Your search results

The Illusion of Waiting: Why Cooling Measures Might Not Guarantee Cheaper Properties in Singapore

Posted by Jayson Ang on July 29, 2026

| 0

TLDR

Cooling measures in Singapore’s property market don’t guarantee cheaper homes. While they aim to slow price growth, history shows each market peak rebounds higher, making “wait-and-see” strategies risky. Different measures affect segments unevenly—foreign buyer taxes hit luxury condos, while HDB loan curbs barely touch private markets. Developers face tight margins and limited room to cut prices, meaning new launches often rise despite interventions. Some measures even raise costs permanently, like ABSD. Ultimately, timing the market is perilous; buyers should focus on personal financial readiness, stability, and finding a property that meets their needs rather than waiting for government policies to lower prices.

Property cooling measures often elicit two distinct reactions: some buyers rush to secure a property, fearing increased unaffordability due to loan curbs or higher Additional Buyer’s Stamp Duty (ABSD). Others adopt a “wait-and-see” approach, hoping these measures will depress prices. This analysis addresses the latter group, explaining why lower prices are not always the outcome.

The Flawed Premise of “Wait-and-See”

Cooling measures are inherently designed to exert downward pressure on home prices. Thus, the intuitive response to wait for the market to cool before buying appears logical. However, real-world dynamics are far more complex. While some point to cases like Urban Vista, where buyers in 2013 (a property peak coinciding with the implementation of cooling measures) saw prices decline, this scenario isn’t universally applicable.

Risks of a “Wait-and-See” Strategy:

Prices Can Rebound Higher Than Before: Historical data shows that each property peak in Singapore (e.g., 1996, 2007, 2013) tends to surpass the previous one. A “wait-and-see” strategy becomes a perilous attempt to time the market. Even if prices dip post-cooling measure, identifying the market bottom is notoriously difficult. Buying after a dip, only to see prices fall further (as with Urban Vista from October 2013 to June 2014), can be painful. Conversely, missing the brief window of a downturn can lead to paying even more as the market rapidly ascends to its next peak. The HDB resale market’s trajectory post-Mortgage Servicing Ratio (MSR) in 2013 illustrates this; prices plummeted but then soared past 2013 levels within approximately three years after the pandemic. Attempting to time the market’s bottom is a high-risk proposition.
Varied Effects of Different Cooling Measures: Waiting for unspecified cooling measures is risky because their nature and impact are unpredictable. For instance, the April 2023 cooling measures imposed a substantial 60% ABSD on foreigners. However, this had minimal effect on mass-market condos in areas like Bedok or Jurong East, primarily targeting luxury properties. Similarly, the August 2024 measure, which reduced maximum HDB loan amounts, did not impact condo prices or private bank loan users. A typical Singaporean buyer looking for a mass-market condo would likely regret waiting for these specific measures, as average new launch prices rose from $2,185 psf in January 2023 to $2,475 psf in January 2025, demonstrating that recent cooling measures did not translate into lower prices for the average buyer. Even if a cooling measure exerts downward pressure, it might only slow price increases rather than cause an outright decline, especially in the resale market where financially stable sellers are less pressured to sell.
Limited Downward Flexibility for Developers: Developers have faced increasing pressures in recent years, leading to lukewarm interest in replenishing land banks, even after the last en-bloc craze ended in 2017. Their margins are already thin, and new regulations like GFA harmonization (which prevent charging for non-usable spaces like air-con ledges) further squeeze profitability. Regardless of cooling measures, developers may have very little room to lower prices further, given current land costs.
Cooling Measures Can Increase Your Costs: Some cooling measures, particularly those involving new taxes (like a hypothetical tax on properties above $1 million), would directly increase buyer costs. Since ABSD rates have historically never decreased, such taxes could become permanent. Even non-tax measures, such as tighter loan curbs, could hinder your ability to afford your desired property, leading to regret if you waited.

Prioritizing Personal Readiness Over Market Timing:

It is generally advisable not to attempt to time the market based on cooling measures. The decision to buy should primarily hinge on your personal financial situation: your readiness to make the initial payment, your ability to manage mortgage repayments, and your job security. If your income is unstable or mortgage payments would be a struggle, it is not an opportune time to buy, irrespective of cooling measures.

These financial considerations should be the primary determinants of when you buy. Additionally, for homeownership, factors like location, layout, amenities, and personal connection to an area are often irreplaceable. In the resale market, each unit possesses distinct characteristics. If you find a property that perfectly meets your needs, risking its loss by waiting for potential market changes or government policies in your favor is not recommended.

