Fewer babies, slower boom? The future of Singapore’s real estate market

Synopsis: On Wednesdays, The Straits Times takes a hard look at Singapore’s social issues of the day with newsmakers.

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Singapore is producing fewer babies. Its birth rate, measured by the total fertility rate (TFR), plunged to a record low of 0.87 in 2025, continuing the downtrend of 0.97 in 2023.

The citizen population may start to shrink by the early 2040s. In February 2026, Deputy Prime Minister Gan Kim Yong stressed the need to therefore have a “carefully managed immigration flow to augment our low birth rate”.

As the population shrinks, who would be the buyers in the property market in the future? To delve deeper into this, Lynda Hong hosts Mr Alan Cheong, executive director of consultancy at Savills Singapore.

They also discuss how fewer buyers in the future would push the property market to be rental-based, rather than ownership-driven. They chat too, about the future of the Voluntary Early Redevelopment Scheme (Vers) and how rapid changing technology could change immigration policy.

Highlights (click/tap above):

7:54 How shrinking family sizes have concentrated wealth for young buyers

15:38 The AI threat also applies to immigrant skills

20:09 How Vers could be implemented

24:10 Why Singapore may be leaning towards Generation Rent in the future

25:28 Why youth of the future may not have the same desire to own property later on

27:25 The looming divide between appreciating freeholds and plunging ageing leaseholds

Read ST’s Opinion section: https://str.sg/w7sH

Follow Lynda Hong on LinkedIn: https://str.sg/Gm2v

Host: Lynda Hong (lyndahong@sph.com.sg)

Produced and edited by: Teo Tong Kai

Executive producers: Ernest Luis & Lynda Hong