, with 19.9% of residents aged 65 and above by 2024.
People are living longer thanks to better healthcare, which means more seniors need suitable housing. The government is on it, rolling out plans like the Action Plan for Successful Ageing to improve senior living.
Real estate is catching up too. Take Kampung Admiralty, for example, where homes come with healthcare and retail facilities right on site. It's a model for senior-friendly living.
The Housing and Development Board is also stepping up with Community Care Apartments, designed to support the unique needs of older residents. This shows a clear shift towards retirement-friendly housing.
These changes are not just about homes; they're about creating communities where seniors can thrive. Integrated living spaces are becoming the norm, blending convenience with care.
As the demand grows, expect more innovative housing solutions to pop up, making it easier for seniors to enjoy their golden years. Singapore is setting the stage for a senior-friendly future.
Sources: Statista, PLB Insights, Centre for Liveable Cities
5) Green building policies will boost eco-friendly residential property values
New policies promoting green building practices are set to boost the value of eco-friendly homes.
In Singapore, the trend is clear: by 2022, 55% of buildings were already green-certified, with a goal of reaching 80% by 2030. This commitment to sustainability is not just about saving the planet; it’s about enhancing property values as more buildings meet these green standards.
Government incentives are a big part of this shift. The Building and Construction Authority (BCA) has rolled out schemes like the S$63 million Green Mark incentive, making it financially appealing for developers to go green. These incentives are a win-win, encouraging eco-friendly features that can lead to higher market values.
Buyers are also changing the game. With climate change on everyone’s mind, more people are looking for sustainable living environments. This shift in consumer preferences means that eco-friendly homes are not just trendy; they’re becoming more valuable.
Developers are catching on, too. They see the financial benefits of investing in green technologies, knowing that eco-friendly properties often command higher prices. This is not just a local trend; it’s a global movement towards more sustainable living.
As more people prioritize sustainability, the demand for green-certified homes is expected to rise, further driving up their market value. This is a smart move for anyone looking to invest in property, as eco-friendly developments are likely to offer better returns.
Sources: World Future Energy Summit, ADX Architects, Novatr
Get fresh and reliable information about the market in Singapore
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
6) Single-person households will drive demand for smaller efficient living spaces
In Singapore, the number of single-person households is rising, especially among the elderly.
With Singapore being one of the most densely populated places globally, space is a premium commodity. This means that the city needs to use its limited land wisely, and smaller living spaces are a smart way to fit more people without expanding the city. The government is on board with this idea, encouraging developers to build a variety of unit sizes, including compact ones like shoebox apartments.
Developments such as Margaret Ville and The Tapestry are already offering units that are 65 square meters or smaller. This shift towards smaller homes is not just a trend but a response to the high cost of living in Singapore. People are looking for more affordable housing, and smaller, efficient spaces fit the bill perfectly.
The Urban Redevelopment Authority is actively promoting the development of these smaller housing units. By doing so, they allow developers to cater to a diverse market, offering a range of apartment sizes that can maximize profits while meeting the needs of different buyers.
As the number of single-person households continues to grow, the demand for these compact living spaces is expected to rise. This trend is particularly evident in the real estate market, where smaller properties are becoming increasingly popular.
In a city where every square meter counts, the push for smaller, more efficient homes is not just a trend but a necessity. This approach helps accommodate the growing population without needing to expand the city's footprint.
Sources: Statista, Statista, URA
7) Wellness focus will drive demand for properties with green spaces and wellness facilities access
There's a growing focus on wellness, driving demand for properties with green spaces and wellness facilities.
In bustling Singapore, where population density is a staggering 8,383.25 people per square kilometer, the need for green spaces is more pressing than ever. This high density makes urban planning essential to ensure livability, and green spaces are a key part of the solution. The city is known for its innovative approach to urban development, often referred to as the "Garden City" for its lush greenery amidst urban landscapes.
The COVID-19 pandemic has made everyone more aware of the importance of mental and physical health. People are now seeking homes that offer wellness-focused environments, with a newfound appreciation for nature's role in supporting well-being. This shift has led to a surge in real estate projects that incorporate parks and natural outdoor recreation areas, making them more attractive to potential buyers.
