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