Singapore Property 2040: What Future Buyers Can Expect (and Why Waiting Could Cost You More)
- Megan Soo
- Nov 2
- 2 min read
Singapore’s real estate market has always been one of the most resilient in the world — and according to DBS’s Singapore 2040 Outlook, it’s expected to stay that way for at least the next 15 years. But while that’s good news for long-term stability, it also means that the cost of waiting to buy a home is likely to rise significantly.
1️⃣ What’s the forecast?
DBS estimates that property prices (PPI) will grow at a 2–3% compound annual rate (CAGR) through 2040. That may sound modest — but over 15 years, it compounds fast. Here’s what that looks like in real terms:
A $1.5M condo today → $2.02M (if prices grow at 2% a year)
A $1.5M condo today → $2.34M (if prices grow at 3% a year)
That’s an increase of $500K–$800K over time — purely from appreciation.
2️⃣ Why prices will keep rising
The report ties this steady increase to three long-term drivers:
Population growth — projected to continue rising as Singapore welcomes new citizens, PRs, and foreign talent.
Income growth — household incomes expected to rise by around 1.5–2% annually, supporting sustained housing demand.
Government stability and urban planning — with strong policies that make Singapore property one of the safest long-term assets globally.
3️⃣ But here’s the catch
While property prices could climb 2–3% a year, household income growth is likely to lag slightly behind — around 1.5–2%. That means homes could become less affordable over time, even if prices appear to rise “slowly.”
Waiting to buy might feel safe now, but it could mean needing a larger downpayment and higher monthly installments later for the same type of home.
4️⃣ What this means for buyers
The takeaway isn’t panic — it’s perspective. Singapore’s property market is not expected to overheat, but to appreciate sustainably. In other words, today’s prices may be tomorrow’s bargains.
If you’re on the fence about entering the market, the 2040 outlook reinforces a simple truth:The longer you wait, the harder it gets to catch up.
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