Singapore's government is ahead of the curve, actively promoting green spaces and sustainable living. One standout initiative is the eco-smart city of Tengah, which aims to be a 'forest town' with extensive green areas. This project is a testament to Singapore's commitment to integrating nature into urban living, providing residents with a healthier lifestyle.
Urban planning in Singapore is all about green innovations, which is why the city has earned its reputation as a leader in sustainable development. The emphasis on creating wellness-oriented communities is not just a trend but a necessity, especially in densely populated areas. This approach not only enhances the quality of life but also boosts property values, making it a win-win for everyone involved.
As more people prioritize wellness, the demand for properties with access to green spaces and wellness facilities will continue to rise. This trend is reshaping the real estate market, with developers increasingly focusing on creating environments that promote health and well-being. It's a smart move, considering the growing awareness of the benefits of living close to nature.
Sources: Global Wellness Institute, Macrotrends, Earth.org, Global Wellness Institute Blog, Statista
8) Redeveloping Paya Lebar Airbase will significantly boost property values in surrounding areas
The redevelopment of the Paya Lebar Airbase is poised to significantly boost property values in the surrounding areas.
Looking at past projects in Singapore, there's a clear pattern: major redevelopments often lead to a rise in property prices. For instance, after the Marina Bay Sands was completed in 2010, nearby residential property prices increased by 15% in the following years. Similarly, the opening of the Thomson-East Coast Line in 2020 resulted in a 10% rise in property prices within a 1-kilometer radius.
The Paya Lebar Airbase project is massive, freeing up 800 hectares of land, which is about five times the size of Toa Payoh. This area will transform into a vibrant new town with districts like a civil quarter, tech quarter, and creative quarter. Such a large-scale urban renewal project is expected to drive up demand for properties in the area.
The government plans to relocate the airbase, allowing for the construction of up to 150,000 new homes and enabling taller buildings in nearby towns. This opens up new opportunities for property developers and is likely to attract more people to the area, further increasing demand. Additionally, the planned infrastructure improvements, such as repurposing the runway as a green connector, will enhance the area's accessibility and appeal.
Sources: Ohmyhome, Newport Residences CDL, The Straits Times, Mingtiandi
Everything you need to know is included in our Property Pack for Singapore
9) Virtual reality property tours will revolutionize property marketing and sales in Singapore
Virtual reality property tours are revolutionizing the real estate market, especially in recent years.
Imagine browsing homes from your couch; that's the power of VR. In Singapore, listings with virtual tours get 87% more views than those without. This means potential buyers are not just glancing but truly exploring properties. They spend 5-10 times longer on these sites, which shows they're more engaged and serious about buying.
Globally, the VR real estate market is booming. By 2025, it's expected to hit $2.6 billion, a leap from $800 million in 2020. This surge shows how VR is becoming a staple in property marketing strategies everywhere.
Buyers today, especially the younger crowd, are driving this change. Over 50% of adults have already taken a virtual tour, and 67% of home buyers want this feature when checking out listings. For those aged 18 to 34, the interest is even higher; they're 130% more likely to book a showing if a virtual tour is available.
This shift is reshaping how properties are marketed and sold. Virtual tours are not just a trend; they're becoming essential. They cater to a tech-savvy generation that values convenience and detailed exploration before making decisions.
Sources: EZ Real Estate Tools, The Luxury Playbook, PhotoUp
10) Smart city infrastructure will boost property appeal in tech-forward neighborhoods
Smart city infrastructure is making tech-forward neighborhoods more appealing to property buyers.
Take District 15 in Singapore, for example. In 2023, this area saw a notable rise in property values, with a compounded annual growth rate of 6.2% from 2014 to 2023. Even when the market faced challenges, District 15 managed a 4.5% annual price increase for non-landed resale homes in 2023. This shows how smart city features can boost property value.
One big reason for this trend is the growing demand for homes with smart features. The Singapore Smart Home Market was valued at USD 1.79 billion in 2023 and is expected to skyrocket to USD 7.90 billion by 2030. This growth is driven by a CAGR of 23.6% from 2024 to 2030. Government initiatives, like the development of Tengah Eco-Town, focus on eco-friendly urban planning and connected home technologies, which are making these properties even more desirable.
