Investing in Singapore PropertySingapore Property Market

Why Invest in Singapore Property? 5 Reasons and the Risks in 2026

Five reasons Singaporeans invest in property, from cheap leverage to no capital gains tax, weighed against 2026 risks: ABSD, SSD, thin yields and new supply.

By Propwise EditorialUpdated 5 October 20266 min read

Waterfront homes and moored yachts at Sentosa Cove, Singapore

Singapore property has built more household wealth than any other asset most Singaporeans own, for five clear reasons: you can borrow cheaply to buy it, it pays rent, you can add value to it, there is no capital gains tax on long-term gains, and the market is stable and well regulated. But in 2026 the case is narrower than when this article first appeared in 2010. A second home now carries 20% ABSD for citizens, sellers pay stamp duty for four years, and net rental yields of around 2.5% leave little margin. Property can still be a good investment. It is just no longer a default one.

At a glance

  • A first home can be bought with a 75% bank loan, and home loan rates were around 1.5% to 2.2% in early October 2026.
  • Singapore does not tax capital gains on property you hold as an investment, but Seller’s Stamp Duty applies if you sell a home within four years.
  • ABSD for a citizen’s second home is 20% (30% for a third); for foreigners, 60% on any home.
  • Private home prices rose 1.4% in the third quarter of 2026, while HDB resale prices dipped for a third straight quarter.
  • New supply is rising: 9,320 private homes are on the 2026 Government Land Sales Confirmed Lists.

Reason 1: Leverage lets you buy a large asset with a small deposit

Few investments let ordinary people borrow three times their own money at low interest. A bank lends up to 75% of the price if you have no other housing loan. With 3-month compounded SORA around 1.23% on 1 Oct 2026, bank packages were around 1.5% to 1.8% for floating rates and 2.0% to 2.2% for fixed rates (The Business Times, 2 Oct 2026), a little higher than a month earlier after the US Federal Reserve raised rates in September.

Singapore and US interest rates since 2019Percent a year. Weekly values: 3-month compounded SORA and the US effective federal funds rate.
  • 3-month compounded SORA (Singapore)
  • US federal funds rate (effective)
Singapore and US interest rates since 2019. Both rates fell to near zero in 2020 and 2021, then rose sharply in 2022 and 2023. SORA peaked near 3.7 per cent and has since fallen to about 1.2 per cent, while the US rate stays above 3.5 per cent.0.0%1.0%2.0%3.0%4.0%5.0%2020202120222023202420252026Fed 3.88%SORA 1.23%Singapore and US interest rates since 2019. Both rates fell to near zero in 2020 and 2021, then rose sharply in 2022 and 2023. SORA peaked near 3.7 per cent and has since fallen to about 1.2 per cent, while the US rate stays above 3.5 per cent.0.0%1.0%2.0%3.0%4.0%5.0%2020202120222023202420252026

Latest: SORA 1.23% (1 Oct 2026); Fed 3.88% (1 Oct 2026).

SORA is the benchmark for floating-rate home loans in Singapore. The US rate is shown for context: it moves SORA only indirectly, through the Singapore dollar and bank funding costs.

