Singapore's Property Market on the Mend

SINGAPORE – National Development Minister Desmond Lee has optimistic news for homebuyers: the public and private housing markets are stabilizing, and relief is on the way with an influx of new housing supply. In a press conference on April 15, Lee highlighted that as more homes become available, easing the current property crunch is anticipated.

Rising Supply Promises New Opportunities

With a significant number of Housing & Development Board (HDB) flats approaching the end of their five-year minimum occupation period (MOP) by 2026, the market is poised for a turnaround. Recent statistics reveal a modest price growth of 1.5% for HDB flats and 0.6% for private properties in the first quarter of 2025, marking a slower pace than previous quarters.

Key Issues for Upcoming Elections

As Parliament dissolved on April 15 in the lead-up to Nomination Day on April 23, Lee emphasized that housing, alongside cost of living, job security, and the economy, are key voter concerns. These longstanding issues have only intensified in the wake of the pandemic, which has posed numerous local and global challenges.

Government's Response to Market Disruptions

Addressing the housing market disruptions caused by COVID-19, Lee pointed out the government's strategic efforts to stabilize construction, which is vital for both public and private sector projects. "We’ve ramped up supply significantly to cater to Singaporeans’ housing needs," he stated.

Over 50,000 New BTO Flats on the Horizon

Looking ahead, more than 50,000 Build-To-Order (BTO) flats are set to launch between 2025 and 2027, including 12,000 flats with waiting times of less than three years. In 2025 alone, HDB plans to release around 19,600 new units.

Private Property Supply on the Rise

On the private property front, the Government Land Sales program is also expanding, with housing supply expected to jump to 8,505 units in the first half of 2025, an increase from 8,140 units in the latter half of 2024.

Navigating Challenges and Ensuring Affordability

Lee expressed gratitude to residents who have patiently awaited their homes amidst delays caused by the pandemic. He reaffirmed the government’s commitment to creating affordable, inclusive housing through the introduction of Standard, Plus, and Prime housing categories, effective from October 2024.

Political Cycles vs. Market Dynamics

While it's tempting to hope the property market aligns with political cycles, Lee urged a more practical approach. "As stewards of resources, we must tackle supply and demand wisely," he concluded, setting a thoughtful tone for Singapore's housing future.