Singapore Residential Real Estate Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 46.58 Billion |
| Market Size (2029) | USD 64.04 Billion |
| CAGR (2024 - 2029) | 6.57 % |
| Market Concentration | Low |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
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Singapore Residential Real Estate Analysis
The Singapore Real Estate Market size is estimated at USD 46.58 billion in 2024, and is expected to reach USD 64.04 billion by 2029, growing at a CAGR of 6.57% during the forecast period (2024-2029).
Singapore's housing market is defying the global trend of a slump, but the surge in prices is fueling debates on the city's rising cost of living. The market is witnessing pressure in two interconnected segments. State-owned housing, which is home to about 90% of Singaporeans, saw a 10% price surge in 2022, following a double-digit increase in 2022. While many homeowners aspire to upgrade to private condominiums, the prices there are rising at a similar pace.
Construction delays during the pandemic, a rise in remote work, and heightened interest in Singapore as a living, working, and investment destination, amid escalating U.S.-China geopolitical tensions, are contributing factors. Inflation, like in many other places, stands at 4.7%. This poses a challenge for a country that has traditionally managed mass housing effectively.
In June 2023, the Prime Minister announced plans to redevelop the city's sole horse racecourse, earmarking it for housing, including public homes. The government aims to complete around 40,000 public and private housing units in 2023, the highest level in five years. Additionally, Singapore has raised taxes on second-home purchases, particularly targeting private buyers. In a bid to bolster private housing supply, the Government Land Sales Programme's Confirmed List for 2H 2023 outpaced its 1H 2023 counterpart by 26%. This surge culminated in an aggregate confirmed supply of nearly 9,250 units for the entirety of 2023, marking the most significant annual offering in the last ten years.
Building on this momentum, HDB completed the construction of 20,064 BTO flats in 2022, with a projected completion of around 20,000 units in 2023. These completion rates stand out, especially when compared to pre-2019 figures, as the pandemic-induced construction delays led to a backlog. The trend extended to private homes, with a notable uptick in units receiving their Temporary Occupation Permit (TOP) and Certificate of Statutory Completion (CSC). For instance, Q3 2023 witnessed the completion of 8,517 units, a figure on par with Q2 2016.
These measures are intended to curb demand from both local and overseas investors. While the government claims that non-Singaporeans account for a modest 4% of private residential purchases on average over the past three years, it has doubled the stamp duty for foreigners to 60%. This move has positioned Singapore with the highest levy of its kind globally, as per sources.
Singapore Residential Real Estate Market Trends
Rise in the Residential Segment of the Singapore Real Estate Market
In contrast to the HDB resale market, the cost of renting an HDB property is rising steadily. In comparison to the total Rental Price Index of 145.22 points, the Rental Price Index for HDB apartments for Q1 2022 is 185.69 points.
The factors driving rental demand are still the same: singles and unmarried couples want their own space and solitude away from their families, and couples affected by a new round of BTO building delays consider renting as a temporary solution.
In 2022, there were 41 new private residential projects, with a total of 5,389 units. Based on the number of units, 22% are in the Core Central Region (CCR), 37% in the Rest of the Central Region (RCR), and 41% in the Outside Central Region (OCR). Along with a number of highly-anticipated projects, such as Gem Residences (located in the RCR) and Stars of Kovan (in OCR) lined up for launch, new sales transaction activity is expected to swing toward the mid-tier and mass-market segments.
Shift in Singapore's Home Loan Landscape Amidst Global Economic Uncertainty
Following the COVID-19 pandemic, the Federal Reserve (Fed) in the US implemented a series of interest rate hikes, impacting Singapore's home loan rates. This trend has persisted since 2022. However, with a waning inflation outlook and a gloomier economic forecast, the Fed has now shifted gears. Projections indicate the possibility of three to six rate cuts between 2024 and 2025, gradually easing Singapore's home loan interest rates.
As these rate cuts are expected to be gradual, their impact may not be immediately evident in the early months of 2024. Consequently, borrowers are likely to reassess their stance on fixed-rate home loans, especially in the latter half of the year.
In 2023, interest rates played a pivotal role in the real estate market of Singapore. While the Fed's rate adjustments were less aggressive than in 2022, they remained elevated throughout the year. By December 2023, the US Fed's interest rates stood between 5.25% and 5.50%. Fears of inflation, potential mortgage rate hikes, and an uncertain economic climate prompted some property seekers to temporarily withdraw from the Singapore market. While the prospect of cheaper home loans is enticing for buyers, investors are cautioned against disregarding Additional Buyer's Stamp Duty (ABSD) rates and reentering the market prematurely. Nonetheless, these rate reductions will likely bring relief to existing landlords, who have been grappling with declining rental rates.
Singapore Residential Real Estate Market Competitive Landscape
Singapore's residential real estate market is moderately competitive, with prominent domestic players having a presence in this sector and a sizeable number of foreign investors. Some of the major players are UOL Group Limited, CapitaLand, City Developments Limited, and many more. The housing market has an overall positive sentiment in the market, and investors are eyeing prime locations in the country. Moreover, post-pandemic, the country is expecting more upcoming projects offering real estate companies lucrative opportunities for investment and construction. With the increasing property prices, Singapore's residential real estate market is offering a competitive market to developers, buyers, and investors alike.
