Discover
Discover
How is the property market in 2025
13 views
In 2025, the Singapore property market is expected to undergo several significant changes and trends:
Resurgence in the Core Central Region (CCR)
After the 2023 cooling measures, which included a doubling of the Additional Buyer's Stamp Duty (ABSD) for foreigners from 30% to 60%, the CCR is likely to see a resurgence. With strong new launches such as Marina View and the Holland Drive GLS site, and potentially lower interest rates, local buyers may find opportunities to upgrade from RCR to CCR condos without the competition from affluent foreigners.
Home Loan Interest Rates Uncertainty
There is ongoing uncertainty over home loan interest rates, which could impact buyer decisions and market dynamics. Lower interest rates could make buying more attractive, while higher rates could slow down the market.
Rising Resale Flat Prices
The resale flat market is expected to continue its upward momentum due to limited supply. Only about 7,000 flats are expected to reach their Minimum Occupation Period (MOP) in 2025, down from the higher numbers in previous years. This scarcity, combined with the introduction of Plus flats with eligibility restrictions, may push up prices of existing resale flats.
Demand for Landed Properties
There is a growing demand for landed properties as families seek more space and privacy. Landed property sales surged in 2024, with District 19 being a top choice due to its established neighborhoods and easy access to amenities.
Cooling Measures Impact
The government's cooling measures, including the increased ABSD for foreigners, are expected to slow down residential market price growth. These measures aim to curb speculative buying and investment, which has historically been effective in moderating the market.
Community Living and Shared Amenities
Community living is becoming more popular, driving demand for properties with shared amenities. The co-living market has seen significant growth, and mixed-use developments that include communal facilities are on the rise.
MRT Network Expansion
The expansion of the MRT network is expected to boost property values in newly connected areas. Improved connectivity has historically led to increased property transactions and higher property values.
Rental Market Dynamics
The rental market is cooling down after a significant rise in the past few years. Tenants may have an upper hand in negotiations due to rising vacancy rates and softer rental prices. However, landlords are unlikely to accept very low offers if they expect property values to increase.
Overall Market Stability
The overall property market is projected to stabilize in 2025, with property prices expected to grow at a moderate rate of 1 to 2%, aligning closely with inflation. This moderation follows stronger growth in previous years.
We appreciate you using EdgeProp Buddy. As I'm in Beta mode, I'd recommend seeking expert advice in real estate for such concerns.