ANALYSIS: Unveiling the HDB Towns with the Steepest and Lowest Price Surges!
TLDR The real estate market for HDB flats in Singapore has witnessed significant growth, with prices reaching new highs. The...
Read More
TLDR
Undervalued properties are harder to find in Singapore due to market transparency, but deals still exist. Target areas with new or recent launches—resale condos nearby may be underpriced before prices adjust. Watch for small price gaps between premium and standard units, and look out for bargains at property auctions or from foreign sellers needing quick sales in prime districts. Boutique developments and the “worst house in the best neighbourhood” approach can also present opportunities but come with risks like uncertain resale value. Always base your decision on your personal situation and seek data-driven advice.
Finding undervalued properties is now more challenging. In the past, the market was less transparent and relied on word-of-mouth or classifieds. Today, the internet lets everyone easily compare prices. However, some sellers still list properties below market value, and acting quickly can help you find these deals. Here are some useful tips to begin your search:
1. The more recent the launch, the larger the price difference.
New launch condos usually cost more than resale ones. If you find an area with new launches coming up or a recently sold site, it could be a good opportunity.
Buying a resale condo in that area might be cheaper than the new launch. Over time, the new launch will likely raise resale prices nearby. By purchasing early, you benefit from lower prices before they increase.
It’s best to look for upcoming launches, but you can also consider areas where new projects have just finished. There will be a short time when resale prices haven’t yet adjusted to the new developments.
Additionally, check if the new project improves the area. Sometimes, developments add valuable amenities that can boost existing resale prices. For instance, The Poiz Residences improved local retail options, and Seneca Residences added essential commercial facilities to Tanah Merah Kechil Link.
2. Premium pricing might not be significantly different from standard pricing.
Developers may charge more for a unit if it has benefits like a better view or easier access to amenities. However, the extra cost is not always justified.
Deciding on this requires experience. For example, does a greenery view justify a $50,000 price difference? Is a $75,000 increase worth it for a private lift instead of a regular one? There’s no clear answer, and each case needs to be evaluated individually. You can contact us on Stacked for comparisons.
Generally, if the premium is too low compared to the unit’s advantages, it’s likely an undervalued unit.
A smaller premium can also result from temporary developer promotions, such as selling units on different floors at the same price. These limited-time offers can be a chance to save money if you time it right.
3. Securing advantageous deals at property auctions.
Some sellers choose to auction their property instead of selling it normally. This doesn’t mean they are desperate; buyers may prefer auctions for various reasons, like a lack of recent sales in the area or trying to sell unique units like penthouses.
If it’s a mortgagee sale, the auction agency will usually make that clear. You have a better chance of finding a bargain at these sales compared to others.
Don’t be surprised if the unit doesn’t sell at the auction but later through private negotiations. This often happens. Watch the auction to see what others are willing to pay, and then consider making a private offer if it doesn’t sell.
4. Be vigilant regarding foreign sellers in key locations.
Finding properties may be harder in 2024, as foreign owners are holding onto their properties more tightly. If they sell, they face a 60 per cent Additional Buyer’s Stamp Duty (ABSD) on any new property.
However, foreign sellers in prime locations sometimes sell their properties below market value if they need to move back quickly. The largest losses often happen in areas with many foreign owners, like Sentosa or Districts 9 and 10.
Generally, foreigners in a hurry may prioritise speed over price. If they can complete a sale quickly, they might choose that over waiting for better offers.
On the downside, foreign ownership is less common in more affordable mass-market condos, making these opportunities rare.
5. Boutique properties and low transaction volumes result in price fluctuations, which in turn create opportunities.
Some properties, like walk-up apartments or small boutique buildings with under 50 units, have few sales. There might be just one or two sales every few years, so if the last sale is unusually low, it can lower the average price. This might affect the property’s value, making it seem cheaper than anticipated.
However, this situation has a downside too. When you decide to sell, the resale profits can become much less certain due to the low number of transactions.
6. Apply the principle of the “worst house in the best neighbourhood.”
This approach highlights the importance of location over the current value of a specific property. For example, purchasing an older condo near Bayshore MRT (like Bayshore Park from 1986) can be a good investment as the new Bayshore Estate develops. Prices for older condos are often lower than newer ones but will likely increase as the area improves.