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 …

All Buying Tips Opinion

Making Sense of 99-Year Landed Home Investments in Singapore

Jayson Ang – August 25, 2024 –

TLDR Investing in a 99-year leasehold landed property in Singapore can be a lucrative venture due to the country's land...

Mandarin Top 5

Top 5 Places to Watch Fireworks in Singapore

Jayson Ang – August 3, 2024 –

Singapore is known for its stunning skyline and vibrant celebrations, especially during events like National Day and New Year's Eve....

All Blog Posts Buying Tips Opinion

Does Sell 1 Buy 2 Strategy Still Works Today in 2024?

Jayson Ang – June 28, 2023 –

TLDR When considering the "Sell One By Two" property investment strategy, keep in mind that it involves selling your previous...

All Buying Tips Opinion

What Is The Best Location To Purchase A House To Ensure Your Child Has The Highest Probability Of Attending A Well-Renowned Primary School?

Jayson Ang – October 25, 2023 –

TLDR Parents often seek homes within 1km of desired primary schools to increase enrollment chances. Consider oversubscription rates and population...

Mandarin Top 5

Top 5 Rooftop Bars in Singapore with Amazing Views

Jayson Ang – July 27, 2023 –

Top 5 Rooftop Bars in Singapore with Amazing Views Singapore, the Lion City, is known for its stunning skyline and...

Buying Tips Mandarin Top 5

5 Reasons Why Timing the Singapore Property Market is a Risk You Shouldn’t Take

Jayson Ang – June 28, 2023 –

5 Reasons Why Timing the Singapore Property Market is a Risk You Shouldn't Take Entering the Singapore property market can...

Mandarin Top 5

Navigating the Singapore Property Market as a Foreign Investor: What You Need to Know

Jayson Ang – August 7, 2024 –

Singapore, a thriving hub of business and commerce in Southeast Asia, boasts a highly developed economy and a robust real...

All Opinion

Unseen Dangers of Putting Your Money in Upscale Freehold Properties in Singapore

Jayson Ang – February 17, 2024 –

TLDR Luxury freehold properties in Singapore may not always be the lucrative investment opportunities they appear to be. High-end properties...

All Buying Tips

5 Reasons To Invest In UK Property In 2024 Instead Of Saving

Jayson Ang – February 8, 2024 –

TLDR Investing in UK property in 2024 offers significant advantages over saving due to the potential for long-term value growth,...

All Blog Posts Buying Tips

When Is the Right Time to Sell Your House?

Jayson Ang – December 31, 2022 –

TLDR When deciding to sell your house in Singapore's competitive real estate market, timing is crucial. Selling during a seller's...

All Reports

21 Condominiums with Landed Properties Available for Foreign Purchase in Singapore

Jayson Ang – November 17, 2025 –

TLDR Foreigners who want landed living in Singapore but cannot buy traditional landed homes (except in Sentosa Cove) can consider...

All Buying Tips

It Seems Like Less Folks Living In HDB Flats Are Chasing After The Dream Of Owning A Condo

Jayson Ang – March 21, 2024 –

TLDR The Singapore property market is experiencing a decline in condo purchases by HDB flat owners due to multiple property...

Mandarin Top 5

5 Reasons Why Districts 9 and 10 are the Next Big Thing in Singapore Real Estate

Jayson Ang – March 2, 2024 –

Singapore is renowned for its thriving real estate market, with many desirable neighborhoods and top-notch properties. However, when it comes...

Mandarin Top 5

Top 5 : Common Characteristics Of Singapore Condos That Make Them An Attractive Investment Opportunity For Foreign Buyers

Jayson Ang – January 6, 2025 –

Singapore, a thriving hub of business and commerce in Southeast Asia, has become an attractive destination for foreign investors looking...

All Opinion Selling Tips

The Unexpected Choices: Why Some Singaporean Homebuyers Opt for Smaller Condos (Even When They Could Afford More Space)

Jayson Ang – February 2, 2026 –

TLDR In Singapore's property market, buyers often prioritize factors beyond just size. Many choose smaller units within their budget due...

All Blog Posts Buying Tips

Subscribe to Jayson Ang’s Singapore Property Newsletter

Jayson Ang – December 27, 2022 –

TLDR Jayson Ang's Singapore Property Newsletter offers valuable insights on real estate investments, market trends, and expert advice. The newsletters...