Morning Wrap | Singapore Residential Property Market to See Modest Growth in 2025

The Singapore residential property market is expected to see modest growth in 2025, driven by a combination of strong local demand, government policies, and foreign investment. According to recent data, the market is projected to grow by 4.5% in 2025, with average rents for private condominiums in prime districts ranging from SGD 4,000 to SGD 7,000 per month and rental yields generally falling between 2.5% to 3.5% annually.



The market's growth is influenced by various factors, including government regulations, limits on foreign buyers, and property taxes. Regulatory factors, such as government cooling measures and foreign buyer restrictions, shape the market dynamics by stabilizing the housing market, curbing speculation, and promoting sustainable growth. These measures aim to maintain a balanced market and ensure that residents have access to housing.

Sustainable development and green initiatives are also expected to play a significant role in the real estate sector in 2025. The government is promoting sustainable development and green initiatives in the real estate sector through progressive taxes and energy-efficient designs. This focus on sustainability is driven by a growing demand for eco-friendly and smart homes, as well as the government's investment in sustainable developments like the Greater Southern Waterfront and Jurong Innovation District.



In conclusion, the Singapore residential property market is expected to see modest growth in 2025, driven by strong local demand, government policies, and foreign investment. Regulatory factors, sustainable development, and green initiatives will continue to shape the market dynamics, ensuring a balanced and sustainable growth trajectory. Investors and homebuyers should stay informed about these trends and factors to make informed decisions in the Singapore property market.