How CPF Adjustments in 2025 May Influence Your Homebuying Decisions in Singapore
TLDR In 2025, significant CPF changes in Singapore impact homebuying decisions, especially for older homeowners. The Special Account (SA) for...
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 …
Ready To Make The Jump From HDB To Condo? This Guide Has All The Answers!
TLDR When upgrading from an HDB flat to a condo, consider factors like location proximity, amenities, and regulations. Decide whether...
Read More
Top 5 Considerations : Uncover the Secrets of Buying Older Properties – What They Won’t Tell You!
Buying an older property can be a dream come true for many homebuyers, as these homes often come with unique...
Read More
Increase in ABSD April 2023
TLDR The impending rise in ABSD (Additional Buyer's Stamp Duty) is expected to suppress investment demand, allowing local homebuyers to...
Read More
5 Reasons Why Districts 9 and 10 are the Next Big Thing in Singapore Real Estate
Singapore is renowned for its thriving real estate market, with many desirable neighborhoods and top-notch properties. However, when it comes...
Read More
Is The Condo Dream Getting Increasingly Harder To Achieve For Singaporeans?
TLDR Condominium prices in Singapore have nearly doubled over the past 15 years, with new launches now averaging around $2,390...
Read More
Top 5 Case Study : The Dark Side of Property Investing in Singapore: Scams, Fraud, and Risks
Singapore's property market has long been considered a lucrative investment sector, attracting investors and speculators looking to profit from the...
Read More
Top 5 Shopping Malls in Singapore for Luxury Shopping
Singapore, a bustling city-state known for its stunning architecture and diverse culture, is also a paradise for luxury shopping enthusiasts....
Read More
Top 5 Boutique Shopping Streets in Singapore
Singapore, a cosmopolitan city-state known for its vibrant culture and diverse shopping scene, offers a unique blend of modern malls...
Read More
5 Tips : How To Invest In Singapore Property Without Losing Sleep Over It
Investing in Singapore's property market can be a lucrative venture, but it's important to approach it with caution and a...
Read More
The Power Imbalance: Why Singaporean Landlords Often Have the Upper Hand
TLDR Singapore’s rental market reveals a clear power imbalance favoring landlords. Limited housing supply, rising demand from expatriates, and high...
Read More
The Truth About Buying An Old Condo: Homeowners Reveal Their Top 5 Regrets
The Truth About Buying An Old Condo: Homeowners Reveal Their Top 5 Regrets Some homeowners may find themselves regretting certain...
Read More
Top 5 : Best Hidden Beaches in Singapore
Singapore, a bustling city-state known for its modern architecture and vibrant culture, is also home to some of the most...
Read More
The 99-to-1 Property Split Strategy: Legality and Risks
TLDR The 99-to-1 property ownership split in Singapore, where one spouse holds 99% and the other 1%, is used to...
Read More
Should I Move to a Private Property?
TLDR When considering an upgrade from HDB to private property in Singapore, it's essential to understand the differences and implications....
Read More
HDB Market Outlook 2023
TLDR: Understanding the HDB Market Outlook 2023 The HDB resale market showed resilience in 2022, with significant growth in sales...
Read More
Top 5 : Benefits of Investing in Newer vs. Older Singapore Property Market Condos for International Buyers
Singapore's property market has always been an attractive investment option for international buyers, thanks to its stable economy, strategic location,...
Read More
5 Tips To Spot Winning Investment Properties In Singapore
Investing in real estate is an exciting and potentially lucrative venture. In Singapore, a thriving property market attracts both local...
Read More
6 Compelling Reasons Why 3-Bedroom Condos Might Shrink Further
TLDR Three-bedroom units in Singapore have significantly downsized from 1,700-1,800 sq. ft. in the 1980s to around 1,000 sq. ft....
Read More
Why Home Staging Is Important In A Competitive Real Estate Market
Singapore's property scene has always been a powerhouse, effortlessly combining the new with the old. It's a real estate playground...
Read More
