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Singapore Property Market Responds to Cooling Measures and Global Economic Shifts

Singapore’s real estate market continues to be a focal point for both local and international investors. Recent trends indicate a market navigating the complexities of government cooling measures, global economic uncertainties, and evolving buyer preferences. This article provides a data-backed summary of key developments impacting Singapore’s property landscape.

Cooling Measures Impacting Sales Volume

In May 2025, new private home sales experienced a significant dip, falling 53% month-on-month. This decline is attributed to a pause in new launches, with only 20 units coming to market compared to over 1,300 in April. This slowdown reflects the impact of government cooling measures aimed at moderating price increases and speculative activity.

These measures include the Additional Buyer’s Stamp Duty (ABSD) and adjustments to Loan-to-Value (LTV) limits. ABSD, in particular, targets speculative investments by imposing higher taxes on subsequent property purchases. For instance, Singapore citizens buying their second residential property face an ABSD of 20%. The government has also reduced the loan limit for resale flats from 80% to 75% of their valuation, further influencing buyer behavior.

HDB Market and Government Support

The Housing Board (HDB) market remains a crucial segment, with the government actively managing supply and affordability. National Development Minister Desmond Lee noted that the public and private housing markets have started to stabilize, anticipating further easing as housing supply increases. More public and private housing units are expected to come on board, coupled with an increased number of HDB flats eligible for resale after their five-year minimum occupation period (MOP) from 2026.

To support families awaiting the completion of their Build-To-Order (BTO) flats, HDB has extended the Parenthood Provisional Housing Scheme until December, providing eligible families with a $300 monthly reimbursement. In the first quarter of 2025, HDB flat prices grew by an estimated 1.5%, a slower pace compared to the previous quarter.

Impact of Global Economic Factors

Singapore’s property market is also influenced by global economic factors, including trade tensions and interest rate policies. DBS Group has revised its Singapore property price growth estimates for 2025 to between 0% and 1%, compared to its previous projection of 1% to 2%. This revision reflects concerns about the ongoing US-China trade war and uncertainty surrounding global tariffs.

As a trade-dependent economy, Singapore is vulnerable to regional slowdowns. DBS believes that factors supporting sustained property price growth, such as employment rates and income growth, may be tested in an economic downturn. However, the research house also notes that housing demand is primarily driven by genuine housing needs, providing a stable demand base and making the market more resilient to economic shocks.

Luxury Market and Investment Trends

Despite the cooling measures and economic uncertainties, Singapore’s luxury property market remains robust. The Core Central Region (CCR) continues to attract high-net-worth individuals and family offices. While foreign cooling measures have slowed foreign investor activity, demand remains stable in this segment.

Singapore’s real estate market is viewed as a stable and resilient investment, attracting both local and global investors. Over the past five years, property prices have climbed steadily, driven by strong demand, limited land supply, and a well-regulated financial environment. Singapore ranks among the top investment destinations in APAC in 2025, with transaction volumes expected to recover amid anticipated rate cuts.

Evolving Preferences and Sustainable Housing

Buyer preferences are evolving, with increased demand for larger units and family-focused developments. Developers are tailoring new projects to meet these demands, reflecting a post-pandemic prioritization of space and versatility. Additionally, sustainable and tech-integrated housing developments are gaining popularity, with projects like Tengah’s smart eco-town showcasing environmentally friendly urban planning.

Key Takeaways for Singaporeans

• Cooling Measures Impact: Be aware that the cooling measures are designed to ensure a sustainable property market by curbing speculation.
• Government Support: HDB continues to provide support for Singaporeans, including the extension of housing schemes.
• Global Factors: The Singapore property market is affected by global economic factors which could affect investors’ decisions.

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