Which Property Types Will Outperform in 2025? Landed, Condo, or Commercial Property?
As we navigate through a period of global economic flux and local policy recalibrations, Singapore’s property market remains resilient and dynamic. But a pressing question arises among investors, family offices, and asset managers: Which property segment will outperform in 2025—Landed Property, Condominiums, or Commercial Property?
This article explores key trends, comparative investment potential, and strategic insights to help you evaluate your next high-value move in the real estate landscape.
Table of Contents
- Singapore Property Market Overview 2025
- Landed Property: Scarcity Value and Capital Growth
- Condominiums: Liquidity, Rental Yield, and Price Ceiling
- Commercial Property: Income Security and Institutional Appeal
- Comparative Investment Metrics: Which Asset Wins?
- Key Trends Driving Performance in 2025
- Expert Tips: Choosing the Right Asset Type
- Conclusion: What Should You Buy in 2025?
Singapore Property Market Overview 2025
Singapore’s real estate market is poised for a nuanced and strategic year ahead in 2025. A combination of moderate interest rates, a highly stable political climate, and ongoing inflows of High Net Worth Individuals (HNWIs) continues to bolster confidence in the property sector. Property remains a robust channel for capital preservation, especially within high-barrier-to-entry cities like Singapore.
Several key factors will shape the landscape this year. Foreign investment—particularly from family offices and ultra-HNWIs—is expected to remain strong. Additionally, new buying patterns are emerging as investors adapt to post-ABSD regulations, leading to more strategic asset repositioning. Decentralisation trends are accelerating, moving demand away from the CBD towards city-fringe hubs. Meanwhile, industrial and logistics properties are seeing increased attention due to growing regional supply chain demands.
Landed Property: Scarcity Value and Capital Growth
Why Landed Property Remains a Coveted Asset
Landed property continues to hold a premium in Singapore’s real estate hierarchy. Representing less than 5% of all housing stock, landed homes are prized for their scarcity—a fundamental driver of long-term capital appreciation. In an environment of inflationary pressures and policy fluctuations, this limited supply acts as a natural hedge against volatility.
One of the main advantages of landed homes is the potential for significant capital appreciation. Prime districts, especially Good Class Bungalow (GCB) areas, have witnessed resilient year-on-year price growth despite rounds of policy cooling measures. Furthermore, landed homeowners enjoy the flexibility to customise, rebuild, or redevelop their properties according to personal, legacy, or investment objectives.
Another strong point is tenure. A large portion of landed homes are freehold, an increasingly rare and valuable feature in land-scarce Singapore. Online search interest for terms like landed property for sale Singapore continues to trend upwards, signalling persistent demand from affluent buyers.
“Landed homes offer long-term capital security unmatched by other asset classes.” —
Who Should Consider Landed Property?
Landed homes are best suited for legacy investors who seek long-term capital security, families seeking multi-generational living arrangements, and wealth planners who prioritise asset control and flexibility over liquidity.
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Condominiums: Liquidity, Rental Yield, and Price Ceiling
Condominiums remain a staple choice for many investors due to their accessibility, versatility, and widespread availability. While they may not match landed homes in terms of capital appreciation, condos offer superior liquidity and rental potential, making them a practical option for many buyers.
Integrated condo developments—those connected to malls, MRT stations, and commercial hubs—have consistently outperformed standard condos in both rental demand and resale premiums, as reported by EdgeProp.sg.
One of the main advantages of condominiums is their lower entry price relative to landed and commercial properties. They also appeal to investors seeking consistent rental yields in prime locations with high tenant demand. Additionally, the burden of property upkeep is significantly reduced due to shared maintenance frameworks.
However, there are some drawbacks. Additional Buyer’s Stamp Duty (ABSD) can significantly impact returns for those acquiring multiple units. Leasehold depreciation is another consideration, especially as condos age. Moreover, price appreciation tends to slow once developments hit their peak valuation.
Overall, condominiums are ideal for younger investors or those looking for flexible, income-generating properties in urban centres.
Fire Sale Condo unit at Scotts Square – Selling below original purchase price by Sgd$ 1 million.
Commercial Property: Income Security and Institutional Appeal
Commercial Property is the 2025 Dark Horse
Commercial real estate is emerging as one of the most attractive segments in 2025, driven by strong fundamentals and favourable regulatory conditions. This category encompasses strata offices, retail units, shophouses, and industrial buildings.
