Property Market Remains Red-Hot: Does Singapore Need More 'Aggressive' Cooling Measures?

Singapore authorities may need to introduce more "aggressive" property curbs down the road if they fail to address the current homebuying frenzy by early next year, analysts said.

The recent private market resurgence, driven by a blockbuster November, "increases the odds of property price resilience" and mirrors the 2017–2019 period when buyers shrugged off cooling measures, a report stated. A lack of response could likely be interpreted as policymakers merely making a half-hearted attempt to rein in property prices.

According to preliminary data from the Urban Redevelopment Authority (URA), more than 2,400 new private homes were sold last month, marking the strongest monthly sales pace in over a decade.

Singapore's central bank noted last week that easing domestic borrowing rates has lifted sentiment in the private residential market. In its annual Financial Stability Review, the government stated that it will remain vigilant to market developments.

Authorities have intervened to cool the private market three times in under three years, most recently doubling stamp duties for most foreign buyers to 60% in 2023—one of the highest rates in the world.

The recently announced property tax rebates for 2025 could also inadvertently bolster sentiment among property investors, despite being a targeted measure designed to help with cost-of-living pressures.

Even so, analysts noted that property investors might interpret the announcement as a sign that the government is easing off the brakes. Some market participants may choose to see what they wish to see, gathering as many justifications as possible as investor sentiment picks up, further fuelling the frenzy.