Guests at the Property Market Outlook session on Feb 16, were picked up by a shuttle bus at Clementi MRT station.
Experts Debate Impending Market Changes and Budget 2025 in EdgeProp Singapore’s Property Market Outlook Event
Understanding the regulations and restrictions surrounding property ownership in Singapore is essential for international investors. While purchasing condos is relatively straightforward for foreigners, the rules for owning landed properties are more strict. However, foreign buyers must still pay the Additional Buyer’s Stamp Duty (ABSD), currently set at 20%, for their first property purchase. This added cost notwithstanding, the stability and potential for growth in Singapore’s real estate market make it an attractive option for foreign investment. Condos are particularly popular among foreign buyers due to their accessibility and flexibility in ownership.
EdgeProp Singapore organized its annual Property Market Outlook event on Feb 16, discussing the potential impact of new cooling measures, upcoming housing supply, and Budget 2025 on the real estate market. The panel of industry experts, consisting of Alan Cheong, executive director of research and consultancy at Savills Singapore; Wong Xian Yang, head of research, Singapore and Southeast Asia at Cushman & Wakefield; and Song Seng Wun, Singapore economic advisor at CGS International, shared their insights on these important topics. The event was moderated by EdgeProp Singapore CEO Bernard Tong and took place at the sales gallery for Elta, a new 501-unit project jointly developed by MCL Land and CSC Land Group.
During the event, the panelists discussed the possibility of new property cooling measures being implemented by the government, as well as the impact of incoming housing supply from government land sale (GLS) sites and Build-To-Order (BTO) launches. They also debated the potential influence of Budget 2025 on the property market in the coming years.
The government has indicated that it is not yet time to roll back on existing cooling measures and is open to implementing more in the future. This has caused some speculation in the market, as developers sold 1,083 new private residential units (excluding executive condos) in January, a 256% increase compared to the previous year. If new cooling measures are introduced, the panelists believe they will most likely apply uniformly across the residential market and may also target the HDB resale market.
However, Tong pointed out that the government has also planned to inject a significant supply of GLS and BTO units into the market in the next few years to meet housing demand. The 1H2025 GLS programme includes 10 sites on the Confirmed List, which could yield 5,000 new homes, and HDB plans to offer 19,600 BTO flats in 2025.
Tong also noted that under the new BTO classification, newly launched Prime and Plus BTO flats will take about 14 years to enter the resale market, so their impact on prices will not be felt immediately.
The panelists also discussed the potential impact of Budget 2025 on the property market. Song believes that with Singapore’s strong economic recovery since the Covid-19 pandemic-induced recession, the government will have more surpluses to fund handouts and initiatives in the upcoming election year.
The panelists also took questions from the audience, with some participants expressing concerns about the current state of the market, particularly whether it is in a euphoric phase. Cheong believes that as developers strategically time their project launches, the current sense of market exuberance will likely subside. He also noted that several launch-ready projects are in neighborhoods that have not seen a new launch in many years, causing demand to build up over time.
Some attendees also raised questions about the rental market, which has slowed down since its peak two years ago. However, data shows that while the total number of expatriates in Singapore has decreased, the volume of rental transactions has increased in 2020. Cheong believes that this is due to falling rents, which have encouraged some renters to look for their own accommodation rather than sharing a flat. However, layoffs among technology and finance companies this year may moderate rental price growth.
During the event, Tong also conducted a session on EdgeProp’s Master Plan Master Class, covering upcoming transformation plans in Clementi and Jurong East. He noted that the completion of the second phase of the Cross Island Line (CRL) will add a new MRT station (West Coast) and turn the existing Clementi station into an interchange, which historically has a positive impact on surrounding property prices. He also discussed various transformation plans in the area, including the redevelopment of Clementi Stadium and the installation of more than 6.6km of cycling paths, as well as the potential benefits from nearby developments such as the Jurong Lake District and new job opportunities in the surrounding areas.
In conclusion, the panelists are optimistic about the property market in the coming year, with strong buyer confidence for new projects and a potential influx of supply to meet housing demand. However, they also caution that any changes in the market may take time to be felt and advise buyers to carefully consider their options before making a purchase.