It is crucial for international investors to have a comprehensive understanding of the regulations and limitations surrounding property ownership in Singapore. Unlike landed properties, which have stricter ownership rules, foreigners are generally allowed to purchase condos with fewer restrictions. However, foreign buyers must be aware of the Additional Buyer’s Stamp Duty (ABSD) of 20% on their initial property purchase. Despite the additional costs, the Singapore real estate market remains highly appealing for foreign investment, given its stability and potential for growth. Check out Singapore Projects for more information on available properties.
Housing and Development Board (HDB) flats are a top priority for the government, according to National Development Minister Chee Hong Tat on Aug 5. Chee highlighted that HDB flats are the homes for about 80% of Singaporeans and an integral part of the social fabric of the country. He stressed that it is crucial to maintain a robust supply of HDB flats to meet demand and keep prices in check. In the coming years, between 2025 and 2027, 55,000 new Build-to-Order (BTO) flats are expected to be launched. Chee noted that with enough BTO flats available for first-time buyers, these buyers may choose them over resale flats.The government also plans to make 25,000 units available in the private housing segment through the Government Land Sales (GLS) programme. With that, a total of 70,000 private homes are expected to be completed by around 2030, including the 45,000 private housing units already in the pipeline.AdvertisementAccording to the market data, a growing number of BTO flats will reach their minimum occupation period (MOP) in the coming years. From only 8,000 units available in 2025, the numbers are expected to increase to 13,500 in 2026, 15,000 in 2027, and 19,500 in 2028. This will not only expand the potential resale supply but also help to moderate prices. Chee believes that the increasing number of BTO flats reaching their MOP will lead to further stabilisation of prices.Records show that the growth of resale prices has already slowed, with a quarter-on-quarter increase of only 0.9% in 2Q2025. This is the third consecutive quarter of moderation and the lowest since 2Q2020. Chee said that if there are enough BTO flats available for first-time buyers, some may choose these over resale flats.AdvertisementHe also noted that even though the number of million-dollar flat transactions has been rising, it still remains a small fraction of total sales. According to Lee Sze Teck, Huttons Asia’s Senior Director of Data Analytics, a record 415 million-dollar flats changed hands in 2Q2025, up by 19.3% from the previous quarter. Over 90% of these transactions were in mature estates, with Toa Payoh recording the highest number (80), followed by Bukit Merah (56) and Queenstown (49).Chee added that these flats are still attractive to buyers because they offer immediate occupancy and allow them to choose preferred attributes such as location and size. He also believes that it is reasonable for resale flats in prime locations with desirable attributes to sell at a higher price. According to him, many sellers are former BTO owners who are upgrading to executive condos (ECs) or private properties. Chee emphasised that there is a diversity of resale flats available at various price points. He cited four-room units with at least 70 years left on their leases, such as those in Tampines and Punggol, with prices ranging from $650,000 to $700,000. In addition, there are also units in Sembawang and Yishun valued under $600,000, and flats in Jurong West and Woodlands for under $500,000.AdvertisementHe added that first-time buyers who qualify for grants will receive even lower prices, as they can receive up to $230,000 in housing grants. In his speech, Chee informed that the government is reviewing the BTO eligibility age for singles, which is currently at 35. They are also considering adjustments to income ceilings, which currently stands at $14,000 for HDB flats and $16,000 for ECs.AdvertisementEugene Lim, ERA Singapore’s key executive officer, said that he believes that lowering the BTO eligibility age for singles will increase demand by allowing more individuals to apply earlier. Similarly, he believes that raising the income ceiling will also expand the pool of eligible buyers. Lim also pointed out that the last review of income ceilings was back in 2019. Given the rise in housing prices since then and the 16.6% increase in average household monthly income from $9,763 in 2019 to $11,382 in 2024, the review was timely, Lim noted.According to Lim, with the stability of application rates for first-time families and an expected surge of MOP units from 2026, the demand from families should be manageable. However, he observed that demand for two-room flats remains highly oversubscribed. Lim believes that lowering the singles’ age limit for eligibility may seem counterintuitive to the government’s broader policy of encouraging marriage and family formation.The government is also focused on rejuvenating ageing flats and estates, rather than redeveloping them under the Selective En Bloc Redevelopment Scheme (SERS), according to Chee. He noted that the Neighbourhood Renewal Programme (NRP), which was launched in 2007, was expanded last year to include more senior-friendly features such as therapeutic gardens, fitness trails, and wayfinding aids. The Silver Upgrading Programme (SUP), which was established in 2024, targets older estates with a higher concentration of seniors. This year, SUP was extended to 12 more precincts across Ang Mo Kio, Bukit Merah, and Toa Payoh, benefiting 11,000 more households.AdvertisementPrivate estates are also set to undergo improvement under the Estate Upgrading Programme (EUP). The EUP was expanded to include senior-friendly enhancements, and the “Silver Estate” category was launched in February 2025. The “Silver Estate” category aims to support seniors ageing in place, with a budget of $11 million allocated to upgrade seven selected estates. In addition, $124 million has been set aside to upgrade 25 private estates under the regular EUP, which has also been expanded to include senior-friendly enhancements.Chee noted that seniors can also benefit from the Enhancement for Active Seniors (EASE) programme, which subsidises home improvements. The EASE programme will be extended to private estates from April 2026. Furthermore, the new Home Improvement Programme II (HIP II) will address the needs of flats entering the second half of their leases. HIP II will use enhanced solutions such as the corrosion-resistant repair (CRR) method for spalling concrete and microwave scanning for early detection of structural issues. More details will be announced by the 2026 Committee of Supply.According to Chee, the government is also continuing with their plans to manage lease decay through SERS and the upcoming Voluntary Early Redevelopment Scheme (VERS). Chee reiterated that most HDB and private properties are sold with 99-year leases to ensure fairness for future generations. He believes that these leases allow land to be recycled for new housing and enables estate rejuvenation over time.AdvertisementSERS was first launched in 1995 and involves compulsory acquisition by the government. Owners would be compensated for their property at market value. VERS, which is set to apply to selected precincts about 70 years old, will allow residents to vote on whether to sell their flats back to the government for redevelopment. Chee said that residents could benefit from the redevelopment, which will take place over a period of 20 to 30 years to minimise disruptions and allow strategic town replanning.ERA’s Lim thinks that VERS could face challenges if compensation is perceived to be less favourable compared to SERS, and older owners may be wary of the affordability of replacement homes. He believes that offering priority selections for new flats in the same location could encourage more owners to participate.Advertisement”There are a lot of concerns from residents living in older flats on ageing infrastructure, from water pipes to structural elements,” said Lim. He added that a redevelopment of these flats could address these issues as these flats were built with methods that have since evolved. Lim concluded that residents hope for redevelopment that could resolve these issues.