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Why is the Singapore Property Market Heading For A Bull Run?

Singapore’s property market has been surging, and is continuing to surge further. With HDB prices rising for the 11th straight month, and condo resale prices hitting a new high, the question on everyone’s minds is – are we headed for a bull run?

First and foremost, you might ask: what is a bull run? A property bull run happens when there are more buyers in the market than sellers for a certain period of time. This will end up pushing prices up, as the economic law of supply and demand shows that an increased demand leads to an increased price.

In recent months, the real estate industry has seen prices increase dramatically in a relatively short period of time, and it looks nowhere near slowing down. But does this mean that the Singapore property market is heading for a bull run? Below, we look at some reasons that are fueling this surge, and why they’ll continue to push up demand in 2021 and beyond.

HDB Upgraders

With a bumper crop of BTO flats hitting their minimum occupancy period (MOP) over the last year, there’s been an influx of HDB upgraders looking to upgrade to a private property. This surge in demand has been one of the underlying factors pushing demand sky-high, and as more BTO flats hit MOP upcoming, the demand is set to rise further. What’s fueling this demand is also the change in perceptions of HDB flat owners. Where previously, HDBs were considered a long-term asset, public perception has since shifted, with home investors turning to private properties as a means of growing their wealth.

Work-From-Home Culture

Due to restrictions placed to prevent further spread of the virus, work-from-home has slowly become ingrained in our daily life and social culture. As people adjust to working in their residential units, demand for larger residential units with convenient amenities surrounding them will increase, pushing up prices further.

Low Interest Rates

At the end of December 2020, the 3-month Singapore Interbank Offered Rate (SIBOR) hit an all-time low of 0.41%. Additionally, both floating and fixed home loans with interest rates of 1.8% were easily available. With such low interest rates, it’s become more affordable than ever for homeowners to upgrade to a private property, further fueling the demand and causing prices to go up.

New Potential En-Bloc Cycle

En-bloc movements might be seeing a revival in 2021, considering that the current unsold inventory has fallen to a low of 21,634 in Q1 2021. With developers looking to replenish their land banks, and the government continuing to moderate land sales via the Government Land Sales (GLS) programme, these different pressures mean that the en bloc market is likely to garner much more interest this year, as the intense competition for GLS sites might push developers to look for other avenues to acquire land – particularly through en-bloc sales.

With these different factors in mind, it’s quite likely that we’ll continue to see a sustained increase in prices for the near future. In fact, with the low supply and high demand, Singapore looks set to be headed straight for a bull run.

Looking to take advantage of the market opportunity, but unsure where to begin? UnlockHome guides you along the entire investment process, providing you with the most up-to-date market insights and insider info so you can make the best investment decisions. Drop by our website at and give us a call today!

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