Singapore Real Estate Market Size

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.