Singapore’s property market has long been a favorite topic at dinner tables, hawker centres, and financial blogs. With real estate prices having surged over the past decade—and with cooling measures, higher interest rates, and an uncertain economy—many are asking:
“Does it still make sense to buy property in Singapore?”
Whether you’re a first-time homebuyer, seasoned investor, or considering upgrading, this article dives into the current property landscape and breaks down the pros and cons of different property types: HDB flats, condominiums, landed homes, and commercial properties.
🇸🇬 The State of the Property Market in 2025
Singapore property prices, especially in the private residential sector, saw steady growth post-COVID. Although price growth has slowed in 2024–2025 due to cooling measures and higher interest rates, demand remains resilient due to:
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Low unemployment
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Limited land supply
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Singapore’s strong global appeal
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Immigration and PR applications rebounding post-COVID
The government continues to implement cooling measures like:
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Higher ABSD (Additional Buyer’s Stamp Duty)
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Tighter loan-to-value limits
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Stricter Total Debt Servicing Ratio (TDSR)
These have cooled speculation—but not eliminated interest.
🏠 HDB Flats: The Backbone of Homeownership
✅ Pros:
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Affordability: Heavily subsidized for first-time buyers, especially BTO flats.
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Grants & Incentives: CPF Housing Grant, Enhanced CPF Housing Grant, and others help reduce upfront costs.
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Low Interest Rates on HDB Loans: Fixed 2.6% vs bank loans that can fluctuate.
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Stability in Value: While not for speculation, many HDB flats hold their value well, especially in mature estates.
❌ Cons:
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99-Year Lease Decay: Older flats lose value over time and may be ineligible for SERS.
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Restrictions on Renting/Selling: 5-year Minimum Occupation Period (MOP); no immediate investment return.
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Limited Capital Gains: Compared to private properties, HDBs typically don’t offer significant appreciation.
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Resale Demand Is Uneven: Flats in non-mature estates or with less convenient amenities may struggle with demand.
Verdict:
Perfect for first-time buyers and families who value affordability, grants, and stability. Not ideal for capital appreciation or investment.
🏢 Condominiums: Lifestyle and Investment Appeal
✅ Pros:
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Better Facilities: Pools, gyms, security—condos offer a lifestyle upgrade.
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Freedom to Rent or Sell Anytime: Especially for private condos (not Executive Condos under MOP).
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Capital Appreciation Potential: Prime district or MRT-proximate condos tend to appreciate well.
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Foreigners Can Buy: Unlike HDBs or landed, condos are accessible to foreigners and PRs, ensuring wider resale demand.
❌ Cons:
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High Price Tag: Entry point for new launch condos in 2025 is ~$2,000–$2,400 psf or higher.
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Maintenance Fees: Monthly costs for upkeep, whether you use facilities or not.
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Over-Supply Risk: Some regions (e.g., OCR or fringe areas) may see flat pricing due to high supply.
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ABSD and Taxes: Additional stamp duties for second properties and foreigners erode returns.
Verdict:
Ideal for those who want both lifestyle and long-term investment growth. Requires careful selection of location and entry price.
🏡 Landed Property: The Ultimate Dream (with a Price)
✅ Pros:
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Scarcity = Long-Term Value: Only 5% of housing in Singapore is landed, keeping it exclusive.
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No Condo Restrictions: Full control over your land, design, and home layout.
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High Upside Potential: Especially in freehold estates or gentrifying neighborhoods.
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Generational Asset: Great for legacy planning, multigenerational living.
❌ Cons:
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Extremely High Cost: Entry price for terrace homes now ranges from $3 million up; semi-Ds and bungalows easily hit $5–$15 million.
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No Facilities: No gym, pool, or clubhouse—unless you build them.
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Maintenance Burden: You’re responsible for structural upkeep, pest control, gardening, etc.
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Limited Liquidity: Fewer buyers; takes longer to sell than condos or HDBs.
Verdict:
Best for the ultra-wealthy, legacy-minded buyers. Not for short-term flipping or those with budget constraints.
🏢 Commercial Property: Offices, Shophouses & Retail Units
✅ Pros:
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No ABSD: Unlike residential properties, commercial assets are not subject to additional stamp duties.
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Potential for High Rental Yield: Especially for well-located retail or F&B spaces.
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Ownership by Company: Suitable for business owners buying for self-use.
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Longer Leases Possible: Commercial tenants often sign 2–3 year leases.
❌ Cons:
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GST & Taxes: Commercial property buyers may need to factor in GST or business property tax.
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Challenging Tenant Market: Especially for retail spaces post-COVID, with high turnover risk.
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No CPF Usage: Cannot use CPF for purchase or loan repayment.
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More Volatile Than Residential: Sensitive to economic cycles, tourism, and foot traffic.
Verdict:
Good for seasoned investors or business owners who understand the risks. Not ideal for first-timers or those seeking stable, passive income.
🧮 Is Property Still a Good Investment in Singapore?
Here’s a simple decision framework:
| Question | If Yes... |
|---|---|
| Is this your first home? | Consider BTO or resale HDB, take advantage of grants. |
| Are you buying for lifestyle + investment? | Look at well-located condos. Freehold or near MRT hold value better. |
| Do you want to leave a legacy? | Landed homes are scarce and preserve generational wealth. |
| Are you a business owner or seasoned investor? | Consider commercial property, but know your numbers. |
| Is your income tight or volatile? | Renting or waiting may be wiser until you're more financially stable. |
💡 Final Thoughts: Yes, But With Clear Purpose
Buying property in Singapore still makes sense—but only if it aligns with your personal goals, financial readiness, and time horizon. It’s no longer a guaranteed windfall like in the 2000s. Careful analysis, clear planning, and a longer investment mindset are essential in 2025.
In short:
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HDBs: Great for first homes and affordability
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Condos: Balance of lifestyle and returns
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Landed: Scarce, luxurious, and long-term in nature
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Commercial: Niche play with higher risks
Before making a move, run the math: consider mortgage interest, cash flow, rental yields, exit strategy, and worst-case scenarios.
“Don’t buy property just because everyone else is doing it. Buy it because it fits your long-term plan.”
📩 Thinking of upgrading, investing, or buying your first home? Talk to a financial advisor, property consultant, or banker to get a holistic view before diving in. It's a big decision—and the right move starts with clarity.