The recent boom in conservation shophouses—particularly in areas like Tanjong Pagar, Kampong Glam, and Little India—has captured investor attention. Prices have reached new highs, underpinned by their heritage value and limited supply. Meanwhile, the decentralisation of office demand has spurred interest in fringe CBD areas such as Paya Lebar, Woodlands, and Jurong East, where modern business hubs are being developed.
Singapore’s strategic position as a logistics and financial gateway has also led to a surge in demand for industrial and warehouse assets. Terms like industrial property for sale Singapore and commercial building for sale Singapore have become increasingly common in investor searches.
Why Commercial Property Might Outperform
The commercial sector enjoys a unique regulatory advantage—purchases are typically exempt from ABSD, making it an appealing alternative for portfolio diversification. Furthermore, commercial properties offer institutional-grade income potential, especially in resilient sectors like logistics and decentralised office spaces. With rising rents and limited new supply in key submarkets, investors are likely to benefit from strong rental reversion in the coming year.
According to Aberdeen Investments, Singapore is one of the top choices for Asia-Pacific real estate allocations, particularly in the commercial real estate segment.
Commercial Property For sale in Singapore – Freehold Hotel in Little India Heritage Area
Comparative Investment Metrics: Which Asset Wins?
| Property Type | Yield Potential | Capital Appreciation | Liquidity | Regulatory Pressure | Entry Price (approx.) |
|---|---|---|---|---|---|
| Landed Property | Low-Medium | High | Low | Medium | SGD 4–20M+ |
| Condominium | Medium | Medium | High | High | SGD 1–5M |
| Commercial | High | Medium-High | Medium | Low | SGD 2–100M+ (strata) |
Note: These metrics are general indicators and vary by location, zoning, and unit size.
Key Trends Driving Performance in 2025
H2: Top Forces Shaping 2025 Real Estate
The following trends are expected to shape real estate performance in 2025:
Firstly, we are seeing post-ABSD asset repositioning, where investors are reshuffling their portfolios toward exempted or higher-yielding asset types such as commercial properties. Secondly, private wealth—especially from family offices—is flowing increasingly into commercial assets like conservation shophouses and decentralised office spaces.
The continued growth of family offices in Singapore adds further weight to this trend, as such entities typically have long-term capital goals and prefer real estate for its relative stability. Government initiatives aimed at decentralising business hubs are also creating new hotspots for real estate investment. Furthermore, the industrial sector is showing recovery, as indicated by the URA Industrial Price Index, driven by regional logistics and manufacturing demand.
Finally, hybrid work models are spurring the need for flexible, mixed-use commercial spaces, which are now in high demand.
Additional Resources:
Expert Tips: Choosing the Right Asset Type
For HNWIs and Family Offices
High Net Worth Individuals and family offices should prioritise landed properties as long-term legacy assets. These provide capital security and redevelopment flexibility. Additionally, conservation shophouses present unique opportunities for capital stability and cultural value preservation. Mixed-use or income-producing commercial buildings can further enhance portfolio resilience.
For Global Investors and REITs
International investors and institutional players such as REITs should look towards strata offices on the CBD fringe, which offer attractive price points with growth potential. Warehousing and logistics assets are another strong play, providing robust yields in a high-demand segment. Co-investment or syndication models also make shophouse acquisitions more accessible and less capital-intensive.
How to Evaluate Commercial Property Value in Singapore
To evaluate a commercial property’s value, focus on Net Operating Income (NOI), which reflects true profitability. Consider the property’s location and tenant profile, as both affect rental resilience. Future redevelopment potential and land use zoning are also critical. Finally, tenure (freehold or leasehold) impacts long-term valuation and should not be overlooked.
Conclusion: What Should You Buy in 2025?
Deciding between landed, condo, or commercial property ultimately depends on your individual investment goals.
If you’re looking to preserve wealth and build a legacy, landed property offers unmatched capital growth and asset control. For those seeking portfolio flexibility and yield, commercial property provides compelling returns and institutional appeal. If liquidity and urban convenience are your top priorities, condominiums remain a viable and accessible option.
At ERG Singapore, we guide investors through strategic acquisitions in the landed, condominium, and commercial property markets. Our expertise ensures you make confident, profitable, and informed decisions.
Explore our listings here or list your property with us to unlock your next move in 2025.
Related Blogs:
- Singapore Property Outlook 2025: Key Trends
- Shophouse Investment Strategies in Singapore
- How to Evaluate Commercial Property Value in Singapore