Table view
Period3-month compounded SORA (Singapore)US federal funds rate (effective)
Oct 20261.23%3.88%
Sep 20261.23%3.88%
Aug 20261.18%3.63%
Jul 20261.14%3.63%
Jun 20261.08%3.63%
May 20261.06%3.62%
Apr 20261.03%3.64%
Mar 20261.07%3.64%
Feb 20261.12%3.64%
Jan 20261.15%3.64%
Dec 20251.19%3.64%
Nov 20251.25%3.89%
Oct 20251.32%4.11%
Sep 20251.46%4.09%
Aug 20251.56%4.33%
Jul 20251.86%4.33%
Jun 20252.06%4.33%
May 20252.27%4.33%
Apr 20252.40%4.33%
Mar 20252.55%4.33%
Feb 20252.73%4.33%
Jan 20252.90%4.33%
Dec 20243.08%4.33%
Nov 20243.21%4.58%
Oct 20243.39%4.83%
Sep 20243.49%4.83%
Aug 20243.57%5.33%
Jul 20243.64%5.33%
Jun 20243.63%5.33%
May 20243.66%5.33%
Apr 20243.65%5.33%
Mar 20243.68%5.33%
Feb 20243.64%5.33%
Jan 20243.66%5.33%
Dec 20233.70%5.33%
Nov 20233.75%5.33%
Oct 20233.75%5.33%
Sep 20233.70%5.33%
Aug 20233.70%5.33%
Jul 20233.68%5.33%
Jun 20233.65%5.07%
May 20233.61%5.08%
Apr 20233.61%4.83%
Mar 20233.58%4.83%
Feb 20233.23%4.58%
Jan 20233.12%4.33%
Dec 20223.03%4.33%
Nov 20222.87%3.83%
Oct 20222.45%3.08%
Sep 20222.07%3.08%
Aug 20221.55%2.33%
Jul 20221.27%2.32%
Jun 20220.72%1.58%
May 20220.52%0.83%
Apr 20220.32%0.33%
Mar 20220.27%0.33%
Feb 20220.25%0.08%
Jan 20220.20%0.08%
Dec 20210.19%0.08%
Nov 20210.16%0.08%
Oct 20210.16%0.07%
Sep 20210.13%0.08%
Aug 20210.13%0.08%
Jul 20210.13%0.10%
Jun 20210.14%0.10%
May 20210.17%0.05%
Apr 20210.19%0.07%
Mar 20210.23%0.07%
Feb 20210.20%0.07%
Jan 20210.17%0.07%
Dec 20200.17%0.09%
Nov 20200.12%0.08%
Oct 20200.12%0.09%
Sep 20200.10%0.09%
Aug 20200.10%0.09%
Jul 20200.08%0.09%
Jun 20200.14%0.08%
May 20200.27%0.05%
Apr 20200.53%0.05%
Mar 20200.90%0.10%
Feb 20201.14%1.58%
Jan 20201.20%1.55%
Dec 20191.27%1.55%
Nov 20191.31%1.55%
Oct 20191.46%1.83%
Sep 20191.53%1.83%
Aug 20191.59%2.12%
Jul 20191.67%2.40%
Jun 20191.72%2.40%
May 20191.68%2.38%
Apr 20191.62%2.44%
Mar 20191.54%2.43%
Feb 20191.59%2.40%
Jan 20191.52%2.40%

Source: MAS, FRED. Data to 1 Oct 2026. Licences and notices

Leverage multiplies losses as well as gains. On a S$1.2m condo with a S$900,000 loan, a 10% price fall wipes out S$120,000, which is 40% of a S$300,000 downpayment. Banks test you at a 4% interest rate and cap all your debt repayments at a 55% Total Debt Servicing Ratio for a reason. The loan limit also falls to 45% if you already have one housing loan, and 35% with two. Run your own numbers in our mortgage calculator.

Reason 2: It pays you rent

Unlike gold or a growth stock, a property can pay you every month. The URA rental index for private homes rose 0.7% in Q2 2026, with island-wide vacancy at 6.4%.

Private home rents and pricesURA rental index and price index, both Q1 2009 = 100. Quarterly.
  • Prices (URA price index)
  • Rents (URA rental index)
Private home rents and prices. Prices and rents both rose after 2009. Prices have risen further than rents, which is why rental yields have fallen.100.0150.0200.020052010201520202025Prices 219.4Rents 162.5Private home rents and prices. Prices and rents both rose after 2009. Prices have risen further than rents, which is why rental yields have fallen.100.0150.0200.020052010201520202025

Latest: Prices 219.4 (Q2 2026); Rents 162.5 (Q2 2026).

