The Lion City roars: Unprecedented growth in Singapore’s property market for 2024

Navigating through a landscape of regulatory innovation and global economic shifts, the city-state’s property market shines as a beacon of resilience and opportunity 

In 2024, Singapore’s real estate market dazzles with unprecedented vibrancy, surpassing previous years’ performances. This optimistic trajectory, highlighted by The Business Times, stems from a palpable shift in the market dynamics – a movement from cautious explorations in 2023 to decisive, confident transactions in 2024. 

A leading figure in real estate, Roy Ling, the CEO, Board Director, and Adjunct Professor at FollowTrade, and a member of the judging panel at the PropertyGuru Asia Property Awards (Singapore), offers an in-depth analysis of the market’s driving forces. He articulates the allure drawing investors to Singapore’s shores: “Investors are particularly enamoured by Singapore’s economic stability, strategic location, government policies, infrastructure development, and the overall safety and quality of life. While specific risks and trends may evolve over time, the core underlying factors underpinning investor interest in Singapore’s property market are likely to remain stable, shaping the market landscape and investment opportunities going forward.” Ling’s perspective paints a picture of enduring attractiveness for both local and international investors. 

He further added: “We believe that Singapore private condo prices will remain resilient and increase at a steady rate in 2024, defying the broader global instability. This is even as the higher-for-longer interest rates and looming economic uncertainties are making some home buyers to become more cautious and prudent. 

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We see the expectations gap narrowing in 2024 for commercial real estate investments, with sellers and buyers giving a step to really close the deal with more realistic offers. We see hospitality, logistics, and retail assets as being the more preferred investment assets in Singapore in 2024.” 

Echoing Ling’s sentiments, the Singapore Business Review emphasizes the country’s strategic urban planning and transparent policies as primary magnets for global investments. Wei Leng Tang of Colliers Singapore stresses strategic economic development and efficient land use, fostering strong investor confidence. 

The present market’s resilience is further evidenced by the recognition of local developers at the 18th PropertyGuru Asia Property Awards Grand Final 2023, namely GuocoLand as Best Developer (Asia), Frasers Property Singapore as Best Mixed Use Developer (Asia), UOL Group Limited and Pan Pacific Hotels Group as Best Hospitality Developer (Asia), UOL Group Limited as Best Sustainable Developer (Asia), and EL Development Pte Ltd. as Best Hospitality Interior Design (Asia) for their Pullman Singapore Hill Street project. This celebration of excellence within the Singapore real estate industry underlines the market’s ability to thrive in diverse segments. 

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To stay ahead of the future trends of the market, significantly influenced by the changing regulatory environment, Ling advises local and global investors to consider these three areas: 

• Impact of cooling measures: “Singapore’s government periodically introduces cooling measures to stabilise the property market and prevent speculative bubbles. These often include measures such as increased stamp duties, stricter loan-to-value ratios, and limits on loan tenures. Local and international investors closely monitor these measures as they can affect property prices, transaction volumes, and investment returns.”
• Urban Redevelopment Authority (URA) Master Plan: “The URA Master Plan outlines Singapore’s long-term urban development strategies, including land-use zoning, transportation infrastructure, and development guidelines. Investors study the URA Master Plan to identify growth areas, upcoming infrastructure projects, and to identify potential investment opportunities. Changes or updates to the Master Plan can impact property values and investment prospects, prompting investors to reassess their investment scenarios.”
• Sustainability and green building requirements: “Singapore is prioritising sustainability and green building initiatives to mitigate environmental impacts and to support sustainable mindsets and lifestyles. The government has introduced green building incentives and regulations to promote energy efficiency and environmental sustainability. Investors incorporate sustainability considerations into their investment strategies, such as investing in green-certified properties or retrofitting existing buildings to meet sustainability standards.” 

As we progress through 2024, Singapore’s real estate market continues to be a focal point for investors and industry observers alike. With insights from leaders like Ling, it remains a compelling story of growth, innovation, and resilience, set against a backdrop of a rapidly evolving global economic and regulatory environment. The city-state’s real estate market, with its unique blend of stability, innovation, and adaptability, is poised to remain a key player on the world stage, inviting continued investment and interest from around the globe.

Know any award-worthy residential, commercial, or industrial projects in the country? Nominate them for the 14th annual PropertyGuru Asia Property Awards (Singapore) on or before 30 August 2024. To know more, visit AsiaPropertyAwards.com/Award/Singapore/.

Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected].