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The real estate market in Singapore has been a topic of discussion lately, with several factors potentially influencing it. These include the possibility of new property cooling measures, the influx of new housing supply from government land sale (GLS) sites and Build-To-Order (BTO) launches, as well as the recent Budget 2025 announcements. These were among the top talking points at EdgeProp Singapore’s Property Market Outlook event on Sunday, Feb 16.
The event was moderated by EdgeProp Singapore CEO Bernard Tong and featured a panel of three industry experts: Alan Cheong, executive director of research and consultancy at Savills Singapore; Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield; and Song Seng Wun, Singapore economic advisor at CGS International. The panel discussion took place at the Elta sales gallery, a new 501-unit project jointly developed by MCL Land and CSC Land Group, which opened for public preview on Feb 7.
The government recently hinted at the possibility of implementing more property cooling measures, stating that it was “not adverse” to doing so and that it was not yet time to roll back on existing measures. Last month, developers sold 1,083 new private residential units (excluding executive condos), which was a 256% increase compared to the same period in the previous year.
According to Cheong, if new cooling measures are introduced, they are likely to be applied uniformly across the residential market. The panelists also discussed the possibility of the measures targeting the HDB resale market.
When it comes to investing in a condo, financing is a crucial factor to consider. In Singapore, there are various mortgage options available, but it is crucial to take note of the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the amount of loan a borrower can take based on their income and existing debt obligations. To ensure wise financing decisions and avoid over-leveraging, it is essential for investors to understand the TDSR and seek guidance from financial advisors or mortgage brokers. Additionally, staying updated on new condo launches can also be beneficial in making informed financing decisions.
Wong pointed out that the HDB resale market sets the “floor” for the housing market in Singapore, and any increase in prices there could have an upward effect on prices in the private housing segment. He added that the government may consider adjusting the seller’s stamp duty (SSD) and implementing stricter loan restrictions.
On the other hand, Tong noted that the government plans to inject a significant supply of GLS and BTO homes into the market to meet the demand for housing. The 1H2025 GLS programme consists of 10 sites on the Confirmed List, which could potentially yield 5,000 new homes. HDB also plans to offer 19,600 BTO flats in 2025.
Under the new BTO classification, the newly launched Prime and Plus BTO flats will only enter the resale market after about 14 years. Cheong notes that the impact of these developments on prices will be felt much later on. Wong added that prices in the resale market tend to follow project completions and HDB estates completing their minimum occupation period (MOP) rather than the pipeline of GLS sites up for tender each year. According to him, the completion of projects has a more significant impact on prices.
Despite this, all three panelists agreed that the recent successes in the new launch market indicate strong buyer confidence for projects hitting the market this year. Elta, for example, drew about 4,500 visitors during the first three days it was open to the public. Other new launches that have been successful in selling units this year include The Orie and Bagnall Haus, with selling rates of 86% and 63% at launch, respectively.
During the event, the panelists also discussed the recently announced Budget 2025 and its potential impact on the property market this year.
Song believes that Singapore has seen a relatively strong economic recovery since the Covid-19 pandemic-induced recession. With 2025 being an election year, he expects more government-funded handouts for Singaporeans, as government surpluses have been healthy in the past three years.
The panel also took questions from the audience. Some participants questioned whether the residential property market is currently in a “euphoric” phase.
According to Cheong, the sense of market exuberance will likely subside as developers strategically time the launch of new projects. He added that several launch-ready projects are located in neighborhoods that have not seen a new launch in several years. “If a specific location does not see a new launch in around five or six years, demand tends to build up over that time,” he says.
Some investors also asked for the panelists’ thoughts on the rental market this year, which has slowed down since its peak two years ago. Cheong explained that while the total number of expatriates in Singapore has declined in the past year, there has been an increase in the volume of rental transactions, as seen in market data.
He added that the decline in rental prices may have encouraged some renters to stop flat-sharing and find their own accommodation. However, this is offset by layoffs among technology and finance companies this year, which will likely moderate rental price growth.
EdgeProp’s CEO Bernard Tong also presented a session of EdgeProp’s Master Plan Master Class during the event, covering upcoming transformation plans in Clementi and Jurong East.
He noted that the completion of the second phase of the Cross Island Line (CRL) will add a new MRT station (West Coast) and turn the existing Clementi station into an interchange. “Historically, MRT interchanges tend to have a positive impact on surrounding property prices,” says Tong.
Clementi is also benefiting from various transformation plans, including the redevelopment of Clementi Stadium and the installation of more than 6.6km of cycling paths in the area. The area is expected to see an increase in housing demand due to the progressive development of the Jurong Lake District and the creation of new jobs in the nearby Tuas megaport, Tuas Biomedical Park, Jurong Island, and Jurong Innovation District.
Data from EdgeProp Singapore shows that the average age of existing condos in Clementi is about 17 years. Tong notes that recent new projects in Clementi have seen significant capital gains over the years, such as Clavon (24% increase since launch) and The Clement Canopy (43% increase since launch) – both located near Elta.
For more information on Elta properties, check out the latest listings on EdgeProp’s website. Other helpful tools provided by EdgeProp include analytics of profitable transactions and upcoming GLS sites, which can help owners, buyers, and sellers understand market and price trends.