Top 5 : Best Karting Circuits in Singapore
Singapore, a bustling city-state known for its modern architecture, cleanliness, and vibrant culture, is also home to a thriving karting...
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 …
Beware of These 7 Deceptive Tricks In Showflat Condo Sales
TLDR When navigating the complexities of the real estate market, it's crucial to be wary of hidden marketing tricks when...
Read More
Uncover the Secrets of Buying Older Properties – What They Won’t Tell You!
TLDR When considering the appeal of older properties in hipster neighborhoods in Singapore, it's crucial to understand the benefits and...
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
Singapore’s Real Estate Market: The 5 Most Important Documents to Review Before Buying a Property
Singapore's real estate market is highly regulated and can be complex for those unfamiliar with the process. As a prospective...
Read More
What Type of Properties Can a Permanent Resident PR Buy in Singapore?
TLDR When it comes to purchasing property in Singapore as a Permanent Resident or Foreign National, there are specific restrictions...
Read More
2-Bedroom vs. 2+Study Units: A Decade of Performance Analysis
TLDR Over the past decade, 2+Study units (compact 3-bedroom layouts) consistently outperformed standard 2-bedroom units in resale gains across most...
Read More
The Top 5 Impact Of Singapore’s Ageing Population On The Property Market And Investment Opportunities
Singapore's ageing population is having a significant impact on the property market and investment opportunities. The top five effects include:...
Read More
Top 5 Factors : Why Not All Properties Appreciate Steadily
Real estate has long been considered a lucrative investment option, with the potential for significant returns. However, not all properties...
Read More
Top 5 : Why Ultra-Rich Foreigners Will Still Buy Property In Singapore
Singapore, a small island nation in Southeast Asia, has been steadily gaining recognition as a hotspot for the ultra-wealthy to...
Read More
Finding Your Dream Home In The Near Future. Exciting Upcoming Property Launches In The First Half Of 2024
TLDR The real estate sector in 2023 saw significant policy shifts affecting both private and public housing, with various changes...
Read More
Top 5 Tips : How to Avoid Scams in Singapore’s Property Market – Expert Tips and Warnings!
The property market in Singapore is a thriving and lucrative industry, attracting both local and foreign investors. However, with the...
Read More
5 Factors : Why Singapore’s Property Market Is A Good Hedge Against Inflation
As inflation becomes a growing concern for investors worldwide, the stability of Singapore's property market has become an attractive option...
Read More
Top 5 Tips : How Does One Choose Good Property In Singapore?
Singapore, a thriving city-state known for its impressive skyline and robust economy, has always been an attractive destination for property...
Read More
Selling Your Home for the First Time in Singapore: A Step-by-Step Guide
TLDR Selling your home in Singapore involves careful planning over several stages. Start 4-6 weeks before listing by consulting a...
Read More
Top 5 Reasons : Why Do Singaporeans Still Flood The Property Market?
Singapore's property market has been a hot topic of discussion for many years, with its resilience and growth attracting both...
Read More
8 Untold “Savings” Hacks You Need To Know As Soon As Possible
TLDR Undervalued properties in Singapore are those priced at least 10% below market value, often due to urgent sellers, developer...
Read More
Investing in Singapore Real Estate as a Foreigner
TLDR The blog post discusses the rules and regulations for foreign investors looking to purchase real estate in Singapore. It...
Read More
Reasons Why En-Bloc Sales Are Expected to Remain Slow in 2025
TLDR From 2014 to 2024, the en-bloc market has faced challenges due to fluctuating cooling measures and a shift from...
Read More
Lessons from the Rollercoaster Ride: Homebuyers Share Their Singapore Housing Market Experiences
TLDR The Singapore housing market is a rollercoaster of unpredictable changes. Three homebuyers share their experiences: Tristan waited too long...
Read More
