Singapore, a thriving global city-state, has long been known for its robust economy and attractive real estate market. However, in recent years, developers have become increasingly hesitant to commit to new projects in the country. This reluctance can be attributed to a variety of factors that have made the Singaporean property market less appealing to investors and developers alike.
We will explore the top five reasons why developers are holding back from investing in new projects in Singapore.
1. Cooling measures and tighter regulations:
The Singaporean government has implemented several cooling measures over the past few years to curb excessive exuberance in the property market. These measures include higher stamp duties on property purchases, tightened housing loan limits, and additional acquisition taxes on developers buying land for residential properties. These regulations have made it more challenging for developers to secure financing and acquire land, ultimately discouraging them from committing to new projects.
2. High land prices:
Developers in Singapore have been paying record amounts to buy land in recent years, with CBRE estimating that they have spent S$31 billion acquiring land over the last two years. These high land prices have made it difficult for developers to achieve satisfactory profit margins, especially when coupled with the cooling measures mentioned above.
3. Labour shortage:
Singapore’s construction industry faces a significant labour shortage, primarily due to its heavy reliance on foreign manpower. This shortage has led to increased costs and delays in project completion, making it less attractive for developers to invest in new projects.
4. Market imbalance:
The Singaporean property market has become increasingly unbalanced, with higher-tier cities recording record prices while smaller ones struggle to reduce inventories. This disparity has made it challenging for developers to identify profitable investment opportunities, as demand and prices in smaller cities remain weak.
5. Uncertainty in global economic outlook:
The ongoing uncertainty in the global economic outlook, exacerbated by factors such as trade tensions and the COVID-19 pandemic, has made developers more cautious about committing to new projects. This uncertainty has led to concerns about the sustainability of demand and potential declines in property prices, further discouraging investment in new developments.
In conclusion, the combination of cooling measures, high land prices, labour shortages, market imbalance, and global economic uncertainty has made it increasingly challenging for developers to commit to new projects in Singapore. While the government’s efforts to maintain a stable and sustainable property market are commendable, it is essential to strike a balance between regulation and fostering growth in the industry. Moving forward, it will be crucial for policymakers and industry stakeholders to work together to address these challenges and create an environment that encourages investment and development in Singapore’s property market.
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 …
Jayson Ang – January 29, 2024 – Share
TLDR Newly launched condominium buyers face uncertainties about price changes, proximity to schools, construction methods, maintenance costs, elevator availability, commercial...
Read More
Jayson Ang – March 27, 2023 – Share
TLDR The Urban Redevelopment Authority (URA) Flash Estimates for Q4 2022 show a 0.1% increase in non-landed private home prices...
Read More
Jayson Ang – January 3, 2023 – Share
TLDR Understanding the complexities of upgrading from an HDB flat to a private property in Singapore involves selling your HDB...
Read More
Jayson Ang – March 6, 2025 – Share
TLDR In Singapore, while the majority aspire to own homes, a small segment opts for lifelong renting, driven by personal...
Read More
Jayson Ang – May 31, 2024 – Share
TLDR The real estate market in Singapore is experiencing shifts in housing supply and demand, influenced by factors like mortgage...
Read More
Jayson Ang – March 2, 2024 – Share
Singapore is renowned for its thriving real estate market, with many desirable neighborhoods and top-notch properties. However, when it comes...
Read More
Jayson Ang – May 27, 2024 – Share
TLDR When diving into Singapore's property market, expect a rollercoaster ride as trends shift drastically in 2024. Landlords and tenants...
Read More
Jayson Ang – December 3, 2024 – Share
TLDR Selling a property can be challenging without the right price strategy. Adjust your asking price to attract more buyers...
Read More
Jayson Ang – October 10, 2024 – Share
Should You Buy, Sell or Wait? If you're reading this, you must be trying to figure out the best course...
Read More
Jayson Ang – October 21, 2024 – Share
Singapore, a vibrant and dynamic city-state, offers a diverse range of housing options for prospective homebuyers. From condominiums and HDB...
Read More
Jayson Ang – December 3, 2024 – Share
The Singapore property market is known for its high-quality residential properties, attracting both local and international buyers. Luxury real estate...
Read More
Jayson Ang – November 1, 2024 – Share
The Singapore real estate market has experienced significant growth in recent years, attracting investors from around the world. As the...
Read More
Jayson Ang – April 22, 2024 – Share
Investing in property can be a lucrative venture, but it also comes with its own set of risks and challenges....
Read More
Jayson Ang – June 8, 2024 – Share
Singapore's property market has always been an attractive investment option due to its stability and potential for high returns. While...
Read More
Jayson Ang – April 26, 2024 – Share
TLDR In this blog post, the focus is on the challenges and complexities of en-bloc transactions in Singapore's property market....
Read More
Jayson Ang – January 17, 2025 – Share
TLDR A recent survey by the National University of Singapore (NUS) highlights increasing optimism among real estate industry leaders. The...
Read More
Jayson Ang – September 30, 2024 – Share
TLDR The Singapore property market has experienced fluctuations, impacting private home prices. Understanding your financial capacity is crucial when considering...
Read More
Jayson Ang – March 16, 2023 – Share
TLDR When considering buying a property in Singapore, it's crucial to understand the true costs and risks involved. High monthly...
Read More
Jayson Ang – April 27, 2023 – Share
TLDR The recent surge in Additional Buyer's Stamp Duty (ABSD) rates in Singapore targets mainly foreigners and entities, with rates...
Read More
Jayson Ang – June 22, 2023 – Share
TLDR When it comes to property valuation, understanding the process is crucial for both buyers and sellers. Property valuations can...
Read More
