Singapore’s property market demonstrates resilience with forecasted price increases of 4-7% in 2025, underpinned by stable GDP growth of 1-3% and low unemployment at 2.6%. Supply remains constrained with only 11,000 new condominium units expected, while demand strengthens from 100,000+ HDB flats reaching MOP and continued foreign interest despite high ABSD rates. Expected mortgage rate decreases and strategic infrastructure developments further enhance investment potential across specific market segments.
As Singapore’s property market continues to demonstrate remarkable resilience despite global economic headwinds, industry analysts project private property prices to rise by 4-7% in 2025, underscored by a forecasted GDP growth of 1-3% and a persistently low unemployment rate of 2.6%. This stabilization reflects a more sustainable growth trajectory, with the cooling measures implemented in 2023 continuing to moderate market dynamics while maintaining investor confidence in the long-term fundamentals of Singapore’s real estate sector.
Demand remains robust, driven by multiple factors including the significant number of HDB flats reaching Minimum Occupation Period (MOP), with over 100,000 units recently becoming eligible for resale, creating a substantial pool of potential upgraders. Additionally, new household formation of approximately 20,000 annually, coupled with rising household incomes, is expanding the buyer pool across market segments. Foreign interest persists despite the substantial 60% Additional Buyer’s Stamp Duty (ABSD) imposed on foreign purchasers. Demographic shifts such as an aging population and increasing number of singles are also influencing housing preferences and government policies.
Singapore’s property market continues to thrive despite cooling measures, fueled by MOP-reaching flats and steady household formation.
On the supply side, market participants can expect approximately 11,000 new launch condominium units in 2025, while the HDB resale market faces limited supply with only about 7,000 units reaching MOP. The introduction of new HDB categories, including Plus and Prime flats, adds diversity to the public housing landscape. Property Price Index is expected to grow by 1% to 2% in 2025, following higher growth rates in previous years.
Infrastructure developments continue to enhance property values in specific areas, with developers likely accelerating launches in response to improved market sentiment. The Q3 2024 data shows landed properties experienced a notable 3.4% quarter-on-quarter decline, contrasting with the slight increase in non-landed properties.
Financial conditions are anticipated to improve with mortgage rates expected to decrease in 2025, while banks compete to offer attractive home loan packages. The shift from SIBOR to SORA as the main lending benchmark represents a significant change in the financing landscape, with total outstanding housing loans currently standing at SGD 224.1 billion.
Singapore’s residential mortgage market equivalent to 33% of GDP underscores the economic significance of the property sector. Singapore’s position among the top three investment destinations in APAC reflects international confidence in the market, where rental yields remain attractive, particularly in prime areas.
The government maintains a proactive stance on market regulation, balancing stability concerns with sustainable growth objectives through calibrated land supply and housing affordability initiatives.
Frequently Asked Questions
How Do Foreigner Property Taxes Compare to Those for Locals?
Foreigners face markedly higher tax burdens than locals in Singapore’s property market.
While property tax rates apply equally to both groups based on the Annual Value, foreigners encounter a substantially higher Additional Buyer’s Stamp Duty (ABSD) at a flat 60% compared to Singaporeans’ tiered rates of 0% (first property), 20% (second), and 30% (third+).
Additionally, foreign investors experience more limited financing options and face a 22% tax on rental income if non-resident.
What Are the Best Neighborhoods for Rental Yield?
Geylang/Eunos leads Singapore’s rental yield market at 4-4.5%, followed by Toa Payoh/Serangoon and Woodlands/Yishun at 3.8-4.3%.
The Outside Central Region generally offers higher returns due to lower entry prices, while maintaining strong tenant demand.
Emerging hotspots like Paya Lebar (3.8-4.3%) present compelling opportunities due to commercial hub development.
Areas with strong infrastructure development, proximity to employment centers, and upcoming integrated facilities consistently demonstrate superior rental performance metrics.
How Does Political Stability Impact Singapore’s Property Market?
Singapore’s political stability serves as a foundational pillar for its robust property market, manifesting through consistent policies that foster investor confidence and efficient regulatory frameworks.
The nation’s top-tier global stability ranking attracts significant foreign investment, particularly from high-net-worth individuals seeking secure assets.
This political constancy enables implementation of strategic land use planning, transparent property transactions, and long-term housing policies, while maintaining market predictability that supports property value appreciation and sustained rental demand.
Can Foreigners Obtain Mortgages From Singapore Banks?
Foreigners can indeed secure mortgages from Singapore banks, though under more stringent conditions than citizens.
Most major institutions, including DBS, OCBC, UOB, and international banks like Citibank and HSBC, offer foreign applicants mortgage options with a maximum loan-to-value ratio of 75% for first properties.
Applicants must demonstrate annual incomes of SGD 50,000-100,000, provide thorough documentation, and accept higher interest rates, while being subject to the 60% Additional Buyer’s Stamp Duty.
What Sustainable Building Certifications Increase Property Value?
Green Mark certification has demonstrated a 3% increase in property values, serving as Singapore’s primary sustainability benchmark.
Other value-enhancing certifications include LEED, which appeals to international investors despite lower domestic prevalence, and SGBP certification, which recognizes sustainable building products.
BCA Green Mark for Existing Buildings certification is increasingly significant, as retrofitting older structures will become mandatory for buildings exceeding 15,000 m² by 2030, aligning with Singapore’s Green Plan 2030 sustainability objectives.
