Singapore could see up to 320,000 new homes/apartments built over the next 15 years, with property prices rising as much as 55% by 2040, according to a new DBS report.
The study projects that between 200,000 and 300,000 homes—possibly even 320,000—will be added across both public and private sectors to support a projected population of 6.9 million. DBS analysts attribute this boom to three key drivers: population growth, urban renewal, and decentralisation.
Major Redevelopment Sites
Much of the new supply will come from redeveloping major plots of land, including the Paya Lebar Air Base, which will be gradually decommissioned from 2030. The site alone could yield 150,000 new homes.
Other significant housing areas include:
- Bukit Timah Turf City: 15,000–20,000 homes
- Former Kranji Racecourse: 14,000 homes
- Marina South: 10,000 homes
- Sembawang Shipyard: 10,000 homes
- Keppel Golf Course: 9,000 homes
- Mount Pleasant and Pearl’s Hill: 6,000 each
Demand Beyond Population Growth
Even if Singapore’s population stabilises, demand for housing is expected to remain strong. Smaller household sizes and the rising preference for independent living—both among the elderly and younger residents—mean more homes will be needed in the coming years.
Prices to Climb Gradually
DBS expects housing prices to increase by 2–3% annually, translating into a total rise of 35–55% by 2040. While the report doesn’t distinguish between public and private housing, it notes that government control of HDB prices will help maintain affordability for first-time buyers.
Risks and Economic Outlook
DBS highlights that the housing outlook depends heavily on three factors: population growth, economic vitality, and government stability. Any weakness in these areas could trigger a market correction.
Still, with the median monthly income forecast to exceed S$7,000 by the late 2030s and Singapore’s economy expected to double in size to reach the US$1 trillion GDP mark, the overall trajectory remains upward.
Singapore’s limited land supply, robust economy, and rising incomes suggest that, barring unexpected shocks, the property market will stay strong for years to come.
