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What is happening in Singapore’s real estate market? Are prices on the rise or decline? Is the city-state still a prime destination for international investors? How are Singapore’s government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from industry professionals, potential buyers, and sellers, from Marina Bay to Orchard Road and beyond. Perhaps you’re curious about these trends too.
We understand this because we maintain close connections with local experts and individuals like you, exploring the Singaporean real estate market daily. That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) Mass-market residential property prices will rise moderately due to strong local demand
In 2023 and 2024, HDB resale prices rose by 6.9% in the first nine months of 2024 alone.
Expect this trend to continue, with prices predicted to increase by 5% to 8% in 2025, especially in popular districts like Bedok, Bishan, Bukit Batok, and Bukit Merah. These areas are hot spots due to their convenient locations and amenities, making them attractive to buyers.
The demand for affordable housing is strong, as seen in the high transaction volumes in the HDB resale market. In October 2024, there were over 35,678 applicants for just 8,573 BTO flats, showing how many are turning to the resale market due to long BTO waiting times.
Government policies are also boosting local homeownership. The increase in BTO subsidies in June 2024 is expected to push HDB resale prices higher. Measures like the additional buyer's stamp duty (ABSD) rates are designed to keep the property market sustainable and focus on housing for owner-occupation.
These policies underscore the emphasis on local demand, ensuring that residents have access to housing. The government's approach aims to balance the market, making it more accessible for those looking to buy their first home.
With these factors in play, mass-market residential properties are likely to see moderate price increases, driven by strong local demand and supportive government measures.
Sources: The Independent, Cushman & Wakefield, 99.co
3) Families seeking more space and privacy will drive up demand for landed properties
Families in Singapore are growing, and with that comes the need for more spacious homes.
In 2024, landed property sales in Singapore jumped to 1,733 units, up from 1,516 in 2023. This surge, along with a 10.5% increase in transaction values to $9.17 billion, shows a strong demand and rising prices for these homes. The Core Central Region saw a notable rise in average unit prices, attracting ultra-high-net-worth individuals back into the market.
District 19 emerged as the top choice for landed homes in 2024, with 309 transactions. This area is popular due to its established neighborhoods and easy access to amenities, making it ideal for families wanting more space and privacy. The trend towards remote work has also fueled the desire for home offices, which are more practical in landed properties than in crowded apartments.
Sources: SRI Insights, SG Luxury Homes, Policy Note
4) New cooling measures will slow residential market price growth
In 2023 and 2024, the Singapore government rolled out new cooling measures to keep residential property prices in check.
One major move was hiking the Additional Buyer's Stamp Duty (ABSD) for foreigners, doubling it from 30% to 60%. This aims to curb speculative buying and investment, which should help control price hikes. If you're a foreign buyer, this is a big deal, as it makes purchasing property in Singapore significantly more expensive.
Looking back, we see that past cooling measures have worked. For example, after new rules were introduced in December 2021 and September 2022, the HDB resale price index showed slower growth. This trend carried on into 2023, suggesting these measures can effectively moderate the market.
On top of that, the government plans to boost the housing supply. They're aiming for 40,000 new completions in 2023 and a total of 100,000 from 2023 to 2025. More homes mean meeting demand better, which should help keep prices from skyrocketing.
For potential buyers, this means a more balanced market. With more options and less speculative pressure, you might find it easier to snag a property without breaking the bank. The government's strategy is to ensure that housing remains accessible and affordable for everyone.
These measures are part of a broader effort to create a sustainable property market, where prices grow at a manageable pace. It's all about making sure that the market doesn't overheat, which could lead to a bubble and subsequent crash.
Sources: MND Singapore, Channel News Asia, The Straits Times
6) Smaller studio apartments will become less popular as remote work trends persist
With remote work becoming the norm, people are rethinking their living spaces.
Back in 2023 and 2024, there was a noticeable shift towards larger homes. Developers caught on, with 14% of new units redesigned to include more workspace. This change reflects the growing need for roomier environments to accommodate work-from-home setups.
