Why It’s Not Financially Sensible to Pay Off Your HDB Flat Home Loan in Advance
TLDR When deciding whether to repay your HDB flat loan early, consider the limitations of not being able to obtain...
Read More
TLDR
The property market in Singapore has witnessed significant shifts in the past two years, with a surge in prices in the Outside Central Region (OCR) and Rest of Central Region (RCR) compared to the Core Central Region (CCR). Singaporeans lead the luxury real estate market, followed closely by Chinese buyers. The pandemic led to a decrease in foreign buyers from China, but as global economies reopen, a resurgence is expected. Despite challenges, the CCR market shows potential with growing interest from high-net-worth individuals. New launches have made CCR properties more accessible, narrowing the price gap with RCR. Local buyers can seize opportunities in the current market before potential price increases by foreign buyers. The impending rise in Additional Buyer’s Stamp Duty (ABSD) could impact investment demand, favoring local homebuyers. For personalized real estate advice and assistance in buying or selling, a strategic and data-driven approach can provide clarity and direction for your property journey.
Discover the Property Price Trends Across 3 Different Market Segments
The past two years have seen an incredible surge in the prices of private residential properties due to the various socio-economic repercussions of the Covid-19 pandemic, such as delayed construction and limited supply. This has resulted in a flurry of activity for new residential property launches, with some even shattering records with their prices.
The biggest transformation in the 3 real estate segments came from outside the heart of Singapore’s Core Central Region (CCR). Prices of non-landed private properties in the Outside Central Region (OCR) and Rest of Central Region (RCR) skyrocketed by 19% to 27% over the last two years, whereas non-landed property prices in the CCR rose steadily at a rate of 9%.
The sluggish rate of property appreciation in the CCR region can be linked to the decreased demand from overseas purchasers during the pandemic, combined with the December 2021 cooling measures, which raised the Additional Buyer’s Stamp Duty for foreign house hunters by no less than 10 percentage points.
Nationalities Of Prime Property Buyers
Singaporeans lead the pack as the top purchasers of luxurious real estate in Singapore, with Chinese buyers coming in a close second.
From 2017 to 2019, Chinese citizens comprised the largest proportion of foreign buyers for prime residential properties in Singapore, with 12.7% of the total new housing units purchased. However, during the pandemic from 2020 to 2022, this figure plummeted to a mere 5.8%.
As global economies begin to reopen in 2023, an influx of foreign property buyers from countries such as China could significantly drive up the demand for high-end properties in the CCR and potentially return it to pre-pandemic levels.
The proportion of CCR homes bought by foreign nationals had dropped during the pandemic, leaving much room for growth in this sector.
Proportion of CCR Primary Sales Buyers' Nationality
Unlock The Untapped Potential Of The CCR Market
From 2017 to 2019, prior to the outbreak of the pandemic, roughly 20-33% of primary CCR homes were purchased by non-permanent resident foreigners. In the three pandemic-ridden years, however, the number of primary market property sales dwindled to a mere 10-14.5%.
The growing economic instability around the world has attracted a large number of high-net-worth foreigners to Singapore, who are setting up family offices here and bringing their funds with them. Despite the higher Additional Buyer’s Stamp Duty imposed on foreign property buyers, Singapore still appeals to them as a safe haven and as a real estate asset for wealth storage.
As China’s borders open up, more Chinese expatriates are flocking to Singapore in search of work, life and investment opportunities – driving a surge in wealthy investors house-hunting in the CCR. As a result, the CCR property market is seeing a renewed interest.
Undiscovered Gems In The CCR
Singaporeans often overlook private properties in the prime market segment due to the notion that new launches in the CCR market are too costly. Yet, the last two years have seen an exponential rise in condominium prices in the OCR and RCR, which has been narrowing the price gap between private properties in the RCR and CCR.
The new launches in 2022 have made CCR properties increasingly accessible to local homebuyers, with median prices of housing units starting as low as $2,402 per square foot. What’s more, the majority of these CCR projects are freehold properties – a great incentive for those looking to invest in the area!
