Can Property Price Keep Going Up? Here Are 5 Hidden Risks!

Added: 2026-05-18

[00:00:00]The Singapore property market has shown remarkable resilience over the past two decades, supported by strong economy, stable government, and continued demand.

[00:00:09]However, going forward, there are five major risks that could challenge the property market in the foreseeable future.

[00:00:16]While property in Singapore remain one of the safest long-term asset class globally, buyers and investors should still understand the potential headwind ahead.

[00:00:26]Continue to watch on. Don't skip because this video is very important to you.

[00:00:34]One major risk come from rising oil prices caused by ongoing geopolitical conflict, especially tension in the Middle East and destruction to global shipping routes.

[00:00:44]Singapore is a small and open economy that import almost all its energy need.

[00:00:50]Any substantial increase in crude oil prices will lead to higher inflation.

[00:00:55]Higher inflation reduce consumer purchasing power and weaken market sentiment. This has already been felt in the resale market.

[00:01:02]To be very frank in the view, selling and letting out now is extremely slow.

[00:01:06]This is the worst I've ever experienced in my 17 years in the industry.

[00:01:11]Trust me, this is with the exception for new home segment, which is still business as usual.

[00:01:18]Higher oil prices will also lead to higher construction costs.

[00:01:21]Buyers will have to bear the brunt of higher property prices.

[00:01:25]Here, the key question is how much higher can buyer tahan?

[00:01:30]And will be these buyers be able to offload them in the resale market to the next buyer at a much higher price that they have originally paid for?

[00:01:38]Well, this is always a million-dollar question.

[00:01:41]As long as the URA PPI keep going up, there's always that possibility to profit.

[00:01:46]But, if the PPI remain stagnant in the years ahead, then this is another story.

[00:01:55]Artificial intelligence is another major risk that may reshape the Singapore economy over the next few decades.

[00:02:03]The Ministry of Manpower recently acknowledged that AI will transform jobs and disrupt part of the workforce.

[00:02:10]Although Singapore is actively encouraging AI adoption to improve productivity, many white-collar jobs could eventually be replaced or reduced.

[00:02:19]Administrative work, customer service, finance, marketing, and even part of professional service are increasingly exposed to automation.

[00:02:29]Real estate sales is one of them.

[00:02:32]Here, I predict that in the years ahead, AI will replace 20 to 30% of white-collar jobs, especially those jobs that have a fixed workflow and are repetitious.

[00:02:42]Here, we haven't even talked about outsourcing to cheaper offshore country.

[00:02:47]Singapore property market depend heavily on strong PMEET workforce with stable income.

[00:02:52]But if AI will even reduce job opportunity, this will limit wage growth. Younger buyers may become more cautious about taking large mortgages.

[00:03:02]Then, there's also the risk of widening income inequality.

[00:03:06]Higher-skilled worker may benefit greatly from AI, while middle-income workers could face stagnating wages.

[00:03:13]This may eventually create a more divided property market, where the top 20% stay in private properties, while the remaining 80% live in their humble HDB flats.

[00:03:27]The Johor Bahru Singapore RTS Link, expected to begin operation by the end of 2026, could become a major game-changer for both economies.

[00:03:36]Combined with the Johor Singapore Special Economic Zone, it may strengthen economic integration between the two countries.

[00:03:44]In my opinion, the RTS plus deliberation of taxi services between the two countries will impact Singapore retail market significantly.

[00:03:53]These have already affected local retail, food and beverage businesses, and service industry.

[00:03:59]We have already seen shop closure or even replaced by other businesses.

[00:04:03]If this trend continue, Singapore will soon lose our unique identity.

[00:04:09]Here, I can't stop asking myself this question when I was in Shenzhen last year.

[00:04:13]Will Singapore be like Hong Kong in the near future?

[00:04:16]An old and expensive city to live, work, and play?

[00:04:23]Singapore is facing a rapidly aging population and one of the world's lowest birth rate.

[00:04:28]As more Singaporeans enter retirement age, many may choose to downgrade from a larger home into smaller condominium or even HDB flats to unlock cash for retirement.

[00:04:40]This will gradually increase resale supply, particularly in older estate and matured condominiums.

[00:04:46]At the same time, there may be a fewer younger local buyers entering the market.

[00:04:51]Since Singaporeans are choosing to have only one or none at all.

[00:04:55]But when it comes to property, they always want to have more.

[00:04:58]Hang out. Recently, DPM Gan said Singapore need to increase our immigration number to support economic growth.

[00:05:06]Singapore must remain attractive to foreign professionals, wealthy individuals, and citizens that are of child-bearing age.

[00:05:14]This is the only silver lining to support property prices, just like what happened a decade ago.

[00:05:20]But the continued influx of new citizens may unsettle some local Singaporeans from jobs to school and so on.

[00:05:27]Put it bluntly, we need them. Without them, Singapore economy would have collapsed long time ago.

[00:05:33]But at the same time, if too many of them call this our home, I can't help but wonder if Singaporeans are being labeled as having lost its hungriness in this CNA video.

[00:05:44]Or are we really are comfortable in the shelter of our BTO flats.

[00:05:48]So, that Finally, one key risk is entering the property market during the peak or near the peak.

[00:05:56]Can we safely say that property prices today is at an all-time high?

[00:06:01]Private home prices, particularly in the OCR, have risen sharply.

[00:06:06]Many buyers today have only experienced an up market.

[00:06:09]They have yet to experience what is a down cycle.

[00:06:12]And many assume prices will always uh continue climbing up.

[00:06:16]This is further reinforced by Nicholas Mak's comments in this podcast, which I will leave in the links in the description below.

[00:06:24]However, history shows that property markets move in cycle.

[00:06:28]If economic growth slow, unemployment rate rise, or interest rate stay elevated, price growth could stagnate or even correct in some segment.

[00:06:38]With the exception for maybe executive condominium, which I still believe enjoy government subsidies and a lower entry price compared to private condominiums.

[00:06:48]Still, buyers should remain cautious about overstretching financially in property. Entering at the wrong point in the property cycle is the worst thing that can happen.

[00:06:57]No matter how you try to remedy it, you can only wait for the next up cycle.

[00:07:04]To sum it up, the above are the five risks facing the property market in the foreseeable future.

[00:07:09]I'm very sure not many people will want to talk about them.

[00:07:12]But I felt it is my responsibility to share with fellow Singaporeans the risks and deal in the current market.

[00:07:19]Here, don't get me wrong. There are still good deals around, but always adopt financial prudently and have a long-term horizon in the property market.

[00:07:27]By the way, if you have any housing plans, I'll be more than happy to assist you.

[00:07:32]That's all. Thank you for watching.