Surveys from that period showed a strong desire for home offices. Many renters struggled with the lack of dedicated work areas, and 42% of remote workers planned to move to larger units for more space and affordability. The push for more room was all about achieving a better work-life balance.
Home office furniture sales also surged. Companies like Okamura International in Singapore expanded their product lines, offering a variety of office furniture to meet the demand. This trend indicates that people are investing in more functional home workspaces.
As remote work continues, smaller studio apartments are losing their appeal. The focus is shifting towards homes that can accommodate both living and working needs comfortably. This change is evident in consumer behavior and spending patterns.
In Singapore, for instance, the leasing market is cooling, giving tenants more options. This shift suggests that larger living spaces are becoming more desirable as people prioritize comfort and functionality in their homes.
Sources: Business Standard, Okamura, NAAHQ
11) Higher property taxes will affect the profitability of luxury investments
Increased property taxes in Singapore are a growing concern for those eyeing high-end investments.
In recent years, Singapore has seen a shift in tax rates, especially for luxury properties. By 2023, owner-occupied properties faced steeper tax hikes, and this trend continued into 2024 and 2025. If your property's annual value exceeds $140,000, you're looking at a hefty 32% tax rate.
These rising taxes are squeezing the profitability of high-end investments. According to The Straits Times, property taxes for most homeowners rose in 2024 due to higher market rents and annual values. Owners of expensive private properties are particularly feeling the pinch.
Experts like Song Seng Wun, a Singapore economic adviser, point out that the rental market has stabilized. This means landlords can't easily pass increased property taxes onto tenants, which is a big deal for those relying on rental income from luxury properties.
With these challenges, the yields on luxury properties are taking a hit. The inability to transfer tax burdens to tenants means reduced profitability for high-end property owners. This is a crucial factor to consider if you're thinking about investing in Singapore's luxury real estate market.
Sources: IRAS - Property Tax Rates and Sample Calculations, The Straits Times - Property Taxes for Most Homes to Rise in 2024
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12) Flood mitigation efforts will enhance confidence in properties in low-lying areas
In Singapore, the government has invested S$1.4 billion between 2021 and 2025 to improve drainage infrastructure.
Thanks to these efforts, flood-prone areas have shrunk from 3,200 hectares in the 1970s to less than 30 hectares today. This means fewer flash floods, even with the extra rain brought by climate change. Improved drainage systems are the heroes here, and media coverage has helped boost public confidence.
People are noticing the changes. Properties in areas with better flood defenses are seeing more interest and higher values. Urban planning reports and real estate analyses back this up, showing a clear trend in the market.
Government reports highlight the economic perks of these flood mitigation efforts. Reduced economic losses from flooding are a big win, making these areas more attractive to potential buyers.
For those considering buying property, this is a game-changer. Investing in low-lying areas now seems less risky, thanks to these robust flood defenses.
With these improvements, confidence in the real estate market is on the rise, especially in areas that were once considered vulnerable.
Sources: Channel News Asia, Smart Water Magazine
13) Woodlands will gain appeal with the upcoming Johor Bahru-Singapore Rapid Transit System
Woodlands is becoming a hot spot thanks to the Johor Bahru-Singapore Rapid Transit System (RTS Link).
This project has sparked a surge in property demand and prices. Take the Norwood Grand residential project, for example, where 292 units were snapped up at impressive prices. This is part of a larger trend since the RTS Link announcement, showing how much interest in Woodlands has grown.
The government is also pouring resources into turning Woodlands into a northern regional hub. They're planning to build 14,000 new homes and improve infrastructure, all to meet the rising demand for housing and make the area even more appealing.
The RTS Link is a game-changer, with a peak capacity of 10,000 passengers per hour per direction. This means easy travel between Singapore and Johor Bahru, plus new job opportunities for locals. With better accessibility, more businesses and residents are expected to flock to Woodlands.
