What is the property market outlook for next year

Singapore's property market outlook for next year is characterized by stabilization and moderated growth rather than the rapid price appreciation seen in previous years.

Private Residential Market

The private residential sector is expected to see overall price appreciation in the range of 1% to 5% for 2025, with the market shifting away from the double-digit price hikes of earlier years. The landed and luxury segments are demonstrating particular resilience due to their unique supply-demand characteristics. This more sustainable trajectory reflects a market moving from rapid growth into a phase where success depends on granular insights and strategic positioning.

HDB Resale Market

The HDB resale market is experiencing clear signs of moderation. After rising by 1.5% in the first quarter of 2025, growth slowed to just 0.9% in the second quarter—the smallest quarterly increase in five years. For the full year 2025, HDB resale prices are projected to increase by 3% to 6%, which represents a significant cooling from the high single-digit and double-digit growth rates previously experienced.

Despite this overall moderation, there's an interesting paradox: "million-dollar HDB flats" have accelerated. In the second quarter of 2025, a record 415 resale flats transacted at or above the S$1 million mark. This reflects affordability challenges in the private market, where families are increasingly viewing premium HDB flats as compelling value propositions compared to entry-level private condominiums.

Key Market Drivers

The market is being shaped by opposing forces. Supporting factors include anticipated easing of mortgage interest rates, resilient demand from HDB upgraders and new household formations, and a critical shortage of available supply in the private sector. Headwinds include global economic uncertainty, a softening domestic labour market, persistent affordability challenges, and government policy measures aimed at maintaining market stability.

Investment Activity

Singapore's commercial real estate investment market is regaining momentum, with S$10.5 billion in investment sales recorded in the third quarter of 2025. The significant drop in interest rates this year is expected to drive increased private investment sales activity in the final quarter of 2025 and into 2026.

Executive Condominiums

For eligible buyers, Executive Condominiums continue to represent an attractive value proposition, offering subsidized purchase prices with the potential for full privatization and sale on the open market after 10 years.