Key Insights from Singapore Budget 2025 and Property Investment Trends

The 2025 Singapore Budget brings important changes for property investors, particularly with increased tax rates on investment properties that are not used as primary residences and higher taxes on residential properties rented out. These adjustments reflect a shift in government policy, aiming to curb speculation in the property market and to emphasize that residential properties should be used for wealth accumulation rather than short-term investments.

Government Policy Shift: Higher Taxes for Investment Properties

The government’s decision to increase taxes on residential properties that are not used as primary residences or rented out aims to discourage speculation in the real estate market. This move aligns with Abiel’s long-standing philosophy that residential property should be a means of wealth accumulation rather than speculative investment.

The new tax measures signal a need for investors to reassess their strategies, especially given the potential impact on the profitability of holding residential properties purely for investment.

Navigating the New Landscape: Focus on Long-Term Investment Strategies

In light of these changes, property investors are likely to seek more stable, long-term investment opportunities. A growing trend is the increased interest in freehold, landed commercial properties, particularly in Singapore’s market. These assets provide stability, flexibility, and long-term value, even during periods of market uncertainty.

Freehold properties, which are not subject to lease expiration issues, offer more long-term value preservation, making them less vulnerable to market fluctuations. Furthermore, landed commercial properties in Singapore attract interest from both local and international buyers, broadening the investor pool and ensuring long-term value.

Real Estate as a Stable Asset Class

Unlike volatile assets like stocks or bonds, real estate remains a reliable, tangible asset that can offer steady, long-term returns. Abiel focuses on carefully selecting properties with inherent value and purchasing them below market price to ensure built-in equity and minimize risk during market fluctuations. This disciplined approach avoids chasing speculative trends, focusing instead on assets that provide stable returns year after year.

For Abiel, the goal is consistency rather than volatility. We believe that a steady, reliable return, slightly above average, holds much more value in the long run than the emotional highs and lows that come from chasing short-term gains.

Control Over Market Uncertainty

The success of property investment lies not in predicting where the market is headed, but in investing in assets that allow investors to control risks and adjust as needed. This is why Abiel focuses on freehold, landed commercial properties in Singapore—assets that offer both flexibility and stability, regardless of market conditions.

Abiel’s approach is not about maximizing returns at all costs. While some investors are drawn to the lure of quick, large profits, Abiel remains committed to generating consistent, reliable returns. We prioritize long-term growth and sustainable investments over short-term speculation.

Conclusion: Strategic Adjustments for Long-Term Success

The 2025 Singapore Budget marks a significant shift in the property investment landscape, particularly with increased taxes on residential properties. As the market adapts to these changes, investors must focus on long-term, stable returns. Abiel’s focus on freehold, landed commercial properties remains unchanged, as we continue to prioritise stability and resilience in an evolving market.

With these shifts in government policy, the importance of selecting the right type of property investment is clear. Abiel remains committed to guiding investors through these changes, ensuring that they focus on sustainable growth and consistent returns for the future.