With the booming growth of property prices in the RCR, the median prices of new launches there are now comparable to those in the CCR. Therefore, savvy local buyers can snap up luxurious freehold developments in prime districts at an affordable cost – but they must be quick before foreigners arrive and push prices up!
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
Top 5 Dessert Places in Singapore
Singapore, a melting pot of cultures and culinary delights, is known for its mouth-watering food scene. From hawker centers to...
Read More
Top 5 Places to Learn About Singapore’s History
Singapore, a thriving metropolis with a rich history and diverse cultural heritage, offers numerous opportunities for visitors and locals alike...
Read More
3 Things You Need to Know if You Are Buying a Second Property
TLDR When considering buying a second property in Singapore, ensure eligibility by meeting the Minimum Occupancy Period (MOP) and understanding...
Read More
Top 5 : Why Ultra-Rich Foreigners Will Still Buy Property In Singapore
Singapore, a small island nation in Southeast Asia, has been steadily gaining recognition as a hotspot for the ultra-wealthy to...
Read More
Top 5 : Regret Buying An Old Condo in Singapore
In the bustling city-state of Singapore, the real estate market is a dynamic and ever-evolving landscape. As of 2023, new...
Read More
Reduced Lease Durations for HDB Flats: What Potential Savings Could Your Property Offer?
TLDR Shorter lease HDB flats are typically about 22–25% cheaper than their 99-year counterparts, based on both resale and BTO...
Read More
5 Reasons Why It’s A Great Time To Buy Property In Singapore In 2024
Singapore's property market is known for its stability, high demand and strong returns. With a growing population, low unemployment rates,...
Read More
Top 5 Factors : Buying Resale vs New Launch Property in Singapore: Which is Better?
The decision to invest in a property in Singapore can be both exciting and daunting, especially when faced with the...
Read More
Investment 101: The Top 5 Best Long-Term Values In Singapore’s Property Market
Investment 101: The Top 5 Best Long-Term Values In Singapore's Property Market When it comes to purchasing property in Singapore,...
Read More
The Top 5 Renovation Tips For Increasing The Value Of Your Singapore Property Investment
When it comes to increasing the value of your Singapore property investment, strategic renovations can make a significant difference. Here...
Read More
Top 5 : Places to See Singapore’s Skyline at Night
Singapore, a bustling metropolis known for its stunning skyline, offers an array of vantage points to witness the city's architectural...
Read More
5 Tips : How To Spot A Good Investment Opportunity In Singapore’s Property Market
Singapore's property market offers a plethora of investment opportunities for both local and foreign investors. To spot a good investment...
Read More
The 5 Secrets To Successful Singapore Property Investing Revealed
The vibrant property market in Singapore has attracted numerous investors and speculators looking to profit from the nation's thriving conditions....
Read More
The Influence of Soaring Land Costs on Singapore’s Real Estate Market: A Look at Land Price Trends Since 1992
TLDR When it comes to understanding the fluctuations in land prices in Singapore, historical patterns reveal significant spikes and dips...
Read More
When Is The Best Time To Buy A New Launch?
TLDR When it comes to new property launches, timing is crucial. Early buyers often secure the best prices due to...
Read More
3 Exciting Residential Sites Coming Soon!
TLDR The Lion City is undergoing rejuvenation with upcoming developments in coveted areas like Clementi and sites near MRT stations....
Read More
Resale Viewing Do’s and Don’ts: Expert Advice from a Singapore Real Estate Agent
TLDR The blog post provides valuable insights for first-time buyers on navigating the resale property market in Singapore. It covers...
Read More
Step-By-Step Guide To Buy Resale HDB (Updated March 2023)
TLDR The process of purchasing a resale HDB flat involves steps such as checking eligibility, calculating affordability, registering intent to...
Read More
Top 5 Reasons : Why Investing in Singapore’s Property Market Is a Smart Move for Millennials – Expert Analysis!
In recent years, Singapore has emerged as a global financial hub and a prime destination for property investments. The city-state's...
Read More
