To The Moon

When DBS Bank recently suggested that Singapore’s average psf price of private homes could exceed S$4,000 — roughly double today’s level, it sparked plenty of debate.

Double? That’s a bold prediction.

In the first three quarters of this year, the median psf for non-landed private homes sits at about S$2,139, according to URA data. So if that 1,000 sq ft condo costs S$2.14 million today, it might be S$4.05 million by 2040. That’s not just a number — that’s the difference between “maybe one day” and “definitely not in this lifetime” for many of us.

Some people shrugged and said, “Well, Singapore property always goes up.” Others called it unrealistic. Me? I think it really depends on timing, policy, and what kind of investor we are.

I get the appeal of owning property. There’s a certain satisfaction in knowing our money goes into something tangible — a space we can live in, renovate, or even rent out one day. If we only own one home, it’s not just an investment; it’s also your shelter and comfort zone.

But when it comes to buying a second property, I’m a lot more hesitant.

The Additional Buyer’s Stamp Duty (ABSD) alone can make your head spin. Add in mortgage limits, property taxes, and maintenance costs, and suddenly that “investment property” starts looking more like a long-term commitment with a hefty monthly bill attached.

Sure, the rental income might offset some of that, but it’s never as simple as it sounds. Finding tenants, managing leases, handling repairs — it all takes time and patience. And honestly, after juggling work and life, I don’t exactly dream of chasing late rental payments or replacing air-con compressors on weekends.

That’s why REITs often come up as an interesting alternative. I don’t own any — not yet, anyway — but I can see why many investors like them. They offer exposure to real estate from shopping malls and offices to hotels and logistics centres without the stress of being a landlord. Plus, many REITs pay regular dividends, which can feel like getting rent without the responsibility.

Of course, REITs have their own risks too. Their prices move with market conditions and interest rates, and the payouts aren’t guaranteed. But compared to owning physical property, they offer flexibility — we can buy, sell, or rebalance anytime, without waiting months for a buyer.

So, if property prices really do double in the next decade and a half, it’ll reshape more than just the housing market. It could make private homes feel even more out of reach for many Singaporeans, while pushing more people toward financial instruments like REITs or fractional property investments.

As for me, I still see the value in owning a home — it’s security, stability, and something I can truly call my own. But when it comes to investing purely for returns, I’d rather keep things simple, manageable, and stress-free.