Your search results

Is the Singapore Property Market Set for a Dip in 2024?

Posted by Jayson Ang on January 26, 2024

| 0

TLDR

The Singapore property market is experiencing shifts with Morgan Stanley adjusting its outlook on major developers. A forecast predicts a 3% drop in housing prices in 2024 due to various factors. Massive developments completed in 2023 have impacted property prices, averaging between $2,100 to $2,300 per square foot. Challenges include HDB owners hesitating to upgrade and the high cost of new properties. The market sees the return of Deferred Payment Schemes and a decline in foreign investment due to taxes. With an increase in HDB completions and developers’ cautious bids, the supply crunch is easing. The impact of escalating interest rates and previous cooling measures remains uncertain. Government interventions aim to stabilize prices, but the market response is unpredictable. Real estate agents are adapting to market changes, emphasizing strategic advice and effective property presentation strategies for buyers and sellers.

Singapore’s property scene is getting quite some attention from market watchers and estate dealers.

Here’s a curveball: Morgan Stanley has adjusted its stance on two major developers, switching from a positive to a negative outlook.

But what’s really intriguing is their forecast of a 3% drop in housing prices in 2024 due to factors like empty houses and sales performance.

Just think about it:

This year, we’ve seen the completion of big projects like Normanton Park with 1,862 units, Treasure at Tampines with 2,203 units, and Parc Clematis with 1,468 units. All these massive developments wrapped up in the same year!

Prices for new properties average between $2,100 to $2,300 psf, and agents are having a hard time as HDB owners are hesitant to upgrade. Even if you sell your 5-room flat for $700,000, what type of property can you realistically upgrade to? The average cost of a new launch three-bedroom unit is now topping $2.1 million!

We’re also seeing more Deferred Payment Schemes (DPS) making a comeback. This usually signals that developers are struggling to sell off their remaining units and are trying to make their payment options more tempting.

A whopping 60% Additional Buyer’s Stamp Duty (ABSD) for foreign buyers and decreased taxes in competing markets like Hong Kong could lead to a decrease in foreign investment, especially in high-end condos and luxury homes in central region.

In the HDB market, there’s been a surge in completions, with 23,782 finished in 2022 – the highest in half a decade! And even more will be done this year.

Even developers are sensing the shift, becoming more cautious in their bids, despite the last batch of collective sale properties being fully redeveloped since 2017. The recent closing of Pine Grove (Parcel B) with a top bid of $1,223 psf ppr that is lower than the $1,318 UOL had paid for Parcel A is indicative.

The supply crunch seems to be easing up, and the new challenge is the combo of escalating interest rates and the sky-high property prices. Plus, it’s too soon to determine the effect of the April 2023 cooling measures, but we should start seeing results next year.

Hopefully, HDB upgraders will once again be able to afford new condos or at least sizable resale ones.

Fingers crossed, folks upgrading their HDBs might soon be able to snag brand new condos, or at the very least, some spacious pre-loved ones. I’ve noticed that real estate agents are rooting for them, scrambling to find properties to offer up for sale.

(Quick heads up, brace yourselves for an influx of pamphlets and phone calls, claiming your humble home could fund a retirement filled with thrice-weekly servings of bird’s nest soup. So, you know, call them to sell, and all that jazz.)

Either way, we can’t overlook the fact that the Government still has plenty of tricks up its sleeve (all those cool-off rules) – especially if there are hints that property prices might tumble more drastically than we thought.

Remember, snapping up a property when prices are low isn’t worth much if you don’t sell it off at the right moment.

I used to believe that the government could lend a hand by slashing land prices, but wiser souls quickly set me straight.

Why doesn’t the government simply reduce Land Betterment Charges, or let the floor price of Government Land Sales plummet? Wouldn’t that make new properties more affordable?

Sounds reasonable, right? But a chat with a real estate agent and a former executive from a development company quickly dispelled my naïve idea.

Imagine if the government did decide to cut land prices, and a lucky few developers manage to grab the land on the cheap.

The going rate for new properties is roughly $2,100 psf. Now, would these developers lower their prices because they scored cheaper land? Or would they stick to selling at $2,100 psf because that’s what the market dictates?

Considering that developers aren’t running charities and have shareholders to satisfy, they’ll probably opt for the latter. Even if the government did unload land for less, the developers would likely keep their prices steady and pocket the extra profit.

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 …

All Blog Posts Buying Tips Opinion

6 Compelling Reasons Why 3-Bedroom Condos Might Shrink Further

Jayson Ang – November 15, 2024 –

TLDR Three-bedroom units in Singapore have significantly downsized from 1,700-1,800 sq. ft. in the 1980s to around 1,000 sq. ft....

