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Key Driving Factors for Singapore’s Property Market

Singapore Property Price Trend

The fears and uncertainty amidst this pandemic are real and concerning to many – especially new property investors who are wary of all the unknowns.

With less than positive news about the economy and unemployment rates on the rise, it is understandable why many new property investors are fearful of getting into the market now.

On that note, I felt it would be a great opportunity to share insights on some of the key driving factors for Singapore’s Property Market.

Using numbers, statistics, and trends, I hope to shed some light on why I think there is a much brighter outlook on the horizon.

Table of Contents

Property Price Trend

Singapore Property Price Trend

If you are believer in trends, looking at this chart on Singapore property market will help to put your mind at ease.

Like any other cycles, we see the private residential property price index go through its fair share of dips and peaks.

Remember the major economic upheaval in the 1997 Asian financial crisis, and the Global financial crisis of 2007-2008?

They are but blips in the bigger picture. The key here, however, is the clear overall uptrend.

For property investors who are in it for the long run, this strong growth trajectory projected into the future will give a much-needed confidence boost.

The common warnings during any economic crisis in the past and now, will be about how the property market will enter a glut and stagnate.

This fear-mongering will definitely scare off property investors who have not done their homework or are looking for a quick win. But the trends show otherwise.

Who do you trust? The real numbers or someone’s opinion?

Supply and Demand

Familiar with the common economics principal of supply and demand? We explained this in detailed in our previous article What Does It Mean To Buy Property At The Right Time.

“If there is a decrease in supply of goods and services while demand remains the same, prices tend to rise to a higher equilibrium price.”

How does this affect the Singapore property market you may ask?

Let us take a look at this chart which shows the completed supply of private non-landed properties from 2015 till now.

property demand and supply

The dotted line represents the average past 10 years of completed private non-landed properties which is 13,855 units.

A quick glance at the chart shows us that from 2015-2016, there was a clear abundance of supply, whereas in 2019 and 2020 there is a significant under supply compared to the average.

How does this translate into property prices?

Property price trends show us that in 2017-2019, as the completed property supply numbers came down, prices started to appreciate significantly.

A market correction for the under-supply in the recent years. This is a trend that is likely to continue, at least into the immediate future due to the under-supply expected this year and next.

Combined with the effects of a recovering economy post-pandemic in the near future, this could fuel new heights of property purchases in the next couple of years.

HDB Upgraders

Do you have a relative or friend who have their eyes on upgrading to a private non-landed property?

Chances are that you will know someone like that. In Singapore, many of us worked hard and constantly upgrade ourselves.

Hence, upgrading our homes are also a common phenomenon.

Especially when they are in their mid-30s or 40s, have more disposable income on hand and are looking for a second home befitting of their new economic status.

This is not just a hypothesis. The numbers reflect this too.


The chart above shows how the trend of increasing numbers of HDB flats reaching their minimum occupation period (MOP).

Which means they can now purchase a second home, and the trend is that more owners are making the upgrade.

Our numbers show us that more than 3 times the number of BTO owners are looking to upgrade to a private non-landed property.

So, what does this mean for the future?

The chart shows us that the numbers of HDB flats reaching their MOP are going to maintain at this all time high, over the next 3 years.

This is due to a large supply of BTO from 2012 – 2014. This means we can expect a lot more of these HDB upgraders on the lookout for their second home.

With a potential demand boost, combined with the under supply we discussed earlier, we can expect a significant appreciation and growth in property prices.

Perfect for the property investor who has already gotten a slice of the pie.

In fact, based on a Morgan Stanley Research report, 46% of private home sales are made up of these HDB upgraders we have been talking about.

Additional Driving Factors currently in play

Singapore’s cooling measures

As we know, cooling measures in Singapore kicked in since January 2013.

It has proven to be effective as we have not seen significant numbers of homeowners defaulting on their mortgages.

Cooling measures such as the TDSR (Total Debt Servicing Ratio), Mortgage Serving Ratio (MSR), Additional Buyer Stamp Duty (ABSD) and Seller Stamp Duty (SSD) have changed the landscape of property investment and behaviours of property investors alike. 

Singapore cooling measures

Instead of earning quick profits through property speculation, investments are considered as longer-term commitment with dedicated analysis and studies of its future potential gains.

New Launches attractive discounts with virtual viewings in play


It is no secret that everyone loves star-buys! With virtual viewings during this period, comes new launch discounts that is well-timed and handy for genuine buyers.

There is no doubt that an actual show flat will provide an up-close sense of the unit, virtual viewing can also offer most buyers a good feel of the house.

Some buyers would not mind purchasing despite not seeing the actual unit.

Other than its tangible factor and interior visualization at the showroom, most of the decision-making factors for example, the unit’s facing, floor level, layout, facilities can be made without being physically at the show flat.

Coupled with discounts thrown in during this period, buyers are getting great deals too.

