Should You Buy An Older Resale HDB Flat If You Are In Your 20s/30s?
TLDR Younger Singaporeans are increasingly drawn to older resale HDB flats due to their larger size and central locations, without...
Read More
TLDR
When diving into Singapore’s property market, expect a rollercoaster ride as trends shift drastically in 2024. Landlords and tenants are leveraging higher occupancy limits, while a shift towards variable rate home loans is predicted for late 2024. Aging mixed-use properties are regaining interest, especially with major revamp projects underway. The Central Core Region faces challenges, with an influx of units potentially impacting prices. Despite a rise in property supply, prices may stabilize due to increased demand for properties near MRT stations. For those contemplating buying or selling, strategic real estate advice can provide clarity and direction tailored to individual needs.
Alright, when it comes to Singapore’s property scene, you can bet your bottom dollar, it’s as exciting and unpredictable as a thriller movie. It doesn’t just sway to the rhythm of sudden cooling measures. Nah, everything from what people want in their floor plans to how rental opportunities shape up can take a wild turn within a year. So, based on the drama we saw unfold in 2023, here’s the scoop on what trends might be stealing the spotlight this brand new year.
Landlords and Tenants Maximizing Higher Occupancy Limits!
The rules just got friendlier for those sharing living spaces. Now, 4-room or larger apartments can house up to eight individuals who aren’t related, an increase from the previous limit of six. The same applies to private properties that are 90 sqm or more.
Will we see a rise in this trend come 2024?
Both landlords and tenants stand to gain from this development. Property owners can potentially boost their earnings by accommodating two additional tenants, while some renters might find it easier on their pockets if they shared the rent with another roomie.
However, keep in mind that the rental market isn’t as robust as it used to be – a fact we’ve been observing since Q2 and Q3 of 2023. With the surge in housing supply and conclusion of new construction projects, rental rates could continue to slump. Thus, we anticipate that tenants will wield more negotiation power as we step into 2024.
Breaking Away from Traditional Mortgages: The Rise of Variable Rate Home Loans in Late 2024
The Fed went full throttle on hiking interest rates after the COVID-19 chaos, which drove up home loan interest rates in Singapore. This has been the trend since 2022, and you can check out our comprehensive breakdown of the situation right here.
However, with inflation in the US taking a nosedive and the economic future looking pretty bleak, the Fed decided to pull a U-turn. Now, we’re potentially staring at three to six rate cuts between 2024 and 2025. This is expected to gradually dial back the home loan interest rates in Singapore too.
Given this scenario, borrowers might need to reassess their stance on fixed-rate home loans, especially as we approach the second half of 2024. Remember, rate cuts usually don’t happen overnight, so don’t expect immediate effects.
While lower home loans are a sweet deal for buyers, we reckon it’s not enough to make investors shrug off ABSD rates and dive back into the market just yet. However, it should bring some comfort to existing landlords who might be grappling with declining rental rates.
Reviving Interest in Aging Mixed-Use Properties
Two major revamp projects are on the radar this year, and they’re definitely worth keeping an eye on:
First off, we’ve got the Golden Mile Complex facelift. When we first dug into this story, developers seemed a bit nonchalant about it – almost as if they were brushing it off. There were even murmurs that the project might be too mammoth to remodel and flip within the five-year timeframe.
But guess what? Far East Organization, Sino Land, and Perennial Holdings have taken the plunge and bagged it for a cool $700 million. How they fare in this venture is going to be under the microscope, for other developers to learn from.
Next up, we’ve got the transformation of the former Peace Centre/Peace Mansion. This place was once dismissed as an eyesore, despite sitting on prime real estate. Similar to Golden Mile, the Peace Centre was a mixed-use property in a top-notch location, but it had seen better days and had a bit of a shady rep.
If these makeover projects hit it big, they could stir up interest in other gems like Orchard Towers or Sultan Plaza. These properties are also aging, mixed-use spots with great location potential. Developers might finally be persuaded to scoop them up.
Unveiling Savvy Buyers in the Struggling CCR
As our annual recap revealed, the Central Core Region (CCR) had a bit of a rough ride in 2023. It only managed to muster an average gain of a paltry one per cent, while other areas were enjoying hefty double-digit growth.
This downturn wasn’t exactly a surprise to those keeping a close eye on the market, especially after new regulation measures were rolled out in April ’23. Additional Buyer’s Stamp Duty (ABSD) rates for foreign investors doubled to a whopping 60 per cent, and this group is particularly significant in the CCR landscape.
Unfortunately, things might take a further dip. According to a report by Huttons Asia featured on Edgeprop, 2024 could bring the highest supply of units in the area since 2021, with an estimated 2,968 units hitting the market.
With the recent regulatory measures and the impending increase in supply, it’s likely that the CCR price tag will experience some pressure. However, this could spell good news for certain home buyers who might be hunting for a deal next year. Remember, the redevelopment efforts at Golden Mile and Peace Centre are also happening in this region.