Table view
PeriodPrices (URA price index)Rents (URA rental index)
Q2 2026219.4162.5
Q1 2026218.3161.4
Q4 2025216.4160.9
Q3 2025215.1161.7
Q2 2025213.2159.8
Q1 2025211.1158.5
Q4 2024209.4157.9
Q3 2024204.7157.9
Q2 2024206.1156.6
Q1 2024204.3157.9
Q4 2023201.5161.0
Q3 2023196.0164.5
Q2 2023194.4163.2
Q1 2023194.8158.8
Q4 2022188.6148.1
Q3 2022187.8137.9
Q2 2022180.9127.0
Q1 2022174.8119.0
Q4 2021173.6114.2
Q3 2021165.3111.3
Q2 2021163.5109.3
Q1 2021162.2106.2
Q4 2020157.0103.9
Q3 2020153.8103.8
Q2 2020152.6104.3
Q1 2020152.1105.6
Q4 2019153.6104.5
Q3 2019152.8105.6
Q2 2019150.8105.5
Q1 2019148.6104.1
Q4 2018149.6103.1
Q3 2018149.7104.1
Q2 2018149.0103.8
Q1 2018144.1102.8
Q4 2017138.7102.5
Q3 2017137.6103.4
Q2 2017136.6103.4
Q1 2017136.7103.6
Q4 2016137.2104.5
Q3 2016137.9105.6
Q2 2016140.0106.9
Q1 2016140.6107.5
Q4 2015141.6108.9
Q3 2015142.3110.3
Q2 2015144.2111.0
Q1 2015145.5112.2
Q4 2014147.0114.1
Q3 2014148.6115.2
Q2 2014149.7116.1
Q1 2014151.3116.8
Q4 2013153.2117.6
Q3 2013154.6118.2
Q2 2013154.0117.9
Q1 2013152.4117.6
Q4 2012151.5116.6
Q3 2012148.8115.9
Q2 2012147.9114.8
Q1 2012147.2114.5
Q4 2011147.4114.2
Q3 2011147.0113.7
Q2 2011145.1112.8
Q1 2011142.3111.4
Q4 2010139.2110.0
Q3 2010135.5107.2
Q2 2010131.7103.5
Q1 2010125.197.7
Q4 2009118.493.3
Q3 2009110.392.8
Q2 200995.394.8
Q1 2009100.0100.0
Q4 2008116.4109.3
Q3 2008123.9115.5
Q2 2008126.9116.5
Q1 2008126.7113.6
Q4 2007122.1107.2
Q3 2007114.4100.4
Q2 2007105.690.1
Q1 200797.681.6
Q4 200693.175.9
Q3 200689.672.1
Q2 200687.368.7
Q1 200685.867.2
Q4 200584.566.5
Q3 200583.366.1
Q2 200582.365.6
Q1 200581.965.2
Q4 200481.364.6
Q3 200480.764.2
Q2 200480.464.0
Q1 200480.364.0

Source: URA (via SingStat). Data to Q2 2026. Licences and notices

But rent is smaller than most buyers expect once costs are paid. In our rental yield guide, a S$1.2m condo renting at S$3,800 a month grosses 3.8% but nets about 2.5%. That is after vacancy, agent fees, maintenance, repairs and the non-owner-occupied property tax of 12% to 36% of annual value. With a typical loan, the rent usually does not cover the instalment and costs.

Reason 3: No capital gains tax on investment gains

Singapore has no capital gains tax. IRAS generally does not tax the gain when you sell a property you bought to live in or hold as an investment. The exception is someone it judges to be trading in property, based on how often they buy and sell, why, whether they can afford to hold for the long term, and how long they hold. Rental income, by contrast, is taxed at your personal income tax rate.

Two big costs do the job a capital gains tax would otherwise do. Additional Buyer’s Stamp Duty is paid upfront: 0% / 20% / 30% for a citizen’s first, second and third home; 5% / 30% / 35% for PRs; 60% for foreigners. And Seller’s Stamp Duty for homes bought from 4 Jul 2025 is 16%, 12%, 8% and 4% of the price if you sell in the first to fourth year. Both rates are far higher than in 2010, when a citizen’s second home carried no ABSD at all.

Reason 4: You can add value

You can raise the rent and resale value of a property by renovating a tired unit, reconfiguring a layout or furnishing it to suit tenants. This is one of the few ways an individual investor controls their own return. Do the sums first: a S$50,000 renovation that lifts the rent by S$200 a month takes almost 21 years to pay back from rent alone. It pays off mainly when it also lifts the sale price or shortens vacancies.

Reason 5: A stable, well-regulated market with a long track record

Singapore’s private home prices have risen a long way, but the path has not been smooth. URA’s private residential price index (first quarter of 2009 = 100) stood at 219.4 in Q2 2026. That is about 4.7% a year since 2009. Measured from the 1996 peak of 129.7, the gain is only about 1.8% a year, because prices fell 45% between 1996 and 1998. They also fell about 12% between the third quarter of 2013 and the second quarter of 2017. Your start date matters a great deal.

