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Higher costs, lower returns: Why are Singaporeans still betting on real estate?

Returns are often lower than equities, but policy and psychology keep property at the centre of wealth

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Ry-Anne Lim

Ry-Anne Lim

Published Fri, Apr 10, 2026 · 03:30 PM
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    • While residential property has delivered solid gains, observers say other assets such as equities often outpace it over the longer term.
    • Singapore's private residential market has delivered annualised returns of roughly 4% over the past decade.
    • Since property isn't priced in real time, it shields owners from daily market swings common in stocks and funds, says Endowus chief investment officer Hugh Chung.
    • Wealth in Singapore is increasingly built through intergenerational transfers, notes NUS Emeritus Professor Chua Beng Huat.
    • While residential property has delivered solid gains, observers say other assets such as equities often outpace it over the longer term. DESIGN: GARETH CHUNG, BT
    • Singapore's private residential market has delivered annualised returns of roughly 4% over the past decade. PHOTO: BT FILE
    • Since property isn't priced in real time, it shields owners from daily market swings common in stocks and funds, says Endowus chief investment officer Hugh Chung. IMAGE: PIXABAY
    • Wealth in Singapore is increasingly built through intergenerational transfers, notes NUS Emeritus Professor Chua Beng Huat. PHOTO: BT FILE

    [SINGAPORE] At dinner tables and across generations, one piece of financial advice tends to resurface: buy property if you can.

    Setting aside Build-To-Order flats that are sold at a market discount – thus implying resale gains – the assumption is that real estate, more broadly, is a reliable means of wealth accumulation, with prices always rising.

    There is even the perception – nurtured by past booms – that massive gains are possible.

    BrunchSingapore propertyPropertyResidential propertySingapore residential propertyResidentialProperty investment

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