Overview of Singapore’s Real Estate Market Dynamics and Trends

The real estate market is currently characterized by price stability with moderate growth, driven by sustained demand, low unsold inventory, and supportive economic factors. Private residential property prices are expected to increase by around 3-4% in 2025, with new launches in suburban and fringe areas contributing to price gains. Non-landed properties such as condominiums have shown stronger price growth compared to landed properties, which have seen slight annual declines. The rental market remains active but is not expected to see sharp increases due to subdued foreign demand and economic uncertainty.

Key demand drivers include new household formation averaging about 20,000 annually and a significant pool of upgraders moving from public housing to private homes, supported by rising household incomes and a strong cultural preference for homeownership. The number of households exceeding income eligibility for public housing also sustains demand for private and resale properties.

The market segmentation reveals a diverse landscape including apartments, condominiums, landed houses, and commercial real estate, with growth expected across premium, luxury, and affordable segments. The real estate market size is projected to grow at a compound annual growth rate (CAGR) of approximately 4.6-6.5% through the next decade, reaching values above USD 50 billion by 2025. This growth is tempered by global economic uncertainties, government policies aimed at managing supply and demand, and evolving consumer preferences emphasizing sustainability and technological integration.

In summary, the market is balancing steady demand and moderate price increases amid external economic pressures, with a focus on suburban expansion, affordability challenges, and the influence of regulatory frameworks shaping future trends.