Condominiums in Singapore have long been seen as both a lifestyle aspiration and an investment asset. In 2025, the question many potential buyers and investors are asking is: why are condos still so expensive, and is it still worth buying one? To answer this, we will examine the price movements across the Core Central Region (CCR), Rest of Central Region (RCR), and Outside Central Region (OCR), consider the factors that have driven prices since 2000, weigh the debate between 99-year leasehold and freehold tenure, and evaluate the rental and investment case for both new launches and resale properties.

Current Market Snapshot in 2025

Official figures from the Urban Redevelopment Authority (URA) show that prices remain firm in 2025, despite global interest rate volatility and a steady flow of government cooling measures over the past decade. In the first quarter of 2025, private residential property prices grew by 0.8 per cent quarter-on-quarter, with non-landed homes in the CCR rising 0.8 per cent, the RCR up by 1.7 per cent, and the OCR up 0.3 per cent. Rentals also climbed by 0.4 per cent. The trend continued into the second quarter, where overall private home prices rose by 1.0 per cent. 

Interestingly, CCR prices surged by 3.0 per cent, the RCR dipped by 1.1 per cent, and OCR prices rose 1.1 per cent. Rentals also remained positive, growing by 0.8 per cent in the same quarter .

This snapshot shows two things. First, demand remains resilient across the spectrum, particularly in the luxury and mass-market segments. Second, volatility at the regional level continues to exist. For instance, the city-fringe RCR softened in 2Q25, perhaps reflecting a pause in launches or affordability constraints, while prime CCR homes found renewed interest, likely from wealthier buyers or foreign investors looking for safe-haven assets.

The Long-Term Price Story: Since 2000

To understand today’s price levels, we must look at how far the market has come since Y2000. URA’s non-landed price indices reveal that between 2000 and 2025, prices in all three regions have at least doubled, with OCR and RCR seeing even greater relative appreciation than CCR.

In broad terms, CCR prices have risen by about 120 to 160 per cent since 2000, RCR prices by about 160 to 220 per cent, and OCR prices by about 180 to 240 per cent . The outperformance of RCR and OCR reflects Singapore’s transformation over this period. While the traditional prestige of CCR districts such as Orchard and Tanglin has remained intact, many suburban areas have been re-rated upwards due to new MRT lines, integrated town centres, and improved amenities. A family today buying in Jurong East or Punggol enjoys vastly better connectivity and lifestyle offerings than twenty years ago, which the market has priced in.

This also highlights the enduring role of government town planning. The decentralisation strategy, the creation of regional centres, and the continuous investment in public transport have lifted the attractiveness of suburban homes. Consequently, OCR condos that once looked like affordable options for middle-class families now command strong prices, with some launches surpassing $2,000 per square foot.

Why Are Condos Getting More Expensive?

The surge in condo prices cannot be attributed to one factor alone. Singapore’s status as a global financial hub, the scarcity of land, and the willingness of households to allocate a large share of savings into property all combine to sustain high valuations.

Land scarcity remains the most fundamental driver. The Government Land Sales programme sets the tone for pricing, and developers compete aggressively for choice sites. When land is sold at record bids, the eventual launch price must rise correspondingly. Construction costs have also escalated, with labour constraints and material prices adding pressure. At the same time, the financing system, anchored by the Total Debt Servicing Ratio (TDSR), ensures that buyers entering the market are financially stable, thereby reducing the risk of fire sales.

Another driver is demographics and household wealth. Incomes have generally grown, and savings rates remain high. Even with the rise in interest rates globally in 2022 and 2023, households in Singapore proved resilient. Mortgage arrears remained very low, and many buyers have the liquidity to comfortably fund down payments. This wealth buffer allows demand to continue even when prices are historically high.

Rental demand also plays a role. The surge in rental rates in 2022 and 2023, followed by steady growth in 2024 and 2025, has attracted investors seeking yield. In a city where yields average 2 to 4 per cent, the attraction lies less in cash flow and more in capital preservation and the potential for long-term appreciation.

Rental Yields in 2025

Gross rental yields in 2025 vary by region. In the CCR, they average around 2.0 to 2.7 per cent, reflecting high capital values relative to rent. In the RCR, yields are a touch higher, around 2.5 to 3.2 per cent, and in the OCR, they are strongest, around 3.0 to 4.0 per cent.

