As the ongoing US-China trade war and global tariff uncertainties continue to loom, Singapore’s property market is poised for a slowdown in price growth. The recent revision by DBS, which has lowered the forecast for Singapore’s property price growth in 2025 to a modest 0%-1% from the previous estimate of 1%-2%, underscores the shifting landscape. This adjustment reflects broader economic challenges that are expected to weigh heavily on the real estate sector.
In the first quarter of 2025, the Overall Property Price Index recorded a growth of just 0.6%, a stark decline from the 2.3% increase observed in the previous quarter. This deceleration in price growth signals potential vulnerabilities within the market, exacerbated by external factors such as trade tensions and rising global tariffs. As these uncertainties persist, investor confidence may wane, further contributing to a cautious sentiment in the property landscape.
The employment rates and income growth in Singapore, both critical supports for the property market, are currently under threat. With the unemployment rate reaching 3.1% as of February 2025, there are rising concerns that this figure may increase in the coming months. A higher unemployment rate not only impacts consumer confidence but also reduces the purchasing power of potential homebuyers, thereby affecting demand within the property market.
Moreover, the affordability of homes in Singapore has become a pressing issue. The average private home price-to-income ratio surged to 14.6 times in 2024, surpassing the historical average of 13.6 times. This rising ratio indicates a growing gap between home prices and incomes, leading to increased affordability concerns among buyers. As the cost of homeownership escalates, many prospective buyers may find themselves priced out of the market, leading them to reconsider their housing options.
Additionally, the trend among HDB upgraders has shifted significantly. Historically, around 50% of these upgraders would purchase new launches, but this figure has plummeted to just 22% in 2024. This marked decline points to a growing tendency for buyers to gravitate towards the resale market, where prices may be more aligned with current economic conditions and individual financial circumstances. High prices in new launches are steering many away from these developments, further reflecting the changing dynamics in buyer sentiment.
As Singapore’s property market faces these challenges, the implications for future growth are increasingly uncertain. The combination of external economic pressures, rising unemployment, and heightened affordability concerns are all factors contributing to a more cautious outlook.
With the anticipated slowdown in price growth, stakeholders within the property market are advised to remain vigilant and adaptable as they navigate this evolving environment. The next few years will be critical in determining how the market responds to these pressures and what strategies will be necessary to sustain demand in an increasingly complex landscape.
NEW CONDO LAUNCH: RIVER GREEN
River Green is an exciting new condominium development in Singapore, positioned in a prime area to attract potential buyers with competitive pricing.
The project aims to address affordability concerns for HDB upgraders amidst a slowing property market. River Green‘s launch date is eagerly anticipated, and interested buyers can explore the River Green Floor Plan and project details through the available River Green E-brochure.
This development is part of a strategic move to leverage renewed interest in Core Central Region properties.
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News Source: Edgeprop
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