Private home prices since 1990URA price index for all private homes, Q1 2009 = 100. Quarterly.
  • Policy measures (select one for details)
Private home prices since 1990. The index climbs to a peak of about 130 in the second quarter of 1996, falls to about 72 by the end of 1998, and then recovers. It dips again in 2008 to 2009 and from 2013 to 2017, and stands at about 219 in the second quarter of 2026.0.050.0100.0150.0200.019901995200020052010201520202025219.41996-05-14: Anti-speculation measures, May 1996: seller's stamp duty, tax on short-term gains, 80% loan limit1997-11-18: Property relief, November 1997: seller's stamp duty suspended, land sales deferred1998-06-29: Off-budget property measures, June 1998: land sales suspended, stamp duty deferred2001-10-12: Second off-budget package, October 2001: property tax rebate, stamp duty cut, gains tax removed, land sales eased2005-07-19: Property policy review, July 2005: LTV limit raised to 90%, CPF housing rules eased, foreign ownership rules eased2009-09-14: Interest-only loans and Interest Absorption Scheme disallowed, September 20092010-02-19: Seller's Stamp Duty introduced and LTV limit cut to 80%, February 20102010-08-30: Property cooling measures, August 20102010-08-30: HDB measures after National Day Rally 2010: DBSS income ceiling, 5-year MOP for non-subsidised flats2011-01-13: Property cooling measures, January 20112011-12-07: Additional Buyer's Stamp Duty introduced, December 20112012-10-05: Maximum loan tenure of 35 years and tighter LTV limits, October 20122013-01-11: Property cooling measures, January 20132013-06-28: MAS introduces the Total Debt Servicing Ratio (TDSR) framework2013-08-27: HDB loan and resale measures, August 20132017-03-10: SSD holding period cut to 3 years; TDSR relaxed for equity withdrawal2018-02-19: Budget 2018: top BSD rate raised to 4% above S$1m2018-02-19: Budget 2018: Proximity Housing Grant enhanced2018-07-05: Property cooling measures, July 2018: higher ABSD and lower LTV limits2021-12-15: Property cooling measures, December 2021: higher ABSD, TDSR 55%, HDB loan LTV 85%2022-09-29: Property measures, September 2022: higher TDSR and MSR rate floor, HDB loan LTV 80%, 15-month wait-out2023-02-14: Buyer's Stamp Duty raised for higher-value properties, Budget 20232023-02-14: CPF Housing Grant raised for first-time resale buyers, Budget 20232023-04-26: ABSD rates raised, April 20232024-08-19: HDB loan LTV cut to 75% and Enhanced CPF Housing Grant raised2025-07-03: Seller's Stamp Duty holding period back to four years, rates raised by 4 ppPrivate home prices since 1990. The index climbs to a peak of about 130 in the second quarter of 1996, falls to about 72 by the end of 1998, and then recovers. It dips again in 2008 to 2009 and from 2013 to 2017, and stands at about 219 in the second quarter of 2026.0.050.0100.0150.0200.0199019952000200520102015202020251996-05-14: Anti-speculation measures, May 1996: seller's stamp duty, tax on short-term gains, 80% loan limit1997-11-18: Property relief, November 1997: seller's stamp duty suspended, land sales deferred1998-06-29: Off-budget property measures, June 1998: land sales suspended, stamp duty deferred2001-10-12: Second off-budget package, October 2001: property tax rebate, stamp duty cut, gains tax removed, land sales eased2005-07-19: Property policy review, July 2005: LTV limit raised to 90%, CPF housing rules eased, foreign ownership rules eased2009-09-14: Interest-only loans and Interest Absorption Scheme disallowed, September 20092010-02-19: Seller's Stamp Duty introduced and LTV limit cut to 80%, February 20102010-08-30: Property cooling measures, August 20102010-08-30: HDB measures after National Day Rally 2010: DBSS income ceiling, 5-year MOP for non-subsidised flats2011-01-13: Property cooling measures, January 20112011-12-07: Additional Buyer's Stamp Duty introduced, December 20112012-10-05: Maximum loan tenure of 35 years and tighter LTV limits, October 20122013-01-11: Property cooling measures, January 20132013-06-28: MAS introduces the Total Debt Servicing Ratio (TDSR) framework2013-08-27: HDB loan and resale measures, August 20132017-03-10: SSD holding period cut to 3 years; TDSR relaxed for equity withdrawal2018-02-19: Budget 2018: top BSD rate raised to 4% above S$1m2018-02-19: Budget 2018: Proximity Housing Grant enhanced2018-07-05: Property cooling measures, July 2018: higher ABSD and lower LTV limits2021-12-15: Property cooling measures, December 2021: higher ABSD, TDSR 55%, HDB loan LTV 85%2022-09-29: Property measures, September 2022: higher TDSR and MSR rate floor, HDB loan LTV 80%, 15-month wait-out2023-02-14: Buyer's Stamp Duty raised for higher-value properties, Budget 20232023-02-14: CPF Housing Grant raised for first-time resale buyers, Budget 20232023-04-26: ABSD rates raised, April 20232024-08-19: HDB loan LTV cut to 75% and Enhanced CPF Housing Grant raised2025-07-03: Seller's Stamp Duty holding period back to four years, rates raised by 4 pp

Latest: Private 219.4 (Q2 2026).

