SRI - Singapore Realtors Inc.

11 Apr 2025

Singapore Property Market: A Safe Haven Amid Global Trade Turbulence

Singapore’s property market has consistently demonstrated resilience in the face of global economic upheavals. From the Asian Financial Crisis (AFC) in 1997–1998 to the recent COVID-19 pandemic, history shows that periods of volatility have repeatedly paved the way for market rebounds and opportunity.

During the AFC, property prices corrected sharply amid a collapse in investor confidence. Yet, by 1999, prices stabilised, and buyer sentiment began recovering. Similarly, after the 2003 SARS outbreak, Singapore’s market rebounded swiftly, with new private home sales jumping 73.7% year-on-year by 2005. The 2008 Global Financial Crisis (GFC) triggered another slump, but a timely S$20.5 billion Resilience Package helped safeguard jobs and restore market confidence—leading to a remarkable 244.5% surge in new home sales by 2009.

The COVID-19 pandemic initially raised fears of prolonged market weakness. However, targeted fiscal aid, accommodative monetary policy, and the rapid reopening of borders supported a surprisingly swift recovery. New launches achieved healthy take-up rates, and prices rose despite initial restrictions.

Today, the challenge stems from escalating global trade tensions. Recent U.S. tariff hikes, including a cumulative 125% on Chinese imports and new levies on ASEAN exports, have prompted global manufacturers to rethink their supply chains. Although a temporary 90-day pause on steeper tariffs offers short-term relief, the broader uncertainty has already accelerated supply chain diversification. This realignment could benefit Singapore, which remains a neutral, well-connected logistics and financial hub.

Despite the turbulence, Singapore’s fundamentals remain strong.

Throughout multiple crises, a common thread has emerged: Singapore’s policy-driven stability. Timely interventions—such as the SARS Relief Package and the COVID-19 Support Package—have consistently cushioned market shocks. This is further reinforced by strict housing regulations, transparent frameworks, and a commitment to long-term affordability.

In short, while the global outlook remains volatile, Singapore continues to stand out as a beacon of opportunity, where long-term fundamentals shine through short-term storms.

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Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

04 Apr 2025

Kingsford Group Submits Top Bid for Lentor Gardens GLS Site

Kingsford Huray Development Pte Ltd submitted the winning bid of $429.2 million for the Lentor Gardens Government Land Sales (GLS) site, translating to $920 psf per plot ratio (psf ppr). This narrowly edged out the second bid of $905 psf ppr by just 1.7%, reflecting a competitive stance and long-term confidence in the site’s potential. Despite attracting only two bids, the results underscore that interest in Lentor remains firm, with developers taking a more measured approach amid prevailing market conditions.

The Lentor precinct has seen rapid transformation in recent years, progressively evolving into a vibrant residential hub. Developments such as Lentor Mansion, Lentoria, Lentor Hills Residences, and Hillock Green have collectively shaped a new housing cluster. The strong performance of Lentor Central Residences, with a 93% sales rate on launch weekend, further reinforces confidence that sensibly priced and well-positioned projects can still achieve good take-up.

One of Lentor’s key appeals lies in its suburban tranquillity paired with urban convenience. This is enhanced by the improving connectivity via Lentor MRT (Thomson-East Coast Line), proximity to schools, and access to nature. As infrastructure and amenities grow, the area is becoming a go-to option for families seeking modern housing in the northern region of Singapore.

Despite limited participation, the Lentor Gardens tender result is a signal that developers are still monitoring the precinct closely. Lentor’s steady evolution and growing popularity suggest that this area will remain on the radar of both homebuyers and investors. As the estate matures, Lentor’s transformation into a modern residential enclave underscores its potential to deliver quality homes that blend comfort, convenience, and connectivity.

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Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

02 Apr 2025

URA & HDB 1Q2025 Flash Estimates Signal Stable Market Conditions

In the private property sector, the price index rose by 0.6% in 1Q2025, moderating from the 2.3% growth observed in 4Q2024. This increase reflects a steady, yet disciplined demand environment supported by a stream of new launches such as The Orie, Elta, Parktown Residence, etc. These developments, spanning the Core Central Region (CCR), Rest of Central Region (RCR), and Outside Central Region (OCR), have appealed to a broad spectrum of buyers including upgraders, owner-occupiers, and long-term investors.

Notably, the RCR and OCR segments remained price-resilient thanks to a healthy flow of project launches. In contrast, the CCR experienced more subdued price movements due to limited new launches, although the debut of One Marina Gardens is expected to support future recovery. The strategic rollout of sites from the Government Land Sales (GLS) programme continues to maintain a stable absorption rate, preventing supply shocks while ensuring adequate buyer choice.

On the public housing front, the HDB resale market saw a moderated price increase of 1.5% in 1Q2025, following a stronger 2.6% growth in 4Q2024. The recalibration reflects the impact of expanding supply and evolving affordability measures. A key contributor was the significant Build-To-Order (BTO) and concurrent Sale of Balance Flats (SBF) exercise in the first quarter, which saw the launch of 5,032 BTO flats and 5,590 SBF flats. Of particular note, 4 in 10 units in the SBF launch were already completed, offering quicker move-in timelines and attracting strong interest from buyers.

The latest SBF exercise was the largest since November 2020, and ongoing policy enhancements—such as increased second-timer quotas, the expansion of the Deferred Income Assessment scheme, and the Family Care Scheme—have further improved access and affordability.

Going forward, over 50,000 new flats will be launched across Singapore over the next three years in areas like Woodlands, Bayshore, and Mount Pleasant. In 2025 alone, about 3,800 BTO flats with waiting times under three years will be rolled out, providing attractive alternatives to the resale market. These efforts are expected to ease demand pressures and ensure broader accessibility.

Together, these market trends highlight a well-calibrated approach toward ensuring sustainable housing development, balancing market demand with strategic supply enhancements in both the private and public segments.

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here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg