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 …

Mandarin Top 5

Top 5 Must-Know Facts about Luxury Properties in Districts 9 of Singapore

Jayson Ang – August 19, