Singapore’s Real Estate Market Shows Resurgence

Singapore’s real estate market could face tougher curbs in the coming months if authorities fail to curb the growing homebuying frenzy, Barclays Plc warned on Monday. The recent surge in private property sales, particularly a record November performance, has raised concerns that property prices could rise again, reminiscent of the 2017-2019 period when previous cooling measures failed to slow the market.

Preliminary data from the Urban Redevelopment Authority shows that more than 2,400 new private homes sold in November, marking the strongest sales month in over a decade. Barclays analysts Brian Tan and Audrey Ong gave a warning that without timely intervention, the market may interpret the government’s inaction as a sign that policymakers are not fully ready to curb price increases.

Singapore’s Real Estate Market Shows Resurgence, Pushing Authorities

The Central Bank of Singapore recently pointed to the easing of domestic lending rates as a key factor in boosting sentiment within the private property market. In its annual financial stability review, the Monetary Authority of Singapore (MAS) stated it would remain vigilant in monitoring developments but did not signal immediate action.

Over the past three years, authorities have implemented multiple rounds of cooling measures, including a significant hike in stamp duty for foreign buyers to 60% in 2023. However, Barclays analysts expressed concern that recent policy changes, such as the 2025 property tax rebate for owner-occupied homes, could inadvertently fuel investor demand. While the aim is to ease the cost of living for residents, the rebate could be misinterpreted by real estate investors as a signal of reduced government intervention.

“Real estate investors may view this as a sign that the government is loosening its stance, further fueling the property frenzy,” Barclays analysts warned. The market remains sensitive to policy shifts, and further cooling measures may be necessary to stabilize the market.

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