- Singapore’s property market, closely tied to GDP and employment, is about to be tested amid a potential economic slowdown. Watch for shifts in unemployment rates and housing affordability.
- Property price growth revised to 0-1% (from 1-2%). Relative value seen in CCR, private resale, and landed property segments. Volumes should continue to track estimates
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Facing its next big test.
- Singapore’s resilient property market, which has weathered past economic storms, is now facing its next big test. The ongoing US-China trade war and policy uncertainty around US President Trump’s on-off global tariffs are expected to weigh on global growth. As a trade-dependent economy, Singapore will likely feel the strain.
- DBS economists recently downgraded Singapore’s 2025/2026 GDP growth forecast to 2.0%/1.8%, with further downside if trade tensions persist. One key risk is the effect on employment – a major driver of property demand and price.
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Watch unemployment and affordability trends; relative value seen in CCR properties, private resale, and landed properties.
- With current government measures in place to curb speculation and limit foreigner participation, the private property market is largely supported by upgraders and Singaporean/permanent resident households.
- Since 2020, property prices have outpaced income growth. The average property price-to-median income ratio has risen to 14.6x, higher than the 15-year average of 13.6x.
- With the loan-to-value limits and new launch prices hitting S$2.2k psf or S$2.0mil per unit on average, we observe that
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