Buy Now or Wait? A Deep Dive Into Singapore’s Property Market in 2025
In 2025, Singapore’s property market sits at a crossroads.
Homebuyers and investors alike are asking:
Is now the right time to buy — or should you wait?
Between interest rate shifts, cooling measures, and evolving buyer demand, the answer is anything but simple.
This article breaks down the key trends, risks, buyer profiles, and forecasts — so you can make an informed decision, not an emotional one.
1. Six Major Shifts Reshaping Singapore’s Property Market in 2025
Drawing from expert insights and current data, here are the major changes influencing real estate decisions this year:
1. Resale HDB Prices May Be Peaking
Since 2020, resale HDB prices have climbed steadily. However, in 2025, signs of moderation are emerging. According to HDB’s Resale Price Index, quarterly growth has slowed from 4.8% in 2023 to just 1.5% in Q1 2025. Buyers are showing more caution, especially as BTO supply increases and affordability concerns mount.
2. Core Central Region (CCR) Sees Renewed Interest
Despite the 60% ABSD for foreign buyers introduced in April 2023, Singapore’s luxury property market — particularly in the Core Central Region (CCR) — has remained resilient. While foreign demand initially dipped, key freehold developments like Watten House saw strong uptake. Launched in November 2023, Watten House sold over 50% of its units during its private preview at an average of $3,230 psf, reflecting sustained appetite for premium CCR homes.
This trend continued into 2024 with launches such as Sanctuary@Newton, a boutique freehold development in District 11. Despite its smaller scale of just 38 units, it attracted strong interest from local buyers seeking exclusivity in a prime location — further reinforcing confidence in the CCR segment.
Looking ahead, the launch of Zion Road (Parcel A) in 2025 will serve as a critical benchmark for whether high-end CCR condos are entering a new phase of recovery. We’re keeping a close watch on this — and if you’re a serious buyer or investor, you should too.
3. Interest Rate Uncertainty is Impacting Buyer Sentiment
While the U.S. Federal Reserve has signaled a potential easing cycle, uncertainty still looms over interest rate trends in Singapore. In early 2025, fixed mortgage rates for private properties have dipped, with some lenders offering rates between 2.35% and 2.50%, particularly for energy-efficient homes. However, floating rates remain elevated, often above 3%.
This divergence is causing hesitation — especially among first-time homebuyers and HDB upgraders — who are unsure whether to lock in fixed packages now or wait for potentially better deals later in the year. As interest rates remain a moving target, many buyers are adopting a “wait-and-see” approach, slowing transaction volumes in certain segments.
4. Rising Land Costs Are Pushing Up New Launch Prices
Despite some signs of developer caution, such as the rejected Marina Gardens Crescent GLS bid in early 2024, new launch condo prices in Singapore remain elevated in 2025 due to persistent land and construction cost pressures. According to 99.co, private condo resale prices rose 6.1% year-on-year in January 2025, with Core Central Region (CCR) prices increasing by 2.8% month-on-month, reflecting ongoing demand in prime areas. Developers are expected to launch CCR projects at $2,400 to $2,600 psf, while narrowing price gaps between CCR and RCR are pushing value-conscious buyers toward the resale market.
5. HDB Upgraders Are More Cautious
A record number of HDB homeowners are reaching their Minimum Occupation Period (MOP) around 2025, creating a potential wave of upgraders entering the private property market. However, rising HDB resale prices, tighter loan conditions, and inflation concerns are prompting many to adopt a wait-and-see approach. This trend is slowing upgrader demand and may present opportunities for buyers ready to act in the current property cycle.
6. Demographics Are Reshaping Demand
Singapore’s aging population and declining birth rate are gradually shifting demand toward integrated, multi-generational, and smaller-unit housing. Developers are beginning to adjust their unit mixes and amenities accordingly.
2. Buy Now or Wait? It Depends On Who You Are
Your decision should depend on your current profile and goals. Here's how timing plays out across buyer segments:
First-Time Buyers
- Buy Now: If you qualify for grants, want predictability, or have been priced out of recent BTO launches.
- Wait: If you’re planning long-term and prefer more choices or lower interest rates down the road.
Tip: Focus on sustainable monthly repayments rather than short-term price movements.
Property Investors
- Buy Now: Look into undervalued resale opportunities, especially in mature estates or near upcoming MRT stations.
- Wait: If rental yields are compressing or you expect policy tweaks to impact ABSD or TDSR limits.
Watchlist areas: Greater Southern Waterfront, Bayshore, Jurong Lake District — all with long-term transformation potential.
3. What History Tells Us About Timing the Market
Timing the bottom of the market is notoriously difficult — even for professionals.
Data from URA shows that those who purchased during 2014–2017, when the market was relatively flat, still enjoyed significant appreciation by 2022. The consistent pattern? Long-term holding wins.
Trying to time the absolute bottom is like catching a falling knife. The most successful investors are those who buy well and hold long.
4. Singapore Property Outlook for 2025
Here’s a summary of what analysts and consultants are projecting this year:
- Private home prices: 4–7% increase expected, led by tight new launch supply
- Mortgage rates: Likely to ease slightly in the second half of the year
- Rental market: Stabilizing after a sharp run-up from 2021 to 2023
- BTO supply: Increased launches to meet demand, possibly cooling resale HDB prices
- Luxury segment: Slow but steady recovery in foreign interest, especially for freehold properties in CCR
5. So, Should You Buy Now or Wait?
Here’s a Quick Decision Guide Based on Your Situation:
Consider Buying Now If…
✔ You’ve found a unit that suits your needs and fits your budget
✔ You plan to hold the property for 8–10 years or more
✔ You’re confident in your job and income stability
✔ You can comfortably service your monthly mortgage
✔ You’re upgrading from an HDB with strong appreciation
Consider Waiting If…
❗ You believe prices may correct or interest rates may fall further
❗ You’re early in your career and want more time to grow savings
❗ You’re waiting for upcoming BTO launches or new private previews
❗ Your CPF and cash reserves are not yet sufficient for your ideal home
❗ You’re still uncertain about long-term location or property typ
Pro Tip:
Focus on affordability and long-term fit — not just market timing.
Final Thoughts from Zach Lin
Buying a property is one of the biggest financial decisions you’ll make. And while the temptation to time the market is strong, history and data show that clarity comes from fundamentals — not predictions.
If you’re financially ready and buying for the long term, don’t wait for a perfect price dip that may never come. Focus on value, location, and holding power — and the market will reward you in time.
For personalised guidance and tailored investment strategies, schedule a non-obligatory consultation with Zach Lin today.
Sources:
HDB Resale Price Index, Q1 2025
Business Times
99.co
URA
DBS Property Outlook
Channel News Asia