The index is a market average, not the price of any single home. Marked policy measures are shown for context only.

Table view
PeriodPrivate homes (URA price index)
Q2 2026219.4
Q1 2026218.3
Q4 2025216.4
Q3 2025215.1
Q2 2025213.2
Q1 2025211.1
Q4 2024209.4
Q3 2024204.7
Q2 2024206.1
Q1 2024204.3
Q4 2023201.5
Q3 2023196.0
Q2 2023194.4
Q1 2023194.8
Q4 2022188.6
Q3 2022187.8
Q2 2022180.9
Q1 2022174.8
Q4 2021173.6
Q3 2021165.3
Q2 2021163.5
Q1 2021162.2
Q4 2020157.0
Q3 2020153.8
Q2 2020152.6
Q1 2020152.1
Q4 2019153.6
Q3 2019152.8
Q2 2019150.8
Q1 2019148.6
Q4 2018149.6
Q3 2018149.7
Q2 2018149.0
Q1 2018144.1
Q4 2017138.7
Q3 2017137.6
Q2 2017136.6
Q1 2017136.7
Q4 2016137.2
Q3 2016137.9
Q2 2016140.0
Q1 2016140.6
Q4 2015141.6
Q3 2015142.3
Q2 2015144.2
Q1 2015145.5
Q4 2014147.0
Q3 2014148.6
Q2 2014149.7
Q1 2014151.3
Q4 2013153.2
Q3 2013154.6
Q2 2013154.0
Q1 2013152.4
Q4 2012151.5
Q3 2012148.8
Q2 2012147.9
Q1 2012147.2
Q4 2011147.4
Q3 2011147.0
Q2 2011145.1
Q1 2011142.3
Q4 2010139.2
Q3 2010135.5
Q2 2010131.7
Q1 2010125.1
Q4 2009118.4
Q3 2009110.3
Q2 200995.3
Q1 2009100.0
Q4 2008116.4
Q3 2008123.9
Q2 2008126.9
Q1 2008126.7
Q4 2007122.1
Q3 2007114.4
Q2 2007105.6
Q1 200797.6
Q4 200693.1
Q3 200689.6
Q2 200687.3
Q1 200685.8
Q4 200584.5
Q3 200583.3
Q2 200582.3
Q1 200581.9
Q4 200481.3
Q3 200480.7
Q2 200480.4
Q1 200480.3
Q4 200380.6
Q3 200380.7
Q2 200381.1
Q1 200381.6
Q4 200282.3
Q3 200282.6
Q2 200282.2
Q1 200282.8
Q4 200183.8
Q3 200187.6
Q2 200190.3
Q1 200191.1
Q4 200094.9
Q3 200097.6
Q2 2000100.4
Q1 200098.9
Q4 199995.9
Q3 199991.1
Q2 199984.3
Q1 199975.4
Q4 199871.5
Q3 199878.3
Q2 199890.1
Q1 199898.3
Q4 1997108.4
Q3 1997113.0
Q2 1997118.2
Q1 1997119.2
Q4 1996123.7
Q3 1996127.2
Q2 1996129.7
Q1 1996122.3
Q4 1995117.9
Q3 1995112.7
Q2 1995111.1
Q1 1995109.8
Q4 1994106.9
Q3 1994104.5
Q2 199493.6
Q1 199482.1
Q4 199375.1
Q3 199371.1
Q2 199364.9
Q1 199358.3
Q4 199255.3
Q3 199253.8
Q2 199251.8
Q1 199249.9
Q4 199147.6
Q3 199146.8
Q2 199145.6
Q1 199142.1
Q4 199040.3
Q3 199042.0
Q2 199041.8
Q1 199040.9
Policy measures marked on this chart (26)
  • 2025-07-03 Seller's Stamp Duty holding period back to four years, rates raised by 4 pp
  • 2024-08-19 HDB loan LTV cut to 75% and Enhanced CPF Housing Grant raised
  • 2023-04-26 ABSD rates raised, April 2023
  • 2023-02-14 CPF Housing Grant raised for first-time resale buyers, Budget 2023
  • 2023-02-14 Buyer's Stamp Duty raised for higher-value properties, Budget 2023
  • 2022-09-29 Property measures, September 2022: higher TDSR and MSR rate floor, HDB loan LTV 80%, 15-month wait-out
  • 2021-12-15 Property cooling measures, December 2021: higher ABSD, TDSR 55%, HDB loan LTV 85%
  • 2018-07-05 Property cooling measures, July 2018: higher ABSD and lower LTV limits
  • 2018-02-19 Budget 2018: Proximity Housing Grant enhanced
  • 2018-02-19 Budget 2018: top BSD rate raised to 4% above S$1m
  • 2017-03-10 SSD holding period cut to 3 years; TDSR relaxed for equity withdrawal
  • 2013-08-27 HDB loan and resale measures, August 2013
  • 2013-06-28 MAS introduces the Total Debt Servicing Ratio (TDSR) framework
  • 2013-01-11 Property cooling measures, January 2013
  • 2012-10-05 Maximum loan tenure of 35 years and tighter LTV limits, October 2012
  • 2011-12-07 Additional Buyer's Stamp Duty introduced, December 2011
  • 2011-01-13 Property cooling measures, January 2011
  • 2010-08-30 HDB measures after National Day Rally 2010: DBSS income ceiling, 5-year MOP for non-subsidised flats
  • 2010-08-30 Property cooling measures, August 2010
  • 2010-02-19 Seller's Stamp Duty introduced and LTV limit cut to 80%, February 2010
  • 2009-09-14 Interest-only loans and Interest Absorption Scheme disallowed, September 2009
  • 2005-07-19 Property policy review, July 2005: LTV limit raised to 90%, CPF housing rules eased, foreign ownership rules eased
  • 2001-10-12 Second off-budget package, October 2001: property tax rebate, stamp duty cut, gains tax removed, land sales eased
  • 1998-06-29 Off-budget property measures, June 1998: land sales suspended, stamp duty deferred
  • 1997-11-18 Property relief, November 1997: seller's stamp duty suspended, land sales deferred
  • 1996-05-14 Anti-speculation measures, May 1996: seller's stamp duty, tax on short-term gains, 80% loan limit

