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 …

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,...

Mandarin Top 5

Top 5 : Exploring the Streets of Singapore – A Journey Beyond Just Shopping!

Jayson Ang – February 11, 2025 –

Singapore, a vibrant city-state known for its diverse culture and rich history, offers a plethora of unique experiences that go...

All Blog Posts Buying Tips Opinion

I Decided to Pay the Additional Buyer’s Stamp Duty to Purchase a Condominium While Retaining My HDB: My Reasons

Jayson Ang – October 15, 2024 –

TLDR Despite a 20% Additional Buyer’s Stamp Duty (ABSD) for second properties in Singapore, Yang chose to hold onto his...

All Blog Posts Buying Tips

CPF Accrued Interest On Housing: Learn What It Is and How to Calculate It

Jayson Ang – February 14, 2023 –

TLDR Understanding the CPF accrued interest on housing loans is crucial for Singaporean homeowners. When using CPF funds to finance...

Mandarin Top 5

The Best Time to Invest in Singapore’s Property Market: Timing is Everything

Jayson Ang – April 30, 2024 –

Investing in the property market is a significant decision that requires careful consideration and analysis. One crucial factor that determines...

All Buying Tips Opinion Selling Tips

Navigating the 2025 Singapore Property Market: Why Informed Buyers Can Stay Confident

Jayson Ang – July 9, 2025 –

TLDR Despite global economic uncertainties, Singapore’s property market remains resilient due to robust financial regulations, conservative loan assessments, and effective...

Mandarin Top 5

Top 5 Reasons Why Singapore’s Property Market Is A Haven For High Net Worth Investors

Jayson Ang – September 26, 2024 –

Singapore's property market has long been a magnet for high net worth investors, both local and international. The city-state's strategic...

All Buying Tips

What Role Does Property Valuation Play In The Real Estate Industry, And Why Is It Important?

Jayson Ang – June 22, 2023 –

TLDR When it comes to property valuation, understanding the process is crucial for both buyers and sellers. Property valuations can...

All Buying Tips

5 Reasons Why Your House Isn’t Selling – and How to Overcome Them!

Jayson Ang – June 24, 2023 –

TLDR When trying to sell your home, ensure it is competitively priced based on its unique features and the current...

All Buying Tips Reports

2024 Residential Property Market Outlook

Jayson Ang – December 22, 2023 –

TLDR The market outlook for 2024 suggests continued uncertainties affecting housing demand and risk appetite due to geopolitical tensions, macroeconomic...

All Buying Tips Opinion

5 Techniques for Identifying Undervalued Properties in Singapore 2023

Jayson Ang – August 23, 2023 –

TLDR To spot undervalued properties in Singapore's real estate market, focus on market value, location, and unique features. Consider "up...

All Buying Tips Opinion

Strategic Patience: Why Some Singaporeans Might Benefit From Delaying Home Ownership, Even With Enhanced Grants

Jayson Ang – July 10, 2026 –

TLDR The Fresh Start Housing Scheme in Singapore now offers up to $75,000 in grants for eligible families buying shorter-lease,...

Mandarin Top 5

The Top 5 Features to Look for When Buying a Luxury Property in Singapore – Expert Insights!

Jayson Ang – September 22, 2024 –

Singapore, a thriving financial hub and one of the world's wealthiest nations, has become an attractive destination for luxury property...

All Buying Tips

It Seems Like Less Folks Living In HDB Flats Are Chasing After The Dream Of Owning A Condo

Jayson Ang – March 21, 2024 –

TLDR The Singapore property market is experiencing a decline in condo purchases by HDB flat owners due to multiple property...

All Blog Posts Buying Tips

Quick Guide for Condo Sellers: Timeline to Sell Condo in 2023

Jayson Ang – July 9, 2023 –

TLDR When selling a condominium in Singapore, understanding the critical steps is key. First, ensure you are not liable for...

All Blog Posts Buying Tips

5 Risks Upgraders Should Be Aware of To Avoid Financial Troubles When Progressing Their Property

Jayson Ang – July 3, 2023 –

TLDR The article delves into the intricacies of property asset progression in Singapore's real estate market. It highlights the risks...

Mandarin Top 5

From Overseas to Singapore Property: 5 Steps Guide to Remitting Funds

Jayson Ang – May 21, 2023 –

From Overseas to Singapore Property: 5 Steps Guide to Remitting Funds 1. The first step in remitting money to Singapore...

All Buying Tips Opinion Selling Tips

Market Mistakes in Property Investment: Key Lessons and Strategies for Success

Jayson Ang – July 16, 2024 –

TLDR In property investment, common mistakes include lack of research, overleveraging, and neglecting due diligence. To succeed, conduct thorough market...