Your search results

What’s Needed For Singapore To Lift Those Cooling Measures?

Posted by Jayson Ang on February 2, 2024

| 0

TLDR

The blog post discusses the recent relaxation of real estate restrictions in Hong Kong, contrasting with Singapore’s stricter regulations. It explores the impact on foreign investors, cultural influences, and potential shifts in the property market. Additionally, it touches on parking issues in both Singapore and Hong Kong, proposing solutions to promote a car-lite society. Lastly, it mentions considerations for buying or selling real estate in the current market.

Well, isn’t it great to see someone finally relaxing their real estate restrictions!

But alas, it’s not us. Nope, it’s happening over in Hong Kong, where they’ve just cut the additional property taxes for foreigners from a whopping 15% down to a more manageable 7.5%.

Fun fact, folks in Hong Kong call these taxes “spicy measures”. Meanwhile, we coolly refer to them as cooling measures. I’d say we win that round, because if you’re going to shake up your real estate market, wouldn’t you rather do it with a ‘chill’ nickname than one that screams discomfort?

But then again, Hong Kong’s in a different ball game than us. With China working hard to boost confidence in its property market and Hong Kong still dusting itself off from political protests and the Covid-19 impact, pulling in investors seems like a smart move.

This has raised some eyebrows back home in Singapore though. For years, Singapore, Hong Kong, and Australia have been the go-to locations for foreign real estate investment. In recent times, Singapore took the lead, thanks to Hong Kong’s hiccups; plus, Chinese property investors feel a cultural draw to Hong Kong and Singapore. But let’s take a moment to assess our current position:

With a 60 per cent ABSD for foreigners, Singapore now boasts the highest stamp duty rates for non-residents. We’re also bracing ourselves for an increase in compliance issues, especially within banks and real estate firms dealing with foreigners. And we can thank the bad apples who tried to funnel more cash through our real estate market than the GDP of some small countries for that!

Some property agents, and even mortgage brokers, are starting to whisper that we’re “handing over” business to Hong Kong. With a 60% Additional Buyer’s Stamp Duty (ABSD), it’s quite possible we might lose a few foreign investors to other places, including Australia.

But honestly, I don’t think it’s that bad.

Firstly, Singapore has largely stayed out of international conflicts, like those between the US or Australia and China. Most would agree that we hold a beautifully neutral position, except for the occasional grumpy old fella at the local café who gets a bit prejudiced after a few beers. We also have a unique culture that somehow resonates with both the East and West.

We’re comfortable enough to share a glass of wine with Americans and Europeans while still enjoying spicy Sichuan cuisine without breaking into a sweat. I really think this is our ace in the hole for drawing in foreign buyers: it’s not just about the numbers, but our global-minded culture that brings us together where statistics can’t.

Still, it’s going to be intriguing to see if Hong Kong’s easing of restrictions will boost their property market – and what kind of impact that might have. This is especially interesting since rules here in Singapore have only gotten stricter, with very few instances of relaxation (the only one I can recall is some improvement in the Seller’s Stamp Duty).

I can’t help but wonder what would happen if our ABSD rules were ever loosened up a bit.

Hey, Guess What? We Share A Surprising Commonality With Hong Kong – Pesky Car Park Issues!

You’ve likely heard the chatter about how parking lots in Hong Kong can cost more than a house. With limited space for cars, just like here in Singapore, the thought of your parking spot being a 20-minute walk from your home is a real downer, right?

Lately, we’re seeing similar property and parking problems popping up in our little red dot. Remember back in 2019 when LTA allowed developers to design properties with fewer car park slots?

Now, condos in CBD areas or within a stone’s throw of an MRT station can reduce their car park allotments. This means no visitor parking for some spots and a real headache for families with multiple cars. However, it does add a touch of charm to older resale condos.

Take a good look at projects from the ’90s and earlier. You’ll find many with two parking spaces per unit. Space wasn’t such a luxury then!

So, if we’re serious about pushing a car-lite society in Singapore, maybe real estate holds the answer. It could be as effective as the COE system. I reckon the government should take a leap of faith and encourage developers to build condos or HDB blocks with fewer parking spaces. These could be cheaper due to lower construction costs associated with underground or multi-story car parks.

This might lead us down a path similar to Hong Kong and Shanghai, where each unit doesn’t include a car park space. Instead, you’d have to buy your car park slot separately.

But would anyone bite? I’m betting on yes. Imagine getting an extra room, freehold status, or a centrally located unit just by sacrificing a car. Considering how expensive cars are these days, I reckon more and more Singaporeans might be open to this trade-off.

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 Buying Tips

Using CPF Funds to Finance Your HDB Flat or Private Property in Singapore: A Comprehensive Guide

Jayson Ang – May 13, 2024 –

Discover the extent to which your CPF savings can be utilized for the acquisition of a HDB home in Singapore,...