Besides, virtual viewings and tours are becoming a norm since Circuit Breaker in Singapore.

It is generally welcomed and accepted by most who are working from home, especially with kids.

Temporary Relief Measures


Temporary relief measures were announced as part of the Singapore’s budget, in early May 2020, to assist married couples and property developers:

ABSD remission period is extended for the sale of matrimony homes

Singaporean couples are typically given six months period, upon purchasing their 2nd matrimonial home, to sell their first matrimonial home.

For completed property, it will start from the date of exercise. For uncompleted property, it will either start from Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC), whichever is earlier.

So, for couples who has failed to qualify for ABSD refunds from Feb 2020, this is excellent news!

They are no longer required to rush and put up their first matrimonial home for sale – no panic selling.

Extension of sale timelines for Property Developers

Similarly, developers are compelled to sell all units within a strict time frame. Otherwise, they will be confronted by either ABSD or Qualifying Certificate (QC) penalties.

With the extension of timelines, it allows market conditions to stabilize naturally. In turn, prevent unnecessary panic selling by developers which is very likely to create upheaval and a detrimental cascading effect in the market.

As a result, we may be able to see more discounts given by developers.

Mortgage deferment scheme

Mortgage deferment scheme

The Monetary Authority of Singapore (MAS) also announced in March 2020, a relief measure for homeowners to defer their home loan repayment and insurance premium payments.

With this flexibility of deferment, property owners are secured, and property market is kept stable – again, no panic selling of homes during this challenging period.

Foreign interest in the Singapore Market


Foreign interest from Mainland Chinese has been the leading foreign buyers in recent years and they may just continue to remain at the top.

While China’s economy is likely to experience a slowdown this year, there are still growth in specific sectors such as IT, biomedicine, and healthcare.

Not to mention the recent global lockdowns has seen an explosive growth and surge in production and consumption of e-commence goods – China being the powerhouse in this area.

Hence, we expect Chinese buyers from these thriving sectors to buy homes in Singapore. Some may prefer to redirect their refunds overseas while their currency continues to depreciate.

Recent episodes in Hong Kong will also serve to as an encouraging factor for Chinese buyers to consider Singapore’s property market.



I shared more about other key driving factors like lower interest rates, developer’s incentives due to new policies on ABSD, under-priced properties and more… in our popular article What Does It Mean To Buy Property At The Right Time.

In the midst of every crisis lies great opportunity

Albert Einstein

Want to learn more as you re-evaluate your property investment strategies? Let me guide you along.

I will provide: 

-An IN-DEPTH Financial calculation

-Highly relevant investment insights

-A curated list of the best buys in today’s market with good upside potential and minimal risks

-Proven methods and steps

Lets get in touch today to kickstart your property wealth planning journey.

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My husband and I started our home-search by ourselves but was met with issues soon enough as we were unsure of the important things and areas to look out for and we were also not experienced in the negotiation process with the seller’s representing agent. Soon after hearing our problems, I was introduced to Rick by a friend. The entire buying process quickly became swift and smooth; Rick understands our needs, puts our personal interest first, seals us a good deal and educated us along the way about the important things and areas to pay attention to. Thumbs up to Rick and we will recommend him to anyone for their home-search
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"In short, Rick did an amazing job. He sold our house at a higher than initially discussed price and got us a good deal for our purchase. Both my wife and I are impressed with his professional yet friendly approach. We will definitely work with him again and recommend him to anyone."
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Rick is a very down to earth person. No hard sell or pushy technique. He helped us in planning for upgrade and showing us how to invest in property with in depth property analysis report.

Self Introduction


Greetings! My name is Rick Long, and I am proud to serve as the Associate Division Director of Huttons Asia Pte Ltd, with over a decade of experience in the real estate industry.

My passion for helping clients find their dream homes has grown exponentially during my tenure in the field. As a graduate of Singapore Polytechnic, I have always valued the importance of hard work and determination.

My prior experience serving in the airforce instilled in me the value of teamwork, perseverance, and discipline.

Over the years, I have been privileged to receive several accolades for providing exceptional service and dedication to my clients.

My ultimate goal is to ensure that each individual I work with has the best possible experience, whether they are buying or selling a property.

One of the most rewarding aspects of my work is receiving glowing five-star reviews from satisfied clients.

Knowing that I have positively impacted someone’s life is truly humbling, and it motivates me to continue striving for excellence every day.

When I am not working, I enjoy spending quality time with my loved ones, indulging my passion for sports, and exploring the rich and diverse culinary landscape of Singapore.

Amidst the bustling pace of life, I relish moments of calm by immersing myself in the art of tea-brewing and teapot appreciation.

Thank you for taking the time to learn a little more about me. I look forward to the opportunity to work with you.

Additionally, Rick is a proud fur daddy to two rescue kitties and loves spending his free time with his wife and furbabies. He believes in giving back to the community and volunteers his time to animal welfare causes whenever possible.

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