The Singapore real estate market continues to thrive, driving the impressive performance of local real estate listed companies last year. Analysts believe that as long as there are no major external shocks or the economy does not fall into recession, the real estate market is expected to maintain an upward trend due to the country's advantageous position as a safe haven for capital.
Last weekend, conflict reignited in the Middle East, causing fluctuations in the financial markets as funds shifted towards safe-haven assets. However, analysts find it difficult to determine the extent to which the situation will impact the Singapore real estate market.
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Zhang Minzhang, Executive Director of Research and Consultancy at Savills, stated that geopolitical instability may prompt some funds originally planned for Dubai to shift towards Singapore. However, this transfer has not yet formed a clear trend.
In an interview with Lianhe Zaobao, Zhang explained that the sources of capital attracted to the Dubai and Singapore markets are different. The Dubai market primarily receives funding from Middle Eastern countries, while the Singapore market is more favored by institutional investors and high-net-worth individuals from Northeast Asia.
He said, &#34;Foreigners can seek alternative investment tools such as gold, bonds, and stocks, and for those willing to take risks, they may even turn to the cryptocurrency market. In contrast, the 60% Additional Buyer’s Stamp Duty (ABSD) makes some feel that bearing the volatility risk of assets like Bitcoin may be more worthwhile. Investing in assets other than private residences in Singapore may still yield better wealth preservation effects.&#34;
<h3>Ultra-high-net-worth individuals favor Singapore, luxury home demand remains robust</h3>
Huttons CEO Ye Runming holds a more optimistic view. In an interview, he stated that although Dubai is one of the world's top financial centers, the conflicts in the Middle East have shaken its stable image, while Singapore, as the fourth largest financial center globally, ranks high in stability. Coupled with the strong Singapore dollar, it is not surprising that more wealth is flowing in.
Ye said, &#34;Ultra-high-net-worth individuals value a stable environment and low tax rates. As more wealth flows into our country, it will inevitably drive demand for local real estate. If the conflicts in the Middle East persist for a long time, the demand for luxury homes in our country may steadily rise.&#34;
ERA Realty President Zhu Yongqiang also mentioned that the latest geopolitical developments have caused turmoil in the financial markets, leading developers and buyers to adopt a cautious approach when assessing the changing geopolitical risks.
Zhu said, &#34;The uncertainty of geopolitics may slow down recent transaction volumes, but since the local market is primarily driven by owner-occupier demand, along with calibrated supply management and prudent financing regulations, these structural safeguards significantly reduce the volatility risk brought about by excessive speculation.&#34;
When discussing price impacts, Ye pointed out that during turbulent times, many may choose to &#34;flight to safety,&#34; thus not having a significant negative impact on local real estate prices. However, it remains difficult to predict the extent of the impact from the current situation in the Middle East
<h4>Extended Reading</h4>
Local luxury private home prices rose 4% in January

 Private home rents have risen for two consecutive months, with a January increase of 0.6%


He cited the 2003 Iraq War as an example, pointing out that while real estate prices fell within a month, they subsequently achieved a growth of 2.8% within the following year.
Over the past year, the local real estate market has seen continuous strong sales, buoyed by a lower interest rate environment, and the performance of locally listed real estate companies has been exceptionally outstanding, with most sales breaking past records.
Local real estate giant City Developments is expected to see a revenue growth of 24% in 2025, with its Singapore real estate business being a major highlight. Last year, the group sold a total of 1,657 units, including executive condominiums, with sales reaching SGD 4.35 billion, resulting in a net profit of SGD 630 million, an increase of 213%.
UOL's performance highlight for the fiscal year 2025 is the record high in local residential sales, with sales bookings reaching SGD 5.1 billion, far exceeding the SGD 1.3 billion from the previous fiscal year. The company also plans to launch the Thomson Garden project in the fourth quarter of this year, while new projects on Dorsett Road and Hougang Central will be launched next year.
RHB analyst Vijay Natarajan stated in an interview with Lianhe Zaobao: “Among the real estate companies we studied, City Developments is our top pick because it clearly outlines its value release plan, its market share in the local residential market, and the significant discount on the revalued net asset value (RNAV).”
Outside the scope of the study, Vijay believes that UOL, due to its redevelopment plan for Marina Square, is expected to release potential value and become a key revaluation catalyst. UOL plans to transform Marina Square into Singapore's first super-large mixed-use development project, with the latest progress expected to be announced in the first half of this year
<h3>Market Fundamentals Healthy, Investment Opportunities Still Viewed Positively</h3>
DBS Group Research and UOB Kay Hian both gave City Developments a &#34;Buy&#34; rating, with target prices of SGD 12 and SGD 11.2, respectively, while OCBC Group Research assigned a &#34;Hold&#34; rating in a report on Monday (March 2), raising the fair price from SGD 7.49 to SGD 10.4.
DBS Group Research believes that the operational momentum of Hong Leong Group remains solid, project development returns are accelerating, and capital management maintains strict discipline, thus retaining a &#34;Buy&#34; rating for Hong Leong Group with a new target price of SGD 13.
Vijay said, &#34;The fundamentals of Singapore's market remain healthy, and its status as a safe haven continues to attract global investors. Unless there is a significant external shock or economic recession, market momentum will be sustained.&#34;
Phillip Securities Chief Stockbroker Tan Yingying stated that conflicts in the Middle East could drive up inflation and undermine consumer confidence. The U.S. may decide to keep interest rates unchanged in March, which could slow the rise of real estate stocks

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The Singapore real estate market remains strong, driving excellent performance from local listed companies. Analysts point out that as long as there are no major external shocks, the market is expected to maintain an upward trend. Although the turmoil in the Middle East has led to a shift of funds towards safe-haven assets, analysts believe the impact on the Singapore real estate market is still unclear. Zhang Minzhang from Savills stated that geopolitical instability may cause some funds to shift from Dubai to Singapore, but a clear trend has not yet formed

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The local real estate market is developing strongly with impressive commercial performance; the Middle East situation may ease the upward trend | Lianhe Zaobao