Timing the Singapore Property Market: A Data-Driven Analysis
TLDR Historical data of Singapore’s property market shows seasonal trends: Q1 (January to March) often has price dips, making it...
Read More
TLDR
High property prices in Singapore make it difficult for most to upgrade from HDB flats to private condos, despite periodic calls to relax policies like the Additional Buyer’s Stamp Duty (ABSD) for upgraders. The ABSD controls demand and helps prevent runaway price increases by discouraging rushed upgrades and encouraging realistic resale pricing. Executive Condominiums (ECs) are an exception, as they don’t require upfront ABSD for existing HDB owners. Homeowners benefiting from SERS (Selective En bloc Redevelopment Scheme) can upgrade easily due to windfall gains, but this impacts only a small minority. Whether you should buy, sell, or wait depends on your personal situation—there’s no one-size-fits-all answer. Strategic planning and market knowledge are essential for navigating Singapore’s real estate landscape.
At what moment has the typical Singaporean claimed, “The high costs aren’t an issue when it comes to purchasing a condominium?”
It’s surprising that a property agency needs a survey to discover that high home prices make upgrading difficult and that people prefer HDB flats. This isn’t a new insight.
Every year, media stories emerge about real estate players pushing to relax certain policies. This year’s focus is on adjusting the Additional Buyer’s Stamp Duty (ABSD) for upgraders. Currently, if you buy a new property first, you pay the ABSD upfront, but can apply for a refund if you sell your old home within six months. This rule doesn’t apply to Executive Condominiums (ECs), where you can buy first without paying ABSD.
But should we change the ABSD just to assist upgraders?
The ABSD acts as a control on demand. Without it, show flats could be more crowded, with more buyers rushing to secure early discounts. The ABSD also influences resale flat prices—if homeowners must sell quickly to avoid losing the ABSD, they are likely to price their flats realistically. This differs from a scenario where they can buy a new condo first and take their time seeking the best price for their current flat.
Additionally, if buying first isn’t an option, fewer people might decide to upgrade due to the hassle of temporary housing and storage when selling before buying. The ABSD can lead some homeowners to delay upgrading altogether.
Ultimately, if fewer homeowners rush to upgrade, it puts less upward pressure on prices.
Do you know who will have no trouble upgrading, though?
Someone whose flat is chosen for SERS. One clever homeowner we met at Stacked gained from SERS at Tanglin Halt. They received a new unit in 2021 at Dawson, near SkyOasis @ Dawson, which recently had a record sale of a $1.73 million flat.
If that seller upgraded, I hope they’re enjoying their $3 million condo; they can likely afford it.
This makes me wonder: now that the government has somewhat addressed the windfall effect of mature estate housing with the Prime model, will there be something similar to SERS? Only about four or five per cent of flats benefit from SERS currently – but the impact has been quite uneven for some.
I don’t think fairness is an issue; to me, benefiting from SERS isn’t any more unfair than winning 4D. However, I’ve noticed that Singaporean homeowners care a lot about fairness, and more stories about expensive SERS replacement flats will likely lead to complaints.
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 …
Budget 2024: What To Expect For The Singapore Residential Market?
TLDR In 2025, owner-occupiers of residential properties can benefit from property tax relief based on the Annual Value Band. Retirees...
Read More
Top 5 : Is Investing In Properties Worth In Singapore?
Investing in properties has long been considered a reliable and profitable venture, and Singapore, with its robust real estate market,...
Read More
Top 5 Tips: Gain an Edge in the Singapore Property Market: Steps to Boost Your Investment Returns
The Singapore property market has always been a hotbed for investors looking to make substantial returns on their investments. As...
Read More
Top 5 Places to Buy Local Art in Singapore
Singapore, a melting pot of cultures and traditions, is not only known for its breathtaking cityscape, delectable food, and shopping...
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
6 Unexpected Property Warning Signs That Can Be Negative for Some, But Beneficial for Others
TLDR When considering property preferences, what may appear as a disadvantage to some buyers could be a unique opportunity for...
Read More
Navigating Property Purchases in Singapore: Why Going Without an Agent Can Be Risky
TLDR Many homebuyers hesitate to engage their own real estate agent due to misconceptions about costs and conflicts of interest....
Read More
6 Must-Know Factors to Consider When Purchasing a Resale HDB in 2023
TLDR When buying a resale flat in Singapore, make sure to walk around the neighborhood to assess actual distances, check...
Read More
Top 5 Factors : Location More Important Than Freehold Status?
When it comes to purchasing a property, there are numerous factors that potential buyers need to consider. While the debate...
Read More
Top 5 Reasons : Why Ultra-Rich Families Racing To Park Wealth In Singapore
Singapore, a small island nation in Southeast Asia, has become a magnet for the world's ultra-rich families seeking to park...
Read More
Top 5 Cafes in Singapore for Brunch
Singapore, a melting pot of cultures and flavors, offers an incredible array of culinary experiences to tantalize your taste buds....
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
Top 5 : Reasons why Freehold Properties Cost More in Singapore
Freehold properties, a term often heard in the real estate market, are properties that are "free from hold" of any...
Read More
Is Lifelong Renting a Viable Option in Singapore?
TLDR In Singapore, while the majority aspire to own homes, a small segment opts for lifelong renting, driven by personal...
Read More
CPF Accrued Interest On Housing: Learn What It Is and How to Calculate It
TLDR Understanding the CPF accrued interest on housing loans is crucial for Singaporean homeowners. When using CPF funds to finance...
Read More
Beyond Tenure: Why These Buyers Chose Older Leasehold Condos in Singapore
TLDR Older leasehold condos in Singapore may face skepticism but offer key benefits such as affordability, location, and flexibility. Three...
Read More
Top 5 Romantic Date Spots in Singapore
Singapore, known for its stunning skyline and diverse culture, is a melting pot of romantic opportunities just waiting to be...
Read More
Singapore Property Investing: Is It Better To Flip Or Hold?
Investing in Singapore property can be a profitable venture, but investors must choose the right strategy to maximize their returns....
Read More
Top 5 Hawker Centres in Singapore for Local Food
Singapore, a melting pot of diverse cultures and rich culinary heritage, is home to some of the most delectable local...
Read More
