What Lies Ahead for Singapore’s Property Market in 2025?

The forecast suggests a year of restrained growth for Singapore’s property market, with the rapid price escalations of recent times giving way to a more subdued pace. Residential property prices are expected to inch up by 3% to 5%, influenced by the enduring impact of 2023’s cooling measures—like the elevated Additional Buyer’s Stamp Duty (ABSD) rates—and sustained high interest rates that discourage speculative purchases. The market appears poised for stability, underpinned by Singapore’s solid economic foundations, though luxury properties in the Core Central Region (CCR) may experience subtle shifts driven by wealthy foreign buyers undeterred by the 60% ABSD.
Human intuition, however, hints that this might underplay external dynamics. The intensifying US-China trade tensions, heightened by today’s geopolitical climate, could steer more overseas capital towards Singapore’s premium properties despite the tax barriers. Furthermore, buyers from nations like the US, who face the same ABSD rates as locals, might amplify demand in the CCR, potentially nudging prices beyond this modest projection.

The analysis points to a lively resale market, especially for larger units in well-established estates, as families prioritise ready-to-move-in homes and better value over new launches hampered by scarce land supply. It anticipates robust demand from HDB upgraders cashing out at peak flat prices, fuelling interest in mass-market condominiums in the Outside Central Region (OCR). Yet, this outlook assumes a consistent stream of resale activity without fully grappling with supply-side challenges.

A human lens reveals a sticking point: current homeowners are hesitant to sell. With replacement properties—new or resale—carrying steep price tags, few are eager to let go of their homes, particularly those with multiple properties wary of facing hefty ABSD costs on future buys. This reluctance could constrict resale volumes, casting doubt on expectations of a thriving market. While the appetite for spacious resale units is clear, a shortage of willing sellers might keep transactions scarcer than anticipated, especially in prime areas.

Rental Shifts and Policy Influences

Policy-wise, the analysis expects Singapore’s government to keep a firm hand on the market, possibly releasing additional land through the Government Land Sales programme and refining HDB rules to ease pressure on private properties. Human observers concur but stress the government’s dominant role—agencies like the URA and HDB don’t merely respond but actively mould the market. Recent emphasis on HDB affordability, alongside new Plus and Prime flat categories, might already be tempering demand, potentially reducing the need for tougher measures.