These developments are part of a strategic plan to boost Woodlands' appeal. The area's transformation is not just about housing; it's about creating a vibrant community with everything you need close by.
As Woodlands evolves, it's becoming a place where people want to live, work, and play. The RTS Link is just the beginning of this exciting journey.
Sources: The Star, AsiaOne, LTA
14) Property values will rise in areas newly connected by the expanding MRT network
The expansion of the MRT network in Singapore is transforming property values in newly connected areas.
In 2024, there was a historic surge in property transactions, with 2,557 new home sales in November alone. This boom was largely due to the MRT network's improved connectivity, making these areas more accessible and attractive to buyers.
Historically, the HDB Resale Price Index showed a 6.9% increase in the first nine months of 2024, compared to just 3.8% in the same period in 2023. This growth was driven by the demand for larger flats, which became more appealing due to the enhanced accessibility offered by the MRT.
The Hougang Central project is a prime example of how MRT integration can boost property interest. Its strategic location and mixed-use development are expected to drive up property values, making it a hot spot for potential buyers.
Experts and government reports have long predicted that improved connectivity from MRT expansions would lead to increased property values. The Government Land Sales Programme for the first half of 2025 reflects this, with a strategic increase in residential unit supply to meet market demands.
This approach is expected to stabilize private property prices and support long-term market equilibrium, further enhancing property values in newly connected areas.
Sources: Government Land Sales Programme, Singapore Realtors Inc. Insights, Rail Journal on Singapore’s Rail Investment
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.
15) Property values will rise in areas with new Cross Island Line stations
The Cross Island Line (CRL) is set to boost property values in areas with new stations.
Historically, new MRT lines have been a game-changer for property prices. Take the Thomson-East Coast Line, for example, where properties saw a noticeable increase in value thanks to better accessibility and connectivity. This trend is expected to continue with the CRL, making it a hot topic among potential buyers.
Government reports back this up, showing that infrastructure projects like the CRL not only enhance connectivity but also improve the quality of life. The Land Transport Authority points out that the CRL will significantly improve connectivity for residents in the west, including areas like Sunset Way and West Coast. This makes these neighborhoods more appealing to both buyers and renters.
Property analysts are already predicting a rise in property values near the new CRL stations. Areas such as King Albert Park, Clementi, and West Coast could see price gains of up to 5% once the stations are up and running. This is a big deal for anyone looking to invest in these areas.
Urban planning studies also support this, showing that enhanced accessibility through new MRT lines can lead to higher demand for properties. This means that if you're considering buying property near these new stations, you might be making a smart investment.
Sources: Channel News Asia, Lentor Collection, Grand Dunman Condo
16) Redeveloping Paya Lebar Airbase will open new residential opportunities in the east
The redevelopment of the Paya Lebar Airbase is set to create new residential opportunities in the east of Singapore.
Thanks to the government's big push in infrastructure, the Urban Redevelopment Authority (URA) plans to move the Republic of Singapore Air Force by 2030, freeing up 800 hectares of land. This area is earmarked for a new town that's both liveable and sustainable. Imagine a place buzzing with life, where the airbase once stood.
URA's plans divide the area into districts like civil and tech quarters, plus transitional residential zones. This zoning is a clear nod to residential development as a major focus. If history is any guide, similar projects in Singapore have often led to a jump in property values, hinting at a strong demand for new homes.
Developers are already eyeing the area, eager to start high-rise projects once they get the green light. This interest is backed by population growth in eastern Singapore, which shows a rising need for housing. The redevelopment could bring in up to 150,000 new homes, similar to what you see in Punggol and Sengkang.
With the potential for so many new homes, the project is set to meet the growing demand for residential space in the region. It's not just about numbers; it's about creating a vibrant community where people want to live. The buzz around this redevelopment is palpable, and it's easy to see why.
Sources: Ohmyhome, The Straits Times, Mingtiandi
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.