Singapore's Smart Nation project, launched in 2014, is a game-changer. It integrates advanced technologies into urban planning, including a national electronic identification system and a smart urban transport platform. The Virtual Singapore project, with an investment of up to USD 73 million, creates an interactive digital replica of the city for monitoring infrastructure and managing traffic flow.
These smart city developments are not just about convenience; they are reshaping how people view property investments. Buyers are increasingly looking for homes that offer more than just a place to live. They want a lifestyle that includes cutting-edge technology and sustainable living.
As these tech-forward neighborhoods continue to evolve, they are becoming hotspots for property investment. The combination of smart home features and advanced urban planning is making these areas highly attractive to modern buyers who value innovation and sustainability.
Sources: JLL, NextMSC, Economic Theory
11) Punggol Digital District will attract tech-savvy buyers and boost property values in the area
The Punggol Digital District (PDD) is becoming a hotspot for tech-savvy homebuyers.
With around 28,000 new jobs in fields like cybersecurity and smart city solutions, PDD is a dream for professionals wanting to live near work. This influx of jobs isn't just a statistic; it's a golden opportunity for tech enthusiasts to settle in a vibrant community.
Big names like Boston Dynamics and Delta Electronics Int’l are setting up shop in PDD, bringing over 2,000 tech jobs. This is a magnet for a workforce eager to live close by, which naturally boosts housing demand.
In areas where tech developments pop up, property values often jump by 15% to 25%. PDD is on the same track, with its smart infrastructure and community facilities making it a prime living spot.
Imagine living in a place where everything is designed to enhance your lifestyle. PDD offers just that, with amenities that cater to modern living, making it a highly desirable location.
As tech companies continue to flock to PDD, the area is set to become a bustling hub, attracting more residents and pushing property values even higher.
Sources: URA, JTC, D19 Condo, JTC News, Smart Nation
Don't buy the wrong property, in the wrong area
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
12) Jurong Lake District will be a prime residential investment as it transforms into a second Central Business District
The Jurong Lake District (JLD) is on track to become Singapore's second Central Business District (CBD), making it a hot spot for residential investment.
With significant government investment in infrastructure, JLD is being transformed into a sustainable living environment featuring mixed-use developments. Imagine a large site offering around 1,700 residential units, alongside plenty of office and retail spaces.
Property prices in JLD are climbing, showing growing interest. For example, The LakeGarden Residences has prices ranging from $2,127 to $2,362 per square foot, signaling that investors are already seeing JLD's potential as a lucrative opportunity.
Improved public transportation is another big draw. The new Jurong Region Line and Cross Island Line will boost connectivity, making JLD an attractive location for residents and businesses alike, with easy access to other parts of Singapore.
New amenities and facilities, like shopping malls and recreational areas, are set to enhance the district's appeal. The extensive greenery and open spaces, including the 90-hectare Jurong Lake Gardens, will make it a desirable place to live.
Sources: The Straits Times, Property How Much, Today Online, STB, MND
13) The Cross Island Line will increase property prices in Serangoon North and Hougang
The upcoming Cross Island Line (CRL) will boost property prices in areas like Serangoon North and Hougang.
With the CRL, these neighborhoods will enjoy improved connectivity, making travel across Singapore much easier for residents. This kind of development has historically led to a rise in property values. For instance, when the North-East Line (NEL) and the North-South Line (NSL) were introduced, areas like Punggol and Woodlands saw substantial growth in property prices.
Property analysts are already noting the potential for the CRL to enhance property values near its stations. The confirmed MRT locations are expected to lead to a 15% increase in property prices over the next decade, a significant jump from the initial 5% forecast.
This surge is driven by the growing interest in properties near future MRT stations. Buyers are attracted by the potential for higher rental yields and the convenience of improved accessibility. The CRL is set to transform these previously less accessible neighborhoods into highly sought-after areas.
As the CRL progresses, it's not just about convenience; it's about the economic uplift it brings to these communities. The anticipation of this new line is already creating a buzz in the property market, with many seeing it as a golden opportunity.
