Will Singapore Property Prices Rise in the Next 2 Years?

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posted on 5 hours ago — updated on 1 second ago

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Analysts expect pockets of growth. This article breaks down district-by-district projections and what could influence prices by 2027.

Singapore’s property market has always been resilient. Whether it’s recovering from a global recession or navigating through rising interest rates, the market tends to stabilise faster than many others — but where is it heading next?

As we look toward 2026, many buyers, sellers, and investors are asking:
Will property prices rise in the next two years — or are we headed for a cooling period?

The answer isn’t straightforward. But by examining recent trends, government policy, supply-demand dynamics, and macroeconomic indicators, we can get a clearer picture of where prices might go.

1. The Market Has Shifted from Surge to Stabilisation

Over the last few years (2021–2023), Singapore’s property prices surged due to:

Delayed construction from COVID-19
Pent-up demand
Record-low interest rates
Limited supply of new launches

By late 2024 and into 2025, we saw signs of price stabilisation, especially in the resale HDB and mass-market private condo segments. This wasn’t a crash — it was a cooling of the pace of growth.

So what’s next?

2. Supply Will Increase — But Slowly

The government has ramped up land sales and new BTO launches to address supply issues. However:

Construction timelines are still long (3–4 years)
Labour shortages and material costs continue to be a challenge
Some developers are holding back launches for better timing

This means supply will increase gradually, but not fast enough to drastically lower prices in the short term — especially in mature estates or high-demand city fringe areas.

3. Demand Remains Strong Across Key Segments

Even with cooling measures in place (such as higher ABSD for investors and foreigners), demand remains steady for:

First-time homebuyers
Upgraders moving from HDB to private
Singapore PRs and citizens who are exempt from some restrictions
Long-term investors looking for yield stability

Additionally, more young Singaporeans are buying homes earlier, especially with remote work allowing flexibility in location. This helps sustain baseline demand even if investor appetite dips.

4. Interest Rates May Soften Slightly, Supporting Buyer Confidence

Interest rates surged globally between 2022 and 2024, impacting mortgage affordability and slowing demand.

In 2025, however, there are early signs that rates have peaked. Some banks have begun offering slightly more attractive fixed-rate packages, and economists expect a modest easing by late 2025 into 2026.

If rates ease — even slightly — and prices hold steady, buyer confidence is likely to return, driving moderate price growth, especially in areas with strong fundamentals.

5. Master Plans and Infrastructure Are Adding Long-Term Value

Locations with ongoing transformations are expected to see gradual price increases due to future potential:

Jurong Lake District: Singapore’s second CBD with integrated residential, retail, and business zones
Tengah: The first “Forest Town” with smart tech and green infrastructure
Greater Southern Waterfront: A massive multi-decade coastal redevelopment
Woodlands Regional Centre: An emerging cross-border hub with improved connectivity

In these zones, prices are likely to rise steadily over the next two years — not due to speculation, but because of real infrastructure investment and urban planning.

6. Luxury and CCR Properties Are More Uncertain

The Core Central Region (CCR) faces a slightly different trajectory. With increased ABSD (60% for foreigners as of 2023) and tighter lending rules, demand from foreign investors has slowed.

Still, limited land supply and ultra-high-net-worth local buyers continue to prop up this segment. Prices may not spike, but deep discounts are unlikely unless macro conditions worsen sharply.

7. Rental Demand Will Influence Investment Prices

Rental demand remains strong in 2025, driven by:

Delays in construction handovers
Influx of foreign professionals and students
Expats returning post-pandemic

If rental yields remain healthy and vacancy rates low, investor interest may return, especially in city fringe and new growth corridors — potentially supporting mild price increases through 2026.

So… Will Prices Rise?

Likely Scenarios for 2025–2026:

Segment	Price Trend (Next 2 Years)
Mass-market condos (OCR)	Stable to slight increase (2–4%)
City fringe condos (RCR)	Moderate growth (3–6%)
Prime districts (CCR)	Flat or mild recovery
HDB resale	Stabilising with limited upside
ECs (Executive Condos)	Steady with long-term growth

Barring a global economic crisis or major local policy shock, moderate price growth is the most likely outcome over the next two years — especially in well-connected, liveable districts with future-ready infrastructure.

Final Thoughts

Trying to time the property market perfectly is difficult — even for seasoned investors. But if you're a serious buyer with a long-term horizon, here’s what matters more than short-term fluctuations:

Buy in a location with strong fundamentals
Choose a layout and facing that will age well
Ensure you can hold the property comfortably through market cycles

Prices may not rise dramatically in the next 24 months — but they’re also unlikely to fall significantly. And for many, the risk of waiting too long may outweigh the reward of short-term savings.