Source: URA (via SingStat). Data to Q2 2026. Licences and notices

Singapore’s government actively manages the market. It uses stamp duties and loan limits to cool it when prices run hot, and land supply to meet demand. That makes deep crashes less likely, but it also caps the upside and creates policy risk: the rules can change overnight, as they did in December 2021, April 2023 and July 2025.

The risks in 2026

  • Stamp duties. On a S$1.2m second home, ABSD alone is S$240,000. In our return on investment example, that buyer needs about 4% a year price growth over five years just to break even.
  • Supply. The Government Land Sales programme has 9,320 private homes on its 2026 Confirmed Lists, more than 50% above the 10-year average. In the second quarter of 2026, 15,810 of the 42,472 homes in the pipeline with planning approval were still unsold.
  • Diverging markets. URA’s private home price index rose 1.4% in the third quarter of 2026 (flash estimate). HDB’s resale price index fell 0.2%, its third straight quarterly dip. Averages hide wide differences between projects.
  • Rates. Today’s low rates will not last for a 25-year loan. A rise from 1.5% to 3.5% adds about S$935 a month to the instalment on a S$900,000, 30-year loan.
  • Illiquidity and concentration. You cannot sell a bedroom, a sale takes months, and SSD locks you in for four years. Many households already hold most of their wealth in their home.
  • Lease decay. Most homes sit on 99-year leases. Older leasehold units can lose buyers who face CPF limits when the remaining lease does not cover them to age 95.

How to decide if property is right for you

Ask four questions before you buy for investment:

  1. Does the deal work on today’s rent and a modest price growth assumption? Work out the IRR, not just the yield.
  2. Can you hold for at least four years, through a period of higher rates or a job loss, without being forced to sell?
  3. What else could the money do? CPF pays 2.5% to 4% a year with no risk, and REITs give property income in small, liquid amounts. Our comparison of REITs and physical property can help.
  4. How much of your net worth is already in property? If the answer is most of it, adding more raises your risk more than your return.

Bottom line

Property remains the most common way Singaporeans have built wealth, thanks to cheap leverage, steady demand and the absence of a capital gains tax. But in 2026 the hurdles are higher than ever: ABSD on second homes, four years of SSD, net yields around 2.5% and a growing supply pipeline. Buy when the numbers work on conservative assumptions and you can hold through a downturn, not because “property always goes up”.

investing in propertypros and consleveragecapital gains taxsingapore property
1 reader commentArchived — comments are closed

  1. Doris Chan

    It’s good reading and enlightenment .

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