Your search results

Exciting News: Affordable Housing in Singapore by 2024?

Posted by Jayson Ang on May 31, 2024

| 0

TLDR

The real estate market in Singapore is experiencing shifts in housing supply and demand, influenced by factors like mortgage rates and construction trends. Anticipated reductions in mortgage rates may ease financial burdens for potential homeowners, while fluctuations in HDB construction and property launches impact market dynamics. Additionally, the introduction of Plus model housing is expected to drive up resale flat prices in select areas. Private housing supply is gradually easing, with new launches offering fresh units to the market. Despite challenges in price ceilings for mass-market new launches, developers are striving to meet market demands. When considering property transactions, it’s essential to assess individual circumstances and seek expert advice to navigate the evolving real estate landscape effectively.

In the current media landscape, there’s a perceptible trend of messages circulating that suggest a reduction in prices and an increase in supply. This pattern seems to hint towards a major, impending event attempting to placate the public. However, we can confidently say that new homeowners are welcoming any sliver of respite. The period following the Covid outbreak has been particularly challenging for this already under-pressure group.

Will Rising Mortgage Rates Put a Cap on Housing Prices?

In a recent news piece, MND shared that mortgage rates might hover between 3.7 and 4.4 percent, potentially suppressing the surge in property values. This is a perspective we subscribe to, having previously discussed the significant impact seemingly minor hikes in mortgage rates can have.

On another note, it’s worth considering the possibility of Federal Reserve rate reductions in 2024. The US Federal Reserve, known as the Fed, typically reduces interest rates when economic prospects seem bleak. This action subsequently impacts Singapore’s interest rates as well.

The issue is that the Fed’s strategy for 2024 remains somewhat ambiguous. On one hand, there are expectations of rate cuts due to slowing growth. Recently, however, there have been increasing debates regarding the depth of these rate cuts. In any event, there exists a chance that mortgage rates may decline over the next year, potentially easing the financial burden for potential homeowners.

Speaking candidly, if the powers that be desired to rein in prices, they could simply hike up the base rate used to compute the Total Debt Servicing Ratio (TDSR), currently standing at four per cent. This move would be justifiable, given the noticeable increase in real interest rates.

(The TDSR restricts your home loan repayment amount, along with any other outstanding loans, to a maximum of 55 percent of your monthly income).

Regardless, investors are likely to be the most deterred, given that higher rates eat into profits. Conversely, genuine homeowners usually view home loan interest rates as a necessary burden. Unless they’re prepared to relinquish private property ownership and opt for an HDB flat, provided they qualify for an HDB loan.

The End of the Housing Supply Drought: What’s Next?

It appears the hustle and bustle of HDB construction is beginning to cool off. Take this year as an example, we’ve seen only three HDB launches compared to the usual four. This shift in gears is likely a reaction to a decrease in application rates from first-time buyers.

Interestingly, this reduction in launches was spun as a positive for potential buyers. The Housing Development Board (HDB) suggested that applicants now have a “higher chance of success in finding a flat that meets their budget and needs.” But despite a higher supply of flats per launch, the overall annual number has dipped.

Moreover, most industry observers anticipated a slowdown in HDB construction this year. After all, there was a production surge in 2022 and 2023, with output increasing by 35 per cent over the two-year period. If this trend continued unabated, we could be looking at a flood of HDB supply like we saw in the 1990s. While this scenario might appeal to first-time buyers, the wider market probably prefers to maintain the status quo.

Anticipating Surge in Resale Flat Prices in Select Areas for 2024

Anticipated to launch in 2024, Plus model housing is set to make a splash in the real estate market. Much like the effect observed with Prime flats, resale properties near these Plus and Prime regions could experience an uptick in value, particularly those unburdened by any drawbacks associated with Plus and Prime locations. As one property agent put it, “It’s hard to imagine anyone looking at a Prime or Plus apartment from their own window and not considering a price hike.”

Looking back to 2022, some property sellers were subjected to a 15-month waiting period, and the conclusion of this hiatus may trigger a rise in prices in sought-after areas like Queenstown, Bishan, and Tanjong Pagar. The reason being, sellers of private properties often find themselves in a financially comfortable position and can afford to demand higher Cash Over Valuation (COV) for the most coveted HDB locales.

A quick note on the 15-month waiting period – it was initially implemented on 30th September 2022 and required private property sellers to wait 15 months before purchasing a resale flat.

In terms of private housing, we’re witnessing the easing of the supply bottleneck. The year ahead promises about 38 new launches, introducing over 11,600 fresh units into the market. Furthermore, the recent completion of sizeable projects, such as Treasure at Tampines (boasting over 2,200 units and holding the title of Singapore’s largest condo development), could potentially ease the rental market.

However, predicting a significant decrease in private home prices might be a stretch. Developers are caught in a tight spot with margins, and breaking through the current price ceiling of approximately $2,100+ psf for mass-market new launches could prove challenging.

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

What Type of Properties Can a Permanent Resident PR Buy in Singapore?

Jayson Ang – August 13, 2023 –

TLDR When it comes to purchasing property in Singapore as a Permanent Resident or Foreign National, there are specific restrictions...

