Are Waterfront Condos in Singapore a Good Long-Term Investment?

Waterfront living offers lifestyle perks and potential capital gains. Explore the factors that make waterfront condos desirable and whether they hold their value as long-term investments in Singapore’s property market.

lakesdie2

Jul 4, 2025 - 09:53

Are Waterfront Condos in Singapore a Good Long-Term Investment?

Waterfront living has always carried a certain prestige. The idea of waking up to unblocked sea views or enjoying sunset walks along the water’s edge appeals to many homebuyers. But beyond lifestyle, are waterfront condos in Singapore truly a good long-term investment?

As property prices continue to evolve and new waterfront projects emerge, it’s worth taking a closer look at whether these homes deliver both emotional and financial returns.

1. Limited Supply Means Higher Long-Term Value

In land-scarce Singapore, waterfront plots are inherently limited. The government carefully controls development along key coastal areas like Marina Bay, East Coast, and Sentosa. This scarcity supports the long-term desirability of such properties.

Unlike inland condos, waterfront homes offer a unique selling point that cannot easily be replicated. As demand for prime and lifestyle properties continues to grow, this exclusivity often helps waterfront units hold their value better during market slowdowns.

2. Strong Appeal Among Affluent Buyers and Expats

Waterfront condos tend to attract a specific buyer profile—affluent locals, high-net-worth individuals, and expatriates seeking a luxurious lifestyle. This sustained demand is especially evident in iconic projects such as Reflections at Keppel Bay or The Sail @ Marina Bay.

For investors, this translates into a more resilient rental market. Tenants who choose waterfront living are often willing to pay a premium for the views and location, helping landlords maintain healthy rental yields.

3. Lifestyle Premium That Enhances Resale Potential

While location has always been king in real estate, lifestyle has become an equally powerful factor. Post-pandemic trends show buyers placing higher value on spacious layouts, natural surroundings, and access to outdoor spaces.

Waterfront condos tick all these boxes. The combination of tranquil views, proximity to parks or marinas, and resort-like facilities makes these homes highly appealing, particularly to those upgrading from smaller urban apartments. When it’s time to sell, these lifestyle features can help your property stand out in a crowded market.

4. Are There Risks?

Of course, waterfront condos aren’t without potential downsides. Prices are typically higher on a per-square-foot basis compared to non-waterfront projects in the same district. This premium can narrow rental yields if entry prices are too steep.

Maintenance costs may also be slightly higher due to exposure to sea air, which can accelerate wear on building exteriors. Finally, cooling measures and ABSD (Additional Buyer’s Stamp Duty) may dampen demand among foreign buyers who traditionally favour these properties.

5. The Future of Waterfront Living in Singapore

Singapore’s Urban Redevelopment Authority (URA) plans continue to emphasise lifestyle-centric developments near water bodies. The Greater Southern Waterfront, for example, promises to create a new wave of high-end waterfront homes, offices, and leisure spaces over the coming decades.

Early investors in these areas could stand to benefit from long-term transformation, much like how Marina Bay properties appreciated significantly after the area was developed into a global financial and lifestyle hub.

Final Thoughts

Waterfront condos in Singapore offer more than just a home—they deliver a lifestyle that appeals to a select segment of buyers and tenants. While they come with a premium, their limited supply, strong appeal, and alignment with future urban planning make them a compelling long-term investment for those with the means to enter this market.

As always, successful investing comes down to careful project selection, timing, and understanding your own financial goals. If you value exclusivity and lifestyle alongside potential capital gains, a waterfront condo could be the perfect fit.