Residential Real Estate - Singapore

The Residential Real Estate market market in Singapore is estimated to reach a value of US$1.52tn by the year 2024.
It is projected to exhibit an annual growth rate of 2.68% from 2024 to 2029, resulting in a market volume of US$1.74tn by 2029.
In a global context, China is expected to generate the highest value in the Real Estate sector, reaching US$112.9tn 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.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

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.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate - Singapore

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Real Estate Type

Living Space

Methodology

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