For landlords, OCR properties may provide better yield, but this comes with considerations about tenant pool stability, vacancy risks, and the cyclical nature of suburban rental demand. CCR landlords, while accepting lower yields, enjoy the prestige of blue-chip assets and access to high-net-worth tenants, especially expatriates working in finance or technology sectors.

The URA rental index confirms that after a surge in 2022–2023, rental prices have moderated but remain on an upward trajectory in 2025. In 2Q25, non-landed CCR rents rose 1.8 per cent, RCR rents were flat, and OCR rents edged up 0.1 per cent. 

This suggests that while the rental frenzy has cooled, demand is still underpinned by foreign talent inflows and local households renting while awaiting new home completions.

99-Year Leasehold vs Freehold

One of the enduring debates in Singapore property investment is whether to buy 99-year leasehold or freehold. Both have merits, and the decision often depends on holding period and objectives.

Leasehold condos, especially new launches, often outperform in the first decade or two. Buyers are attracted to modern designs, new facilities, and strategic locations. Because the entry price is lower compared to freehold, yields can be more attractive in the short to medium term. However, as the lease runs down past the 40 or 50-year mark, prices can stagnate or fall sharply unless the development is primed for en-bloc sale.

Freehold condos, on the other hand, offer tenure security and tend to hold value better over the very long term. They appeal to legacy buyers who want to pass property to the next generation. However, the premium paid for freehold means yields are typically lower. For example, a freehold unit in the CCR may rent for the same absolute amount as a nearby leasehold unit, but cost significantly more to buy, reducing rental yield.

In 2025, the pragmatic approach is to match tenure choice with horizon. Investors with a ten-year view may find leasehold condos sufficient, while those planning to hold for life or to bequeath to children may prefer freehold.

New Launches vs Resale

Another critical decision is whether to buy new launch condos or resale units. New launches come with the advantages of progressive payment, developer warranties, and modern specifications. For many families, the appeal of a brand-new home is irresistible. However, launch prices often include a premium, and buyers may face construction wait times of three to five years.

Resale properties, by contrast, are typically available immediately. Buyers can rent them out from day one or move in without waiting. Resale condos are also often priced lower on a per-square-foot basis than nearby new launches. In markets where launch activity has slowed, as it did in 2Q25, resale properties can represent relative value. Investors can benefit from purchasing well-located resale units at a discount, especially if they can identify motivated sellers.

Is It Still Worth Buying a Condo in 2025?

The short answer is: yes, but with caution. For own-stay buyers, the decision is less about timing the market and more about finding a home that meets lifestyle and location needs. The utility value of living in a convenient, well-connected condo often outweighs worries about short-term fluctuations.

For investors, the case is more complex. With gross yields at 2 to 4 per cent, condos in Singapore are not yield-heavy assets. Instead, they are vehicles for wealth preservation, modest leverage, and exposure to long-term capital appreciation. The fact that prices have doubled or tripled since 2000, and continue to rise in 2025 despite higher financing costs, underscores their resilience. However, investors must be realistic: buying at today’s valuations requires discipline in choosing projects with strong tenant pools, micro-location advantages, and sensible entry prices relative to peers.

And most importantly, plan your finances properly to avoid surprises along the way. Read more on the hidden cost of buying a condo in Singapore here.

Conclusion

Condos in Singapore are expensive in 2025 because of a confluence of factors: limited land, rising construction costs, resilient household demand, and sustained rental interest. Over the past twenty-five years, OCR and RCR properties have delivered the most substantial price appreciation, reflecting the success of decentralisation and the uplift in suburban living standards. CCR properties continue to hold their premium, attracting affluent buyers seeking prestige and long-term value.

Rental yields remain modest by global standards, but consistent demand supports the investment case. The choice between 99-year leasehold and freehold, and between new launches and resale, ultimately depends on the buyer’s objectives, horizon, and financial capacity.

Is it still worth buying a condo in Singapore? For most households and investors, the answer remains yes, provided expectations are calibrated. Own-stay buyers will continue to pay for convenience and quality of life. Investors can still find value by focusing on micro-locations, resale discounts, and rental resilience. In a city where property ownership is both an aspiration and a hedge against inflation, condos remain a cornerstone of wealth strategy in 2025.