Why stable property prices matter to the Singapore government, but foreigners don’t see it that way

One of the most common things I hear from foreigners is this:

“Singapore property prices always go up.”

On the surface, that sounds like hype. No asset goes up in a straight line.

But when you zoom out and understand how Singapore’s property system is designed, you begin to see why this perception exists — and more importantly, why stable property prices are actually in the government’s best interest, not rising prices at all costs.

Let’s break this down properly.

The Singapore government doesn’t want high prices — it wants stable prices.

Contrary to popular belief, Singapore’s government isn’t trying to pump property prices. What it wants is credibility, stability, and sustainability.

Property is the single largest store of household wealth in Singapore. Roughly half of household assets sit in real estate, and about 80% of citizens own their homes. If prices collapse, household balance sheets take a hit, consumer confidence falls, and the financial system comes under pressure. That’s not theoretical — it’s exactly what happened in many countries during past housing crises.

This is why Singapore’s approach is preventive, not reactive. Cooling measures like ABSD, tighter LTV limits, and supply injections aren’t designed to “kill” the market. They’re designed to prevent bubbles before they threaten stability.

Think of it as price management, not price suppression.

The state is the ultimate landowner — stability protects national wealth.

Another often-overlooked point: the Singapore government owns about 90% of all land.

When land is sold via the Government Land Sales (GLS) programme, proceeds flow into state reserves. Higher land values increase fiscal capacity for infrastructure, healthcare, and long-term national projects. But push prices too high, and affordability becomes a political and social problem.

So again, the incentive isn’t runaway appreciation. It’s controlled, gradual growth aligned with incomes and GDP.

This balance is why Singapore adjusts policy frequently — not because the system is weak, but because it’s actively managed.

Why foreigners see Singapore property as a “safe haven”?

From a foreign buyer’s perspective, Singapore checks almost every box.

Politically, it is one of the most stable countries in the world, with transparent governance, strict adherence to the rule of law, and no history of property expropriation. Economically, it runs consistent budget surpluses and maintains one of the strongest currencies in Asia. Singapore also ranks among the least corrupt countries globally, reinforcing trust in institutions and contracts.

Property transactions are clean, digital, and government-guaranteed. Titles are secure. Taxes are known upfront. There are no sudden rule reversals after purchase.

To a high-net-worth individual sitting in a volatile region, that clarity matters more than short-term upside.

Limited land, long-term planning, and predictable supply

Singapore is both a city and a country, with severe land constraints.

Urban planning is not ad hoc. The URA Concept Plan and Master Plan provide visibility into the future for decades. Land release is deliberate, density is controlled, and major transformation zones, such as the Greater Southern Waterfront or Jurong Lake District, are rolled out slowly and intentionally.

Because supply is constrained and predictable, prices don’t behave like speculative markets elsewhere. They don’t spike uncontrollably — but they also don’t collapse.

This structural scarcity is a major reason foreigners believe prices “always go up.” Over the long term, constrained supply plus steady demand does exactly that.

No capital gains tax — long-term thinking is rewarded.

Singapore does not impose capital gains tax on genuine property investments. For global families thinking about legacy planning, this is huge.

Property here is treated less like a trading chip and more like a long-term store of value — similar to how Swiss assets are perceived globally.

Source: URA

So do prices really always go up?

Not every year. Not every cycle.

But over decades? Yes — in aggregate.

The URA Private Property Price Index has risen many times over since the 1970s, despite multiple downturns and heavy cooling measures. The key difference is this: Singapore doesn’t allow uncontrolled leverage or forced liquidations at scale.

Because the government controls land, credit conditions, and supply, prices behave more like a slow-moving, appreciating asset — not a casino.

That’s not manipulation. That’s design.

And once you understand that design, you’ll understand why both the government and foreigners value stability above everything else.

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Having worked with many foreign buyers over the years, Ben and Vann specialise in helping foreigners navigate Singapore’s tightly regulated property market with clarity and confidence. From ABSD planning and eligibility structuring, to choosing the right districts, developments, and exit strategies, they guide clients through every step — not just to buy a property, but to buy the right one. Their approach is grounded in data, policy understanding, and real transaction experience, helping foreigners secure Singapore property safely, compliantly, and with long-term capital preservation in mind.

Contact us to see how we can help