Sources: Channel News Asia, Property Launch Invest, LTA, Seedly Blog
14) The Kallang River precinct transformation will boost attractiveness and value of nearby residential properties
The Kallang River precinct is undergoing a transformation that will boost the attractiveness and value of nearby residential properties.
Thanks to the government's investment, the area is set to become a vibrant lifestyle hub. The Urban Redevelopment Authority (URA) has plans to enhance connectivity and greenery, including building a cycling bridge and underpasses. This kind of development is not new to Singapore, and it often leads to a rise in property values.
Take Marina Bay Sands, for example. After its completion in 2010, nearby residential property prices jumped by 15%. Similarly, when the Thomson-East Coast Line opened in 2020, properties within a 1-kilometer radius saw a 10% increase in value. These examples show how infrastructure improvements can directly impact property prices.
The Kallang Alive project is another exciting development. It will feature new amenities like a velodrome and the Kallang Football Hub, which are expected to draw up to 30 million visitors annually. This influx of people will likely boost the area's recreational and entertainment options, making it even more appealing to potential residents and investors.
With these changes, the Kallang River precinct is poised to become a sought-after location. The combination of improved infrastructure and new attractions will likely make it a hotspot for both living and investment. If you're considering buying property in Singapore, this area might be worth a closer look.
Sources: If Only Singaporeans, Newport Residences CDL, COS Blog
Everything you need to know is included in our Pack for Singapore
15) East Coast properties will see high demand with the Thomson-East Coast MRT line boosting connectivity
Properties in the East Coast area are becoming a hot commodity, thanks to the Thomson-East Coast MRT line boosting connectivity.
In 2023, while the rest of Singapore saw a dip in landed property transactions, the East Coast area bucked the trend with a rise in deals, especially in districts along the Thomson-East Coast MRT line. This uptick is expected to continue with the completion of TEL Stage 4 in 2024, making commuting even more convenient.
Property prices are climbing too. In late 2023, the Core Central Region saw a 3.9% increase in prices, and the Outside Central Region wasn't far behind with a 4.5% rise. As the TEL line expands, neighborhoods along the line are likely to see even higher prices due to increased demand and better accessibility.
Connectivity is a big deal for property buyers. The TEL line offers faster access to the city and other parts of Singapore, which is expected to boost interest in properties along this route. Looking at other MRT expansions, like the Downtown Line, we’ve seen property values and transaction volumes soar, hinting at a similar future for the East Coast area.
For those considering a move, the East Coast area offers a blend of convenience and potential for property value appreciation. The ongoing development of the TEL line is a game-changer, making it easier to get around and increasing the area's appeal.
With the TEL line enhancing connectivity, the East Coast area is poised for a surge in demand, making it a prime spot for property investment. The trend is clear: as accessibility improves, so does the attractiveness of the area.
Sources: Must Share News, Property Wealth Decoded, LTA Annual Report 2022/23
16) Tengah "Forest Town" will be a top choice for its sustainability and smart living focus
The Tengah "Forest Town" is gaining popularity due to its focus on sustainability and smart living.
From 2021 to 2023, there was a noticeable rise in demand for eco-friendly housing options, with a significant increase in applicants for homes in Tengah. This trend shows that people are increasingly interested in living in places that prioritize the environment.
The Singapore government is backing this green movement with the Singapore Green Plan 2030, aiming to cut carbon emissions and boost energy efficiency. Tengah aligns perfectly with these goals, especially with its large-scale residential centralised cooling system that showcases smart technology for energy-efficient living.
Singaporeans, especially the younger crowd, are becoming more aware of climate change and are willing to make personal sacrifices for sustainability. This cultural shift is evident in the high demand for BTO flats in Tengah, where residents are eager to embrace smart and sustainable living environments.
In Tengah, the integration of smart technology isn't just a concept; it's a reality. The town is designed to be a model of sustainable urban living, with features like automated waste collection and a car-free town center, making it a pioneer in eco-friendly urban planning.
Sources: Straits Times, PLB Insights, Reed Smith
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.