Singapore's Property Market Tilts to Buyers
Singapore's property market is showing signs of a shift, with the government introducing no new cooling measures in its latest budget. An analysis suggests the HDB resale market is tilting toward buyers due to increased supply, while new AI hub investments are expected to drive up rental demand in specific adjacent neighborhoods.
The government's decision to hold back on new property curbs follows four rounds of cooling measures implemented since December 2021. The most recent significant intervention was in August 2024, when the loan-to-value limit for HDB loans was tightened from 80% to 75%. The HDB resale market is experiencing a notable slowdown in price growth, with forecasts for 2025 at 3% to 4.5%, a sharp drop from the 9.7% increase seen in 2024. The resale price index remained flat in February 2026, with transaction volumes falling 29% month-on-month. A surge in supply is a key factor, with nearly double the number of HDB flats expected to reach their five-year Minimum Occupation Period (MOP) in 2026 compared to 2025. This influx of around 13,840 newly available resale flats is expected to increase listings and give buyers more negotiating power, particularly in towns like Punggol, Queenstown, and Tampines. The private property market is seeing a similar trend of moderation, with price growth slowing and transaction volumes declining. The Urban Redevelopment Authority's (URA) flash estimates for the second quarter of 2025 showed private home price growth slowing to 0.5%, down from 0.8% in the first quarter. Looking ahead, the government's strategic focus on Artificial Intelligence is set to create new property hotspots. The planned establishment of a large-scale AI park in One-North is expected to attract a high-income talent pool, driving rental demand and supporting long-term property values in adjacent areas like Queenstown and Dover.
