What Would Singapore Property Prices Be Like In 30 Years?

Singapore real estate is in its own class, when it comes to inflation

Maybe you’ve seen this old ad going around; and granted, it’s American, but the entire world has been feeling the effects of inflation lately. Most Singaporeans can probably still empathise. If you think that level of inflation is scary though, wait till you see the effects in the resale flat or private property market.

Even over 10 years, property price inflation is unmatched by other goods. Consider 4-room flat prices in 2014, versus 2024:

Back in October 2014, (resale) 4-room flats were at $423 psf on average. At around 960 sq.ft., which is a typical flat size, you could get one for a little over $400,000. As of October 2024, we’re up to $636 psf, or about $610,500+. 

For the sake of comparison, I played around a bit with the MAS Inflation Calculator. It only goes to 2023, but that’s somewhat close enough (note: I admit this is nowhere near as rigorous as an actual article). 

A meal that cost $3.50 in 2013, would cost around $4.50 today. A $50 doctor’s bill in 2013 should be about $58 today. You can play around with it and see if you agree; but the point is, nothing seems to have gone up as quickly as property prices, and this is just with regard to public housing. 

The inflation rate given, for various baskets of goods like utilities, food, healthcare, etc. is typically around 2.5 to three per cent. If we consider that median wages in around 2013 were at $3,800 per month and that it’s at $5,200 per month in 2024, many of us have seen our wages match or outpace inflation in many categories. While I understand it’s not universally true, some people now have to work fewer hours to buy a TV, t-shirt, phone, etc. 

But whilst it’s becoming easier to afford some consumer goods, resale flats and private properties have gone the other way. BTO flats are still kept affordable by government controls; but once you get to the secondary or private market, you’re likely working harder and longer than in previous years, to afford your home.

For young Singaporeans, it may be time for an apples-to-oranges comparison

If you must bypass the BTO queue for some reason, you’ll just have to throw enough money at someone to convince them to move. And Singaporeans have high savings and big expectations, as well as expensive replacement properties. So you’ll have to chuck a whole lot of money at them.

So maybe, instead of sticking to conventional comparisons (e.g., comparing location, square footage, which MRT lines are close), it’s worth going outside the property box. Is getting your flat a few years sooner, really worth the price of a degree or master's? Is an extra 300 sq. ft. - because old flats are bigger - equal to ($636 x 300) = $190,800 worth of other life goals? 

It boils down to what’s going to make you happier in life, and the answer to that isn’t always that “I can walk to the MRT from here.” 

Inflation is a real thing, and I would never downplay it. But focusing on resale instead of BTO flats, or private property, greatly amplifies its perceived impact; to a much greater degree than other aspirations. For some of us, a good way to stop feeling the pain of inflation might be to channel our financial goals elsewhere, besides a pricier home. 

Now that I’ve gotten myself preemptively fired from every agency for saying that, let’s look at what’s happening in…

Other property news

• The rising number of resale flats between $900,000 to $1 million, aka How BTO flats will save your life.
• We know some of you don’t have the BTO option though. To balance out the sense of panic, here are the cheapest 4-room resale flats near MRT stations. While they last, eh?
• Are mega-developments good? There must be some downsides to that lower price tag and more lavish facilities. 
• Norwood Grand is selling really well, despite detractors screaming about $2,000+ psf prices in Woodlands. 

Weekly Sales Roundup (14 October - 20 October)

Top 5 Most Expensive New Sales (By Project)

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
MEYER BLUE	$6,249,000	1905	$3,280	FH
KLIMT CAIRNHILL	$4,782,160	1432	$3,340	FH
TEMBUSU GRAND	$3,583,000	1432	$2,503	99 yrs (2022)
19 NASSIM	$3,538,000	969	$3,652	99 yrs (2019)
ONE BERNAM	$3,430,000	1421	$2,414	99 yrs (2019)

Top 5 Cheapest New Sales (By Project)

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
NORWOOD GRAND	$988,000	495	$1,995	99 years
KASSIA	$1,014,000	474	$2,141	FH
LENTORIA	$1,292,000	538	$2,401	99 yrs (2022)
THE MYST	$1,342,000	657	$2,044	99 yrs (2023)
PARC CANBERRA	$1,345,000	958	$1,404	99 yrs (2018)

Top 5 Most Expensive Resale

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
TURQUOISE	$9,000,000	6900	$1,304	99 yrs (2007)
AMBER SKYE	$6,750,000	4629	$1,458	FH
ST REGIS RESIDENCES SINGAPORE	$6,485,000	2594	$2,500	999 yrs (1995)
THE WATERSIDE	$5,288,888	2400	$2,203	FH
THE SEAFRONT ON MEYER	$4,750,000	2088	$2,275	FH

Top 5 Cheapest Resale

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
PARC ROSEWOOD	$615,000	431	$1,428	99 yrs (2011)
HEDGES PARK CONDOMINIUM	$715,000	484	$1,476	99 yrs (2010)
MILLAGE	$738,000	463	$1,594	FH
RIVERSAILS	$746,888	506	$1,476	99 yrs (2011)
RIVERFRONT RESIDENCES	$782,000	463	$1,690	99 yrs (2018)

Top 5 Biggest Winners

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	RETURNS	HOLDING PERIOD
THE BOTANIC ON LLOYD	$3,500,000	1496	$1,016	$1,980,000	19 Years
SOUTHAVEN II	$2,550,000	1507	$524	$1,760,000	18 Years
THE SEAFRONT ON MEYER	$4,750,000	2088	$1,490	$1,639,000	17 Years
CITY SQUARE RESIDENCES	$2,380,000	1216	$667	$1,569,190	18 Years
GOLDENHILL PARK CONDOMINIUM	$2,080,000	926	$742	$1,393,300	24 Years

Top 5 Biggest Losers

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	RETURNS	HOLDING PERIOD
THE BOTANY AT DAIRY FARM	$2,141,000	1033	$2,072	$0	1 Year
JUNIPER HILL	$2,625,000	958	$2,816	-$73,000	3 Years
MARTIN NO 38	$4,200,000	1485	$2,962	-$200,000	13 Years
KLIMT CAIRNHILL	$4,526,400	1432	$3,409	-$353,600	1 Year
ALTEZ	$1,530,000	861	$2,419	-$552,796	12 Years

Transaction Breakdown

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