Stabilizing Prices Amid Supply Shortage: A Path to Recovery
In the annual round-up, we noted a dip in transaction volumes and a steady rise in average private home prices, settling at about a 6.7% upturn for the whole of 2023. Despite being an increase, this figure is down from the previous 8.6%, hinting at a noticeable cooling-off in the market.
Various real estate companies are forecasting between 8,000 to over 11,000 fresh units for 2024, with approximately 38 launches already estimated. This represents a substantial leap from the circa 7,500 units of 2023. Given this uptick, the pinch of the housing supply appears to be easing, which may put a leash on further price escalation.
At this juncture, it remains uncertain if prices will experience a drop – developers are under immense pressure and sellers possess strong capital. Yet, it’s safe to say that the frenzied rate we witnessed post-COVID-19 won’t be making a comeback.
Broadly speaking, prices remain elevated, putting HDB upgraders under pressure – the standard new three-bedroom launch is still hovering around the $2 million mark, a figure far beyond the comfortable budget for many. We anticipate their focus to remain on larger, older resale properties suitable for families, or more affordable OCR projects.
High Demand for Properties Close to MRT Stations
Soaring COE rates hit an all-time high last year, and with the GST rates and living costs on an upward trajectory, owning a car has become a distant dream for many Singaporeans.
This could potentially be the reason behind the surge in demand for condos like J’den and Reserve Residences (refer here for the best-selling projects of 2023). The unique selling point for these projects is the direct connectivity to MRT stations. Despite launching close to the implementation of cooling measures, they managed to attract significant interest.
Shifting our focus to HDB, it’s interesting to note that the new Plus model flats, Bayshore being the inaugural one, are strategically located near the MRT stations of their respective neighbourhoods. If these flats continue to attract strong demand, despite their 10-year MOP and eligibility conditions, it may indicate a growing preference for a life sans cars.
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 …
The Hidden Worth of Singapore’s Far-Flung HDBs
TLDR Location is important in Singapore’s property market, but “ulu” (remote) HDB flats in areas like Woodlands, Choa Chu Kang,...
Read More
The Illusion of Waiting: Why Cooling Measures Might Not Guarantee Cheaper Properties in Singapore
TLDR Cooling measures in Singapore’s property market don’t guarantee cheaper homes. While they aim to slow price growth, history shows...
Read More
What Is Cash Over Valuation in HDB (COV)
TLDR Cash Over Valuation (COV) in HDB resale flats occurs when the purchase price exceeds HDB's valuation. COV cannot be...
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 Overlooked Features that Buyers are Looking for in Singapore Property
The top 5 overlooked features that buyers are looking for in the Singapore real estate market. These are the overlooked...
Read More
5 Cons Of Buying A Resale Property
Luxury properties in Districts 9 and 10 of Singapore are highly coveted, and for good reason. From stunning views and...
Read More
Why Some New Condo Releases Outperform Others
TLDR When it comes to the real estate market, familiarity plays a crucial role in the success of larger condo...
Read More
The Shifting Landscape: Why More Singaporeans Are Opting for Larger HDB Flats Over Condos for Upgrades in 2025
TLDR By 2025, more Singaporeans are choosing larger HDB flats over condominiums as their upgrade path. Rising condo prices, especially...
Read More
Beyond the Premium: Why Some Singaporean Homebuyers Steer Clear of Top-Floor Properties
TLDR Top-floor condominium units in Singapore often come at a premium price and are associated with luxury, but they have...
Read More
Top 5 Bookstores in Singapore for Book Lovers
Singapore, a bustling cosmopolitan city, is known for its rich cultural heritage, diverse population, and of course, its love for...
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
3 Trends For New Launch Properties In 2023
TLDR When considering buying or selling a property in Singapore, it's crucial to understand the market dynamics and key metrics....
Read More
Top 5 Differences Between OCR, RCR And CCR In Terms Of Lifestyle And Culture
Singapore, a vibrant and diverse city-state, is known for its unique blend of cultures, modern architecture, and thriving economy. The...
Read More
Should You Purchase a Small Landed Home or a Larger Condo? Insights from Singaporeans
TLDR When deciding between a compact landed house and a spacious condominium, consider key factors like security, parking, maintenance costs,...
Read More
Quick Guide for Condo Sellers: Timeline to Sell Condo in 2023
TLDR When selling a condominium in Singapore, understanding the critical steps is key. First, ensure you are not liable for...
Read More
When to Strike Gold: The Ultimate Guide to Selling Your House in Singapore!
TLDR When deciding the best time to sell your property, consider various factors such as market trends, financial goals, and...
Read More
5 Top Primary Schools in Singapore Popular with Expat Chinese Community
5 Top Primary Schools in Singapore Popular with Expat Chinese Community When it comes to education, Singapore is a top...
Read More
Tips for Young Adults to Begin Saving for Their Future Home
TLDR When aiming to purchase a home, it is crucial to gain knowledge about the buying process and track your...
Read More
Discover the Best Breakfast in Singapore: Top 5 Must-Try Spots!
Trying out some of the best breakfast places, I've put together a list of the top 5 must-try breakfast spots...
Read More
