Your search results

Top 5 Reasons : Why is Supply so tight for Singapore Property?

Posted by Jayson Ang on January 22, 2025

| 0

Singapore’s property market has been experiencing a tight supply in recent years, leading to increased demand and rising property prices. This phenomenon can be attributed to various factors that have contributed to the limited availability of housing units in the city-state.

We will explore the top five reasons behind the tight supply of Singapore property and discuss their implications on the market.

1. Population Growth

One of the primary factors contributing to the tight supply of properties in Singapore is the steady growth of its population. As of 2019, Singapore’s total population was about 5.7 million, with projections indicating an increase to approximately 6.9 million by 2030. This growing population creates a higher demand for housing, putting pressure on the existing supply of residential properties.

2. Government Land Supply Regulation

The Singapore government plays a significant role in regulating the supply of land for residential developments through the Government Land Sales (GLS) programme. By controlling the release of land for new residential projects, the government can manage property prices and ensure a sustainable rate of development. However, this also means that the supply of land for new housing projects may not always keep up with the increasing demand.

3. Limited Land Availability

Singapore is a small city-state with limited land resources, making it challenging to accommodate the growing demand for housing. The scarcity of land for residential developments contributes to the tight supply of properties, as developers compete for available land to build new housing projects.

4. Infrastructure Investment and URA Master Plan

The Urban Redevelopment Authority (URA) Master Plan outlines the future development plans for various areas in Singapore, including infrastructure investments and zoning regulations. These plans can influence the supply of properties in specific localities, as developers need to adhere to the guidelines set by the URA. Additionally, investments in infrastructure can make certain areas more attractive to buyers, further increasing the demand for properties in those locations.

5. Cooling Measures and Financing Restrictions

The Singapore government has implemented various cooling measures and financing restrictions to moderate demand in the property market and encourage prudent borrowing. These measures include tightened loan-to-value limits, additional buyer’s stamp duty, and interest rate floors. While these policies help control property prices and prevent a housing bubble, they can also contribute to the tight supply of properties as developers may be more cautious in launching new projects.

In conclusion, the tight supply of Singapore property can be attributed to factors such as population growth, government land supply regulation, limited land availability, infrastructure investment, and cooling measures. As the city-state continues to grow and develop, it is crucial for the government and developers to strike a balance between managing property prices and ensuring an adequate supply of housing to meet the needs of Singaporeans.

If you would like to arrange a viewing appointment with us in Singapore, do send us a DM here

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

Buying Tips Mandarin Top 5

Singapore Luxury Property: 5 Reasons to Add it to Your Trophy Collection

Jayson Ang – July 4, 2023 –

Singapore Luxury Property: 5 Reasons to Add it to Your Trophy Collection When it comes to luxury property investments, Singapore...

All Blog Posts Buying Tips

Uncover the Secrets of Buying Older Properties – What They Won’t Tell You!

Jayson Ang – December 30, 2022 –

TLDR When considering the appeal of older properties in hipster neighborhoods in Singapore, it's crucial to understand the benefits and...

Mandarin Top 5

Navigating the Singapore Property Market as a Foreign Investor: What You Need to Know

Jayson Ang – August 7, 2024 –

Singapore, a thriving hub of business and commerce in Southeast Asia, boasts a highly developed economy and a robust real...

All Blog Posts Opinion

Singapore Property Bubble Ahead? My Friends Share My Market Predictions

Jayson Ang – March 12, 2023 –

TLDR The author delves into various opinions on the Singapore property market for the year 2023. Experts have differing views...

All Opinion Selling Tips

3 Property Owners Reveal Their Major Mistakes: The Pitfalls of Ill-timed Home Sales

Jayson Ang – December 10, 2023 –

TLDR When it comes to navigating the ups and downs of the Singapore property market, timing is crucial. Three real-life...

Mandarin Top 5

5 Points : Singapore’s Property Market vs. Stock Market: Which is the Better Investment Option?

Jayson Ang – April 2, 2024 –

Investing is an important aspect of personal finance and can be a valuable way to grow wealth over time. However,...

All Blog Posts Opinion

Discover 5 Reasons Executive Condominiums Could Prove To Be A Smart Investment Despite Growing Inflation

Jayson Ang – January 22, 2023 –

TLDR An overview of the article discussing the benefits of Executive Condominiums (ECs) over private condos in the current real...

Mandarin Top 5

5 Things to Know About Singapore’s Urban Redevelopment and Landscape Changes

Jayson Ang – March 11, 2024 –

As one of the world's most densely populated cities, Singapore has undergone significant urban redevelopment over the past few decades...

All Buying Tips Opinion

Planning for a Future Landed Property Purchase After Selling Your BTO: Investment Tips

Jayson Ang – September 2, 2024 –

TLDR Transitioning from a BTO to a landed property necessitates understanding market trends, meticulous financial planning, exploring financing options, enhancing...