Singapore Residential Real Estate Market Leaders
UOL Group Limited
CapitaLand
City Developments Limited
Hongkong Land
Frasers Property
*Disclaimer: Major Players sorted in no particular order
Singapore Residential Real Estate Market News
- February 2024: GuocoLand, a prominent real estate developer, has recently unveiled its latest residential project, the Lentor Hills project, with prices commencing at USD 1530.34 per square foot. This 99-year leasehold development is a significant addition to GuocoLand's portfolio in the Lentor Hills estate, following the successful launches of Lentor Modern and Lentor Hills Residences. Notably, it also marks the fifth residential launch in the broader Lentor area, accounting for five out of the six state land sites sold thus far.
- February 2024: CapitaLand Investment Limited (CLI), a branch of Capitaland, has launched its latest private fund, CapitaLand Ascott Residence Asia Fund II (CLARA II), aiming to raise USD 600 million in equity. CLARA II will primarily target investments in serviced residences and coliving properties in prominent cities across developed Asia Pacific markets. This move comes as these markets witness a surge in demand for residential real estate. Notably, CLARA II marks CLI's second private fund dedicated to serviced residences and coliving, following the success of the USD 600 million Ascott Serviced Residence Global Fund (ASRGF).
- June 2023: UOL Group Limited (UOL) and Singapore Land Group Limited (SingLand) have jointly announced the launch of Pinetree Hill, marking the first significant residential project in Mount Sinai's exclusive private residential enclave in over a decade. The last residential development in this area was SingLand's The Trizon in 2009. Pinetree Hill comprises three 24-story towers, boasting a total of 520 units.
Singapore Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Real Estate Buying Trends - Socioeconomic and Demographic Insights
4.3 Government Initiatives and Regulatory Aspects
4.4 Insights on the size of real estate lending and loan to value trends
4.5 Insights on the interest rate regime for general economy and real estate lending
4.6 Insights on rental yields in the residential real estate segment
4.7 Insights on affordable housing support provided by government and public-private partnerships
4.8 Insights on real estate tech and startups active in the real estate segment (broking, social media, facility management, and property management)
4.9 Impact of COVID-19 on the real estate market in Singapore
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Economic growth and stability are significant drivers of demand for residential properties
5.1.2 Foreign investment in Singapore's residential real estate market contributes to demand for luxury properties and high-end condominiums
5.2 Market Restraints
5.2.1 Government Regulations and Cooling Measures
5.2.2 Land Constraints
5.3 Market Opportunities
5.3.1 Affordable Housing Initiatives
5.3.2 Urban Renewal and Redevelopment
5.4 Industry Association - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Buyers/Consumers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
5.5 Industry Value Chain/Supply Chain Analysis
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Apartments and Condominiums
6.1.2 Villas and Landed Houses
7. COMPETITIVE LANDSCAPE
7.1 Overview (Market Concentration Analysis and Major Players)
7.2 Company Profiles
7.2.1 CapitaLand
7.2.2 City Developments Limited
7.2.3 UOL Group
7.2.4 Hongkong Land
7.2.5 Frasers Property
7.2.6 Keppel Corporation
7.2.7 Allgreen Properties
7.2.8 OUE Limited
7.2.9 GuocoLand
7.2.10 Chip Eng Seng Corporation*
- *List Not Exhaustive
8. FUTURE OF THE MARKET
9. INVESTMENT ANALYSIS OF THE MARKET
10. APPENDIX
Singapore Residential Real Estate Market Scope
The real estate market refers to the sales of real estate services by entities (organizations, sole traders, and partnerships) that rent, lease, and allow the use of buildings and/or land. A complete background analysis of the Singapore real estate market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.
The Residential Real Estate Market in Singapore is Segmented by Type (condominiums and Apartments, Villas and Landed Houses). The Report Offers Market Size and Forecasts in USD for all the above segments. The Singapore real estate market size and forecasts in values (USD) for all the above segments.
| By Type | |
| Apartments and Condominiums | |
| Villas and Landed Houses |
Singapore Real Estate Market Research Faqs
How big is the Singapore Real Estate Market?
The Singapore Real Estate Market size is expected to reach USD 46.58 billion in 2024 and grow at a CAGR of 6.57% to reach USD 64.04 billion by 2029.
What is the current Singapore Real Estate Market size?
In 2024, the Singapore Real Estate Market size is expected to reach USD 46.58 billion.
Who are the key players in Singapore Real Estate Market?
UOL Group Limited, CapitaLand, City Developments Limited, Hongkong Land and Frasers Property are the major companies operating in the Singapore Real Estate Market.
What years does this Singapore Real Estate Market cover, and what was the market size in 2023?
In 2023, the Singapore Real Estate Market size was estimated at USD 43.52 billion. The report covers the Singapore Real Estate Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Singapore Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Singapore Real Estate Industry Report
Statistics for the 2024 Singapore Real Estate market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Singapore Real Estate analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
