Click the link below to download the EdgeProp app for free!
New Property Cooling Measures and HDB Resale Market Among Top Discussion Points at EdgeProp’s Property Market Outlook Event
The property market in Singapore is at a pivotal point with the possibility of new cooling measures, incoming housing supply from government land sale (GLS) sites and Build-To-Order (BTO) launches, as well as the impact of Budget 2025 announcements. These topics were the main points of discussion at EdgeProp Singapore’s Property Market Outlook event held on Sunday, Feb 16.
A panel of industry experts, including Alan Cheong, executive director of research and consultancy at Savills Singapore; Wong Xian Yang, head of research, Singapore and Southeast Asia at Cushman & Wakefield; and, Song Seng Wun, Singapore economic advisor at CGS International, shared their insights on the current market conditions. The panel discussion was moderated by EdgeProp Singapore CEO Bernard Tong.
The event was held at Elta sales gallery, the upcoming 501-unit project jointly developed by MCL Land and CSC Land Group. The sales gallery opened for public preview on Feb 7.
Highlights of the discussion
In January, the government indicated that it was “not adverse” to implementing more property cooling measures and that it was not yet time to roll back on existing measures. Developers sold 1,083 new private residential units (excluding executive condos) last month, a 256% increase compared to the same period in the previous year.
If new cooling measures are implemented, they are likely to apply uniformly across the residential market, says Cheong. The panel discussed the possibility that new measures could also target the HDB resale market.
According to Wong, the HDB resale market serves as the “floor” of the housing market in Singapore, and a surge in price growth there will add upward pressure on prices in the private housing segment. He adds that the government may consider adjusting the seller’s stamp duty (SSD) and introduce tougher loan restrictions to cool the market.
On the other hand, Tong mentioned that the government intends to inject a strong pipeline of GLS and BTO supply into the market to meet housing demand. The 1H2025 GLS programme consists of 10 sites on the Confirmed List, which could potentially yield 5,000 new homes, and HDB plans to offer 19,600 BTO flats in 2025.
Under the new BTO classification, newly launched Prime and Plus BTO flats will take about 14 years to enter the resale market, and the impact from these developments on prices will only be felt much later on, says Cheong. Wong adds 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. “In terms of prices, project completions, rather than GLS supply, are more likely to affect prices,” says Wong.
However, all three panelists acknowledge that the successes in the new launch market indicate strong buyer confidence for projects hitting the market this year. Elta drew about 4,500 visitors during the first three days it was open to the public. Other new launches so far this year include The Orie and Bagnall Haus, which experienced strong selling rates of 86% and 63% at launch, respectively.
Outcomes of Budget 2025 and its potential impact on the property market
The panel also discussed Budget 2025 and its potential influence on the property market this year. According to Song, Singapore has experienced a relatively strong economic recovery since the Covid-19 pandemic-induced recession. With 2025 being an election year, he believes that Singaporeans can anticipate more handouts financed by government surpluses resulting from healthy government revenue collections in the past three years.
The panel also fielded questions from the audience. Some participants questioned if the residential property market is currently in a “euphoric” phase.
Cheong commented that the sense of market exuberance will likely subside as developers strategically time the launch of new projects. He adds that several launch-ready projects are located in neighbourhoods 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.
Investors also enquired about the rental market this year, which has slowed since its peak two years ago. According to Cheong, market data indicates that while the total number of expatriates in Singapore has decreased over the past year, 2024 saw an uptick in the volume of rental transactions. He adds that declining rents likely motivated some renters to stop flat-sharing and to find their own accommodation. However, this was offset by layoffs in technology and finance companies this year, which will likely slow down rental price growth.
At the event, a session of EdgeProp’s Master Plan Master Class was presented by Tong, who covered upcoming transformation plans in Clementi and Jurong East.
He noted that the completion of the second phase of the Cross Island Line (CRL) will extend the MRT network and create new interchange stations. “Historically, MRT interchanges tend to have a positive impact on surrounding property prices,” says Tong.
Transformation plans in Clementi include the redevelopment of Clementi Stadium and the installation of more than 6.6km of cycling paths throughout the area. Housing demand in Clementi is also expected to benefit from the progressive development of the Jurong Lake District, and the new opportunities being created in the nearby Tuas megaport, Tuas Biomedical Park, Jurong Island, and Jurong Innovation District.
Data assembled by EdgeProp Singapore shows that the average age of existing condos in Clementi is approximately 17 years. Tong observes that recent new projects in Clementi have reaped strong capital gains over the years. This includes Clavon (24% appreciation since launch) and The Clement Canopy (43% price growth since launch) — both projects are adjacent to Elta.
EdgeProp Singapore has a suite of property tools that can help owners, buyers, and sellers understand market trends and pricing. These tools include HDB resale prices, analytics of profitable transactions, and information on upcoming GLS sites. Check out the latest listings for Elta properties on EdgeProp.
There are several significant benefits to consider when investing in a condominium in Singapore, with one of the most notable being the potential for capital appreciation. This is largely due to Singapore’s advantageous position as a global business hub, combined with its robust economic stability, which consistently drives a high demand for real estate. As a result, the property market in Singapore has witnessed a consistent growth in prices, particularly in prime locations where condos are highly sought after. Investors who strategically enter the market and hold onto their condos for an extended period can reap significant profits through capital gains. The addition of a condo can further amplify these potential gains.