Residential Real Estate - Singapore

Singapore

The Residential Real Estate market market in Singapore is estimated to reach a value of €1.41tn by the year 2024.
It is projected to exhibit an annual growth rate of 2.94% from 2024 to 2029, resulting in a market volume of €1.63tn by 2029.
In a global context, China is expected to generate the highest value in the Real Estate sector, reaching €104.7tn in 2024.
The residential real estate market in Singapore is experiencing a surge in demand due to the government's favorable policies for foreign investors.

Key regions: Europe, Brazil, France, Asia, United States

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Analyst Opinion

The Residential Real Estate market in Singapore has been experiencing significant changes and developments in recent years.

Customer preferences: Singaporeans have always prioritized owning their own homes, and this preference has remained strong over the years. However, there has been a shift in customer preferences towards smaller and more affordable homes. This is due to various factors such as rising home prices and tighter mortgage regulations. Additionally, there is an increasing demand for properties located near amenities and transportation hubs, as convenience has become a key consideration for homebuyers.

Trends in the market: One of the notable trends in the Singapore Residential Real Estate market is the rise of integrated developments. These developments combine residential, commercial, and retail spaces, offering residents the convenience of having everything they need within close proximity. This trend has gained popularity due to the increasing demand for work-life balance and the desire for a more integrated living experience. Another trend in the market is the growing interest in sustainable and eco-friendly properties. Singaporeans are becoming more conscious of environmental issues and are increasingly seeking homes that are energy-efficient and environmentally friendly. Developers are responding to this trend by incorporating green features into their projects, such as solar panels, rainwater harvesting systems, and green spaces.

Local special circumstances: Singapore is a small and densely populated country, which presents unique challenges for the Residential Real Estate market. Land scarcity is a major factor that drives up property prices, as there is limited space for new developments. This has led to the government implementing measures to control property prices and ensure affordability for Singaporean citizens. Another special circumstance in Singapore is the presence of public housing, known as Housing Development Board (HDB) flats. These flats are heavily subsidized by the government and are a popular choice among Singaporeans. The availability and affordability of HDB flats have a significant impact on the private residential market, as they provide an alternative for homebuyers who are unable to afford private properties.

Underlying macroeconomic factors: The Residential Real Estate market in Singapore is influenced by various macroeconomic factors. One of the key factors is economic growth, as a strong economy leads to higher demand for properties. Singapore's stable economy and attractive business environment have made it an attractive destination for foreign investors, which has contributed to the demand for residential properties. Another factor is interest rates, as they affect the affordability of mortgages. Low interest rates make it more attractive for individuals to take on housing loans, which can stimulate demand in the residential market. Additionally, government policies and regulations play a crucial role in shaping the market, as they can impact factors such as property prices, loan eligibility, and foreign ownership. In conclusion, the Residential Real Estate market in Singapore is evolving to meet the changing preferences of customers. The rise of integrated developments and sustainable properties reflects the growing demand for convenience and environmental consciousness. Land scarcity and the presence of public housing are unique circumstances that shape the market, while macroeconomic factors such as economic growth and interest rates also play a significant role in driving the market's development.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.