Mandarin Top 5

5 Homeowners Share Their Biggest Regrets Delaying Their Property Purchase in Singapore

Jayson Ang – September 12, 2024 –

In the fast-paced and ever-evolving property market of Singapore, making a timely decision to purchase a property can make all...

All Opinion Selling Tips

Is it Better to Sell Your Newly Launched Condo Before or After Completion? Here’s What the Statistics Indicate

Jayson Ang – March 14, 2025 –

TLDR Determining the best time to sell a newly launched condo involves weighing the benefits of selling before or after...

All Blog Posts Buying Tips

What to Do Before Exercising Option to Purchase?

Jayson Ang – July 19, 2023 –

TLDR Home buyers are advised to thoroughly research property values using online tools, secure an ideal home loan package early...

All Opinion

Is Housing Policy an Unintended Factor in Singapore’s Birth Rate?

Jayson Ang – April 29, 2026 –

TLDR Singapore’s housing policies contribute to its declining birth rate through a complex mix of factors beyond just price. Flat...

Mandarin Top 5

Experience Singapore’s Best: 5 Districts with Unmatched Access to Shopping, Dining, and Entertainment

Jayson Ang – February 23, 2024 –

Here are my top 5 picks for districts in Singapore that offer easy access to some of the best shopping...

Mandarin Top 5

The Future Of Singapore Property Investing: 5 Trends To Watch Out For

Jayson Ang – July 10, 2024 –

The future of Singapore's property market is shaped by several emerging trends that reflect cautious optimism, enviable locations, and sociable...

Mandarin Top 5

Top 5 Tips : Finding the Right Property: Location, Size, and Price in Singapore Real Estate

Jayson Ang – November 5, 2024 –

Singapore, known for its diverse culture, strong economy, and excellent infrastructure, is a popular destination for real estate investments. The...

All Buying Tips Opinion Selling Tips

Timing the Singapore Property Market: A Data-Driven Analysis

Jayson Ang – December 10, 2025 –

TLDR Historical data of Singapore’s property market shows seasonal trends: Q1 (January to March) often has price dips, making it...

Mandarin Top 5

Top 5 Reasons : Why Does Singapore Have Such Extensive Restrictions On Foreigners Purchasing Residential Property?

Jayson Ang – November 9, 2024 –

Singapore, a thriving city-state in Southeast Asia, is known for its stable political climate, strong economy, and strategic location. As...

All Blog Posts Buying Tips

Identifying a Good Investment Property: A Guide

Jayson Ang – July 25, 2023 –

TLDR When it comes to navigating the real estate market in Singapore, understanding key factors can make a significant difference...

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...

All Buying Tips

How to Avoid Forfeiting Your Security Deposit: A Guide to Your Rental Property

Jayson Ang – July 30, 2023 –

TLDR When bidding farewell to your rented property, ensure the safe return of your security deposit by: Regular Aircon Servicing:...

All Opinion

Why Can’t We Have More Housing Options For Singles?

Jayson Ang – April 5, 2024 –

TLDR The blog post discusses the evolving regulations for single individuals to purchase public housing in Singapore. It highlights the...

Mandarin Top 5

Top 5 : Questions Should Investors Be Asking Before Investing In Singapore’s High-End Rental Market

Jayson Ang – February 1, 2025 –

Singapore's high-end rental market has been a hot topic of discussion among investors worldwide. With the city-state's robust economy, excellent...

All Buying Tips Opinion

Fresh Take: Old vs New Condos in District 15 — Which Gives Better Value in 2026?

Jayson Ang – April 6, 2026 –

TLDR District 15 condos show a nuanced split between old and new developments. Freehold projects have driven much of the...

Buying Tips Mandarin Top 5

Singapore Luxury Property: 5 Reasons to Add it to Your Trophy Collection

Jayson Ang – July 4, 2023 –

Singapore Luxury Property: 5 Reasons to Add it to Your Trophy Collection When it comes to luxury property investments, Singapore...

All Opinion Selling Tips

The Surprising Truths of Home Ownership: How Health Challenges Led a Homeowner to Relocate

Jayson Ang – July 29, 2025 –

When thinking about staircases, light switch locations, selling our home, and similar topics, many plan for retirement, assuming these issues...

Mandarin Top 5

Top 5 Factors : What Is Considered “Luxury” In The Singapore Property Market?

Jayson Ang – December 3, 2024 –

The Singapore property market is known for its high-quality residential properties, attracting both local and international buyers. Luxury real estate...

Mandarin Top 5

Top 5 : Benefits of Investing in Newer vs. Older Singapore Property Market Condos for International Buyers

Jayson Ang – January 4, 2025 –

Singapore's property market has always been an attractive investment option for international buyers, thanks to its stable economy, strategic location,...