All Buying Tips Opinion Selling Tips

4 Intriguing Property Trends in Singapore for 2024

Jayson Ang – February 10, 2025 –

TLDR The dynamic shifts in Singapore's real estate market following Covid, highlighting three key trends: the surprising resilience of the...

Mandarin Top 5

Top 5 Best Green Spaces to Picnic in Singapore

Jayson Ang – December 25, 2024 –

Singapore, a bustling city-state known for its modern architecture and vibrant culture, is also home to numerous green spaces that...

All Blog Posts Opinion

Singapore Property Price Set to Explode Upwards in 2024?

Jayson Ang – March 10, 2023 –

TLDR Understanding the factors influencing property prices in Singapore for 2024 can help in making informed decisions. Despite high rental...

All Blog Posts Buying Tips Opinion Selling Tips

6 Indicators and Measures to Determine if Your Home Has Unrecognized Profits

Jayson Ang – November 11, 2024 –

TLDR The booming real estate market presents opportunities for homeowners to profit from selling their properties. Two key signs that...

All Blog Posts Opinion

Are We Truly Headed For A Slowdown? How Will This Affect Property Prices?

Jayson Ang – December 9, 2022 –

TLDR The pandemic-induced recession has surprisingly boosted property prices in Singapore, defying conventional economic trends. Factors like cost-push inflation, limited...

Mandarin Top 5

Top 5 Factors : What I Wish I Had Known about Singapore Property Market

Jayson Ang – November 13, 2024 –

Singapore's property market has always been an attractive investment option for both local and foreign investors. With its stable economy,...

All Blog Posts Buying Tips

Unveiling the Secrets: How Foreigners Can Buy Property in Singapore – 6 Essential Steps to Follow

Jayson Ang – December 19, 2024 –

TLDR Foreign investors find Singapore attractive due to its stable governance and transparent business practices. Foreigners, including Permanent Residents (PRs),...

Mandarin Top 5

Top 5 Must-Do Experiences in Singapore for First Timers

Jayson Ang – January 18, 2025 –

Singapore, a vibrant city-state known for its diverse culture and rich history, offers an array of unique experiences for first-time...

Mandarin Top 5

Top 5 Tips : Spot These Warning Signs Before Making a Home Purchase!

Jayson Ang – November 23, 2024 –

Purchasing a home is one of the most significant financial decisions you will make in your lifetime. It's essential to...

Mandarin Top 5

Top 5 Trends And Developments That Will Shape Singapore’s Property Market In The Next 5 Years

Jayson Ang – April 24, 2025 –

Singapore's property market has always been a dynamic and evolving landscape, attracting both local and international investors. As we look...

All Buying Tips Opinion

What Is The Best Location To Purchase A House To Ensure Your Child Has The Highest Probability Of Attending A Well-Renowned Primary School?

Jayson Ang – October 25, 2023 –

TLDR Parents often seek homes within 1km of desired primary schools to increase enrollment chances. Consider oversubscription rates and population...

Mandarin Top 5

Top 5 Differences Between OCR, RCR And CCR In Terms Of Lifestyle And Culture

Jayson Ang – April 15, 2025 –

Singapore, a vibrant and diverse city-state, is known for its unique blend of cultures, modern architecture, and thriving economy. The...

Mandarin Top 5

5 Tips : Riding the Wave: How to Profit from the Upcoming Boom in Singapore’s Property Market

Jayson Ang – August 5, 2024 –

Singapore's property market has always been a hot topic among investors and homebuyers alike. With million-dollar HDBs being sold and...

Mandarin Top 5

Top 5 Tea Rooms in Singapore for High Tea

Jayson Ang – July 16, 2024 –

Singapore, a melting pot of diverse cultures and culinary delights, offers an exquisite high tea experience that caters to both...

All Opinion

Should We Reconsider the ABSD Rates?

Jayson Ang – January 5, 2025 –

TLDR We explore the need to reevaluate the current Additional Buyer's Stamp Duty (ABSD) rates in Singapore, considering their impact...

Mandarin Top 5

Discover Singapore: 5 Must-See Attractions for a Culture Lovers’ Paradise

Jayson Ang – April 18, 2025 –

Singapore, a bustling metropolis in Southeast Asia, is a melting pot of cultures and traditions that offers a unique blend...

All Buying Tips

Integrated Developments: Do They Live Up to the Hype? Check Out These Five Factors

Jayson Ang – March 3, 2024 –

TLDR Integrated developments in Singapore offer a one-stop solution for residents by combining residential, commercial, and transport elements in one...