Residential properties are unique in that they serve as both homes and investment assets, offering returns through potential capital appreciation. Property investments tend to involve a longer-term horizon than other assets like equities or bonds—often extending across generations for some buyers. However, recent global events, including interest rate cuts, heightened geopolitical tensions, and the election of Donald Trump as the 47th U.S. president, suggest an uptick in market volatility and uncertainty. Given these challenges, how should property seekers in Singapore navigate the market with a long-term investment perspective?
In Singapore, the Government Master Plan and Concept Plan provide a structured guide for understanding future property value trends. As the government develops the Master Plan 2025, they are actively seeking public input and hosting forums to shape the plan’s initiatives. Key areas for transformation include the Jurong Lake District, Jurong Innovation District, Punggol Digital District, and the Greater Southern Waterfront. Among these, the development at the Greater Southern Waterfront and Pasir Panjang stands out as a significant, once-in-a-generation opportunity poised to reshape the local landscape and impact property values.
Factors Driving Transformation and Property Value
1. City Expansion and Economic Anchors
Urban growth in Singapore has historically extended outward, led by new housing developments at the city’s edges. Major corporations play a crucial role in this dynamic; for instance, Google’s establishment of its regional headquarters at Mapletree Business City influenced demand and pricing in Pasir Panjang, transforming it into a desirable location for both professionals and residents. This trend illustrates how economic “queen bees” attract demand, raising property values (See Figure 1).
Figure 1 Price Index for New Apartments and Condominiums in District 5 using median unit price
2. Innovation Hubs Near Universities
Proximity to established universities is another catalyst for growth. With its robust research environment, locations near universities like the National University of Singapore (NUS) such as One-North and Science Park tend to attract startups and innovation-driven companies, further supporting property demand and development. This trend underscores the value of areas that facilitate knowledge-based industries.
3. Greater Southern Waterfront’s Strategic Vision
Spanning from Pasir Panjang to Marina East, the Greater Southern Waterfront initiative is central to Singapore’s development strategy. According to the Urban Redevelopment Authority (URA), the area will be transformed into a gateway, with the first development phase at Pasir Panjang Power District, Keppel Club, and Mount Faber set to unfold over the next decade. Extending the city centre southward allows for revitalising older parts of the Central Business District, supporting economic growth and creating long-term value.
4. Enhanced Connectivity and MRT Expansions
The expanded MRT Circle Line, connecting major MRT lines like the Thomson-East Coast, North-South, East-West, Downtown, and North-East Lines, will enhance accessibility for the Greater Southern Waterfront. This connectivity is a strong factor for property seekers, as efficient transport infrastructure boosts property desirability and value by improving residents’ convenience and reducing commute times.
5. Community Amenities and Green Spaces
The Greater Southern Waterfront area benefits from existing green spaces, including Kent Ridge Park, Hort Park, and nearby park connectors that lead to Henderson Wave and Labrador Park. The government’s commitment to a “Green and Blue” environmental plan for Singapore includes enhancing these spaces and improving walkability, making Pasir Panjang an increasingly attractive location for families and young professionals alike. The area is also home to a range of local dining and leisure options, creating a vibrant and community-centric environment.
Implications for Long-Term Investors
For property seekers focused on generational investment, the Greater Southern Waterfront offers considerable potential for appreciation. However, given that full-scale transformations can take decades, leasehold property investors may face challenges in realizing the full impact due to lease decay. Therefore, freehold properties in these high-growth areas are particularly appealing, as their scarcity and exemption from lease decay make them more resilient for long-term value retention.
According to 2023 transactions, the number of freehold homes sold in the Rest of Central Region is significantly lower than leasehold homes (see Figures 2 and 3). In addition to limited supply, many freehold property owners intend to pass their properties to future generations, making these homes rarely available on the secondary market.
Figure 2 : Transactions of Freehold/999 year Non-Landed Residential Property by Market Segment
Figure 3: Transactions of 99 -year leasehold Non-Landed Residential Property by Market Segment
One noteworthy freehold project, Terra Hill on Yew Siang Road, is a new low-density development within a four-minute walk of Pasir Panjang MRT. For investors aiming to capitalize on the Greater Southern Waterfront transformation, properties like Terra Hill provide a rare opportunity for long-term investment in a location set to benefit from significant governmental investment and infrastructure enhancement.
Conclusion
Singapore’s urban development trajectory, guided by strategic government planning, presents substantial opportunities for residential property investors. With projects like the Greater Southern Waterfront poised to transform the landscape, property seekers who prioritize long-term value can find promising prospects in these areas. Despite global uncertainties, the combination of enhanced connectivity, community amenities, and green initiatives makes these locations particularly resilient and attractive for those with generational investment goals.
Written By Dr Tan Tee Khoon, Country Manager – Singapore, PropertyGuru
