Is Property Still a Good Investment in 2025?

Why Real Estate in Singapore Still Holds the Key to Long-Term Wealth

Meet Sharon and Desmond

In early 2024, Sharon and Desmond sold their BTO flat in Punggol after reaching their Minimum Occupation Period (MOP). They had plans to upgrade to a resale condo near their workplace in Serangoon, but interest rates were climbing and the news was full of cautionary headlines.

“Let’s wait it out,” they thought. “Prices might fall.”

But in 2025, they’re renting a 4-room flat for $3,400/month — while the resale condo they liked is now priced $30,000 higher. They've spent nearly $40,800 on rent and lost the chance to build equity.

Their story reflects a common truth: waiting for the "perfect time" can cost more than it saves.

The Big Question: Is Property Still Worth It in 2025?

Despite global headlines of recession fears and cooling economies, Singapore’s property market has shown resilience.

Let’s take a closer look at the facts:

Singapore's 2025 Property Snapshot

Private Residential Market

According to the Urban Redevelopment Authority (URA), private property prices rose 0.8% in Q1 2025, continuing the upward trend from 2024.

New launches in RCR and OCR remain popular, with developers pricing units cautiously.

Leading analysts like Savills and Huttons forecast a 3–7% growth in prices for the rest of the year, with steady demand from upgraders and investors who are now returning after the peak-rate scare.

Why it matters: Slow and steady growth signals a healthy, sustainable market — not a bubble.

HDB Resale Market

HDB resale prices rose 1.5% in Q1 2025, according to HDB - a tempered pace after years of sharp increases. Here, it indicates that there’s a key factor at play: supply is limited.

With fewer flats reaching MOP in 2025 (just 7,000 units, the lowest since 2014), supply remains tight. With fewer flats entering the resale market, competition for well-located units remains high, supporting price stability.

Why it matters: Even in public housing, scarcity and demand keep values resilient.

Rental Market Performance

Rents continue to grow moderately, with private non-landed rental index up 0.4% in Q1.

Strong leasing activity remains, especially in RCR and OCR areas where affordability meets accessibility. More tenants are renewing leases rather than buying, due to tighter loan conditions. At the same time, an influx of foreign talent and new work pass holders (e.g. ONE Pass, COMPASS framework) continues to drive rental demand.

As a result, rental income helps investors weather rate hikes while waiting for capital gains.

What Makes Singapore's Property Market So Resilient?

Government Intervention & Planning

Unlike volatile international markets, Singapore does not allow free-for-all development. The Government Land Sales (GLS) programme ensures land is released progressively.

Only 7,200 private units are expected to be completed in 2025, ensuring that supply doesn’t flood the market. This contributes to healthy price support and investors are not buying into oversupply.

Demand from Upgraders & New Families

HDB upgraders remain a significant force in the private market.

Young couples, newlyweds, and even singles (with policy changes) forms a solid buyer base. Even amid high interest rates, families are entering the market — but with more realistic expectations and stable financing.

Infrastructure Growth

New MRT lines like the Cross Island Line, business hubs (e.g. Punggol Digital District), and lifestyle towns (like Bayshore) are boosting connectivity and liveability. Properties near these developments tend to see higher appreciation and stronger rental demand over time.

Limited Land, High Livability

Singapore’s limited land supply and high urban planning standards ensure long-term desirability. That’s a recipe for sustained demand.

But What About Interest Rates?

Interest rates remain elevated, and monthly mortgage repayments have gone up. However:

Fixed rates have stabilised and some banks are offering competitive 2- or 3-year fixed packages.

As previously mentioned, homeowners are borrowing more prudently, staying within MSR (Mortgage Servicing Ratio) and TDSR (Total Debt Servicing Ratio) limits.

Buyers are factoring in long-term value, not just short-term rates.

Why It Still Pays to Own

Equity Growth:

Desmond and Sharon realised that owning would’ve allowed them to build equity, rather than seeing $40,800/year vanish into rent. This equity that was built eventually becomes a financial safety net for retirement, children’s education, or future investments.

Investment Properties Can Still Work:

Despite rising rates, well-located resale condos or older freehold units in mature estates are still yielding 3–4% rental returns.

As construction costs and land prices rise, newer launches will command higher prices, giving resale units room to appreciate.

A Retirement Plan in Disguise

Property in Singapore has been one of the most reliable forms of wealth accumulation.

Many retirees today are enjoying rental income from investment units, or have unlocked gains through right-sizing (e.g., from condo to HDB).

Even HDB upgraders who took action in their 30s now hold assets worth 7-figures.

Final Thought: Real Estate is Not About Timing, But Time

The best investors in Singapore's property market didn’t always “buy low.” They bought right — in good locations, with sustainable financing, and held for the long term.

In 2025, the fundamentals of Singapore’s property ecosystem remain strong:

• Well-managed supply

• Real local demand

• Resilient rental income

• Nation-wide infrastructure uplift

Whether it’s for your own stay or as an investment vehicle, real estate remains one of the most stable and effective tools to build wealth in Singapore.

Ready to explore your options?

Whether you're a first-time buyer, thinking of upgrading, or exploring property as a tool for wealth and retirement planning — let’s have a conversation.

No hard selling. Just honest advice, customised planning, and practical steps to help you move with confidence.

Because in Singapore, property isn’t just a roof over your head — it’s a foundation for your future.