While the Budget 2025 statement by Prime Minister Lawrence Wong on Feb 18 did not contain many direct real estate measures, its emphasis on improving Singapore’s physical infrastructure in one-north and other fiscal incentives could provide a lift to the real estate market, says JLL.

About $1 billion will be invested into Singapore’s research infrastructure, including the establishment of a new national semiconductor R&D fabrication facility and the refreshment of the biosciences and medtech research infrastructure in the one-north area.

Another $3 billion will be injected into the National Productivity Fund to help it compete in new frontier areas including artificial intelligence (AI) and quantum computing.

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“The rejuvenation of these ageing facilities in one-north should strengthen Singapore’s attractiveness by offering spaces that could meet the modern demands of life sciences companies integrating Industry 4.0 initiatives (e.g. automation) into their R&D processes,” comments Dr Chua Yang Liang, JLL’s head of research and consultancy for Southeast Asia.

The Budget also outlined a number of incentives to attract and manage enterprise growth. These include the introduction of tax incentives for Singapore-based companies and fund managers that choose to list in Singapore and grow their economic activities here; a corporate income tax rebate of 50% in the 2025 year of assessment, capped at $40,000; and a new $1 billion private credit growth fund to provide more financing options for high-growth local enterprise.

The Economic Development Board also plans to launch a Global Founder Programme later this year to encourage global founders to anchor and grow new ventures in Singapore.

Chua believes the initiatives will boost Singapore's enterprise count and facilitate growth for existing businesses. “This should help to support new demand for office and industrial real estate in the medium term,” he continues.

Separately, in the retail market, Chua expects the Budget’s support packages and cost-of-living measures to bolster domestic consumer spending, offsetting the impact of higher retail and F&B costs.

The support packages include $800 in CDC vouchers for Singaporean households and utility rebates of up to $760 for eligible HDB households. Families living in HDB flats will also receive an additional $100 in Climate Vouchers, on top of the $300 given out last year, to spend on energy- and water-efficient appliances. Families living in private properties will get $400 in Climate Vouchers.

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To mark Singapore’s 60th birthday, Singaporeans aged 21 and above this year will receive cash vouchers of up to $800. Each Singaporean adult will receive $600, while seniors aged 60 and above will receive an additional $200.

There will also be a personal income tax rebate of 60% for Singaporeans for the 2025 year of assessment, capped at $200.

The measures should have a positive impact on the retail property sector, despite heightened geopolitical and economic uncertainties, says Chua. “With low unemployment and ongoing tourism recovery, the retail property market in 2025 should remain intact,” he says.

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