Are you holding back from buying property in Singapore, fearing a potential price drop? Is this the right moment to enter the market, or is it wise to wait for a “Singapore property crash”?

This article aims to provide you with an insightful understanding of the current market dynamics, helping you make informed decisions as you consider your investment options.

The Current Landscape: Are Property Prices Dropping?

Recent data indicates that Singapore's private residential property prices have shown signs of cooling down. In the third quarter of 2024, the Urban Redevelopment Authority (URA) reported a 1.1% decline in private home prices, marking the first dip in over a year.

This shift comes after a period of steady growth, where prices had risen by 1.4% in the first quarter of 2024.

Property price index comparison

The index for Q3 2024 is a flash estimate                                                                                                    Source: URA

What’s Causing the Decline?

• Rising Interest Rates: With rising global interest rates, mortgages have become more expensive, impacting affordability for some buyers and cooling demand in certain segments.
  
  
• Government Cooling Measures: Increased ABSD (Additional Buyer’s Stamp Duty) and stricter loan limits are pushing some investors to rethink their purchasing power. The ABSD rate on second properties, for example, has pushed certain investors to explore overseas options. But Singapore’s market resilience lies in these very cooling measures—they act as safety valves, stabilizing prices rather than triggering a “property crash.”
  
  
• Limited Land Supply: Singapore’s land scarcity and its emphasis on quality, sustainable developments mean supply remains relatively limited. This factor continues to support property prices even when demand cools.
  
  
• Market Sentiment: A general sense of uncertainty regarding global economic conditions has made buyers more hesitant. Many are waiting for clearer signals before committing to significant investments

The market has experienced fluctuations before, notably during the global financial crisis when prices fell sharply. However, Singapore's property market has consistently demonstrated resilience, bouncing back stronger after downturns.

Key Historical Trends

• Past Crashes
  
  The most notable declines occurred between 2014 and 2017, where prices dropped by approximately 10% due to stringent government measures aimed at curbing speculation.
  

• Recovery Phases
  
  Following these declines, the market rebounded robustly, with prices increasing nearly 50% from mid-2017 to 2023.
  

Will Property Prices Drop in 2025?

With recent launches above 2000 psf, Woodlands has triggered strong signals to developers, leading to the current situation of a buffet of launches.

With prices of Government Land Sales (GLS) at elevated rates for prime locations, and the cost of labor and materials having risen by 40%, developers' margins are at an all-time low.

Moving forward into 2025, we can expect prices for new launches to start from 2000 psf for most Rest of Central Region (RCR) properties, close to 3000 psf for Outside Central Region (OCR), and 5000 psf for prime and Core Central Region (CCR) properties.

As most transactions are primarily conducted by Singaporeans, I don't believe the new launches will experience high take-up rates, as they are all competing against each other.

The CCR and prime segments will likely remain muted; however, it will be interesting to observe the RCR and OCR markets.

Beyond this, the resale market may be a more prudent option. Based on my analysis of Stars of Kovan and Compass Heights (watch the video below to learn more), the capital gains are almost equivalent. If the resale location is good, it could be a viable choice.

Is it Expensive to Buy a House in Singapore?

Yes, it’s no secret that purchasing property in Singapore is costly. But with high costs come high rewards—historically, Singapore real estate has delivered resilient long-term growth.


For first-time buyers, this means that while the initial outlay may be steep, the potential for capital appreciation and rental income is strong.


If you’re a first-time buyer, now might be your golden opportunity. Waiting on the sidelines for a major “property crash” could mean missing out on an investment in a stable, resilient, and globally attractive market.

Why Singapore Property Remains a Smart Investment in 2024 and Beyond

In a world of uncertainty, Singapore remains an investment safe haven. The government’s ongoing efforts to ensure stability and sustainability have created a market that, while not immune to short-term fluctuations, is highly resilient in the long term.


If you’re weighing the pros and cons of buying property in Singapore, here are some reasons why it’s still a compelling investment:

• Long-Term Appreciation: Singapore’s historical property price trend has been upward, even if punctuated by short-term corrections. This long-term growth is attractive to investors looking to build wealth.
  
  
• Stable Rental Market: Rental demand remains robust, especially for properties in popular districts and those near MRT stations, schools, and business hubs. Even with a slight cooldown expected in rental prices by 2025, the rental market is expected to remain steady.
  
  
• High Occupancy Rates: Singapore’s private and public housing sectors have one of the highest occupancy rates globally. This stability supports consistent rental returns, making it ideal for investors seeking a steady income stream.

Is Private Property Still a Good Investment in Singapore?

Absolutely. Private property in Singapore offers unique advantages, from higher rental yields to exclusivity and potential capital appreciation. With government cooling measures ensuring the market doesn’t overheat, private property remains a viable long-term investment—especially in popular areas like the East Coast, Orchard, and the new Downtown Core developments.

Assessing Your Readiness to Invest

Before jumping into the market, it’s essential to assess your readiness. Here are a few steps to help you decide:

• Evaluate Your Finances: Assess your current financial standing. Calculate your budget, including stamp duties, legal fees, and possible renovation costs. Remember, this is a long-term commitment.
  
  
• Understand Loan Eligibility: Explore your mortgage options and get a sense of your monthly repayments. Rising interest rates mean higher monthly payments, so be prepared.
  
  
• Define Your Investment Goals: Are you buying for rental income, capital appreciation, or perhaps a second home? Clarifying your goals will guide your choices and help you navigate the market more effectively.
  
  
• Seek Expert Advice: Consulting with a realtor who understands the market deeply—like myself—can make a world of difference. A trusted advisor will help you find properties that match your goals and navigate the finer details, from loan eligibility to market timing.

Make the Smart Move Today

Don’t let this opportunity pass you by. Reach out to me now to discuss your options.