The main idea is that properties can be upgraded through renovations, but locations cannot be changed. To find undervalued properties, focus on the best locations and then buy and renovate the cheapest properties there.
However, don’t oversimplify this idea: you still need to think about renovation costs and potential lease decay over time.
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 …
Revival of Singapore Luxury Housing Market in 2023
TLDR The property market in Singapore has witnessed significant shifts in the past two years, with a surge in prices...
Read More
Top 5 Best Alternative Music Venues in Singapore
Singapore, a vibrant and bustling city-state, is known for its diverse culture and thriving arts scene. The city's love for...
Read More
What Hidden Costs Are There When Selling Your House?
TLDR When selling your house, be prepared to cover expenses such as outstanding home loans, legal fees, property agent commissions,...
Read More
5 Impacts Of The Singapore-Malaysia High-Speed Rail On The Property Market
The proposed Singapore-Malaysia High-Speed Rail (HSR) is a joint project between the two countries that aims to improve connectivity and...
Read More
Top 5 Reasons : How Can A Reputable Real Estate Agent Help You When Investing In Singapore Property
Investing in Singapore property can be a lucrative venture, given the country's stable economy, strategic location, and high demand for...
Read More
5 Things to do When You Go For A Property Viewing In Singapore Part 2
5 Things to do When You Go For A Property Viewing In Singapore Part 2 Here are 5 more things...
Read More
Top 5 : Singapore’s Most Desirable Properties: A Look at the City’s Most Coveted Real Estate
Singapore, a bustling city-state known for its impressive skyline and thriving economy, is home to some of the most desirable...
Read More
Top 5 Reasons : Why Do Singaporeans Still Flood The Property Market?
Singapore, a thriving city-state with a robust economy and a strong demand for real estate, has always been an attractive...
Read More
5 Reasons : Can Your Real Estate Investment Hedge Against Inflation?
Inflation is an economic phenomenon that can have a significant impact on an individual's financial well-being. As the cost of...
Read More
Punggol Northshore HDB Flats Reaching MOP: Navigating the Resale Window
TLDR In 2025, around 1,765 HDB flats from Northshore Residences I & II and Northshore StraitsView in Punggol’s Northshore will...
Read More
Top 5 Factors : Singapore Real Estate Investing vs Stocks and Bonds: Which is Better?
Investing is an essential aspect of wealth creation and financial planning. With a plethora of investment options available, it can...
Read More
Top 5 : Greatest Challenges That Investors Face In Singapore’s Real Estate Market
Singapore's real estate market is a dynamic and attractive investment landscape for both local and international investors. Known for its...
Read More
Discover How The CPF Accrued Interest Can Impact Your Property Sale Proceeds
Singaporeans are renowned for being smart and savvy - especially when it comes to selling their homes, whether it's an...
Read More
Can Your HDB Flat Safeguard Your Retirement?
TLDR The HDB market has seen significant changes over the years, with many young owners looking to upgrade to private...
Read More
Beyond Marina Bay Sands: Uncovering Singapore’s 5 Little-Known Secrets
Beyond Marina Bay Sands: Uncovering Singapore's 5 Little-Known Secrets Singapore is a small country with a rich history and culture....
Read More
5 Things to Know About Singapore’s Urban Redevelopment and Landscape Changes
As one of the world's most densely populated cities, Singapore has undergone significant urban redevelopment over the past few decades...
Read More
Why Selling Your Own HDB Flat May Be More Challenging Than You Anticipate: 7 Hidden Challenges to Prepare For
TLDR Selling your flat can be a daunting task, not because of the paperwork but due to challenges in marketing...
Read More
Top 5 : Long-Term Economic Impacts Of Foreign Real Estate Investment In Singapore’s Luxury Condo Market?
Singapore has long been a preferred destination for foreign real estate investors, particularly in the luxury condo market. The city-state's...
Read More
5 Singapore Property Trends to Watch in 2023: Expert Weigh In
5 Singapore Property Trends to Watch in 2023: Expert Weigh In Top 5 Singapore Property Trends to Watch in 2023...
Read More