All Blog Posts Buying Tips Opinion Reports

What Difference in One Year After the ABSD Hike in April 2023?

Jayson Ang – December 7, 2024 –

TLDR The recent hike in ABSD rates, especially the increase from 30% to 60% for foreign buyers, has dramatically affected...

All Buying Tips

5 Reasons To Invest In UK Property In 2024 Instead Of Saving

Jayson Ang – February 8, 2024 –

TLDR Investing in UK property in 2024 offers significant advantages over saving due to the potential for long-term value growth,...

All Buying Tips Opinion

Singapore’s Priciest Districts Are Shifting—4 Key Buyer Trends Driving the Change in 2026

Jayson Ang – April 8, 2026 –

TLDR The Core Central Region (CCR) property market in Singapore is shifting from luxury trophy assets to practical, lifestyle-driven homes....

All Buying Tips Opinion Selling Tips

HDB Owners Have Identified This Reason as the Primary Barrier to Upgrading in 2024. Surprising? Not Really.

Jayson Ang – November 25, 2025 –

TLDR High property prices in Singapore make it difficult for most to upgrade from HDB flats to private condos, despite...

All Buying Tips Opinion

How En-Bloc Sales of Condominiums Turned into a Speculative Exit Strategy in Singapore

Jayson Ang – August 2, 2025 –

TLDR En-bloc sales—where owners collectively sell an entire property for redevelopment—have become a key feature of Singapore’s private property market,...

All Opinion Selling Tips

The Unexpected Choices: Why Some Singaporean Homebuyers Opt for Smaller Condos (Even When They Could Afford More Space)

Jayson Ang – February 2, 2026 –

TLDR In Singapore's property market, buyers often prioritize factors beyond just size. Many choose smaller units within their budget due...

Mandarin Top 5

5 Reasons Why Condos Are The Best Real Estate Investment in Singapore

Jayson Ang – March 25, 2024 –

Investing in a condo in Singapore is a popular choice for both locals and foreigners. Condominiums offer a range of...

All Buying Tips Opinion

Leasehold vs. Freehold Condos in Singapore: A Decade of Data

Jayson Ang – December 14, 2025 –

TLDR In Singapore’s property market (2014-2024), leasehold condos often outperform freehold in short-term holding (around 10 years) due to lower...

Mandarin Top 5

The Secret Strategies of Singapore’s Property Tycoons: Lessons You Can Learn

Jayson Ang – April 26, 2024 –

The Singapore property market has always been a hot topic for both locals and foreign investors. With its stable economy,...

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...

All Buying Tips Opinion

Pitfalls of Owning a Boutique Condo: 5 Insider Insights You’ll Wish You Knew Earlier

Jayson Ang – May 19, 2024 –

TLDR When considering boutique condos, be mindful of potential drawbacks such as dominating families influencing rules, lack of privacy due...

Mandarin Top 5

Top 5 Tourist Attractions in Singapore

Jayson Ang – July 18, 2023 –

Top 5 Tourist Attractions in Singapore Singapore, a vibrant city-state located in Southeast Asia, is known for its diverse culture,...

All Buying Tips Opinion Selling Tips

The Rise of New Launch 2-Bedroom Condos: Why Homebuyers are Prioritizing Them Over Resale Options in 2025

Jayson Ang – May 27, 2026 –

TLDR Two-bedroom condominiums are shifting from primarily rental investments to popular family homes, especially among small families and HDB upgraders,...

All Blog Posts Buying Tips

Subscribe to Jayson Ang’s Singapore Property Newsletter

Jayson Ang – December 27, 2022 –

TLDR Jayson Ang's Singapore Property Newsletter offers valuable insights on real estate investments, market trends, and expert advice. The newsletters...

Mandarin Top 5

Singapore Sights & Sounds: 5 Must-Know Facts From the Little Red Dot

Jayson Ang – March 7, 2025 –

Singapore, affectionately known as the Little Red Dot, is a vibrant city-state in Southeast Asia that boasts a unique blend...

All Reports

Increase in ABSD April 2023

Jayson Ang – April 27, 2023 –

TLDR The impending rise in ABSD (Additional Buyer's Stamp Duty) is expected to suppress investment demand, allowing local homebuyers to...

Mandarin Top 5

5 Tips To Spot Winning Investment Properties In Singapore

Jayson Ang – September 6, 2024 –

Investing in real estate is an exciting and potentially lucrative venture. In Singapore, a thriving property market attracts both local...

All Blog Posts Opinion

Unveiling the Truth: Why Freehold is Not Always the Optimal Choice for Property Investment

Jayson Ang – January 4, 2023 –

TLDR When it comes to investing in real estate in Singapore, traditional beliefs may not always hold true in today's...

All Buying Tips Opinion

New Condo Sales Surge: Decoding Singaporeans’ Enthusiasm Despite “High” Prices

Jayson Ang – January 14, 2026 –

TLDR Recent strong condo sales in Singapore, including Emerald of Katong’s 99% take-up during launch, challenge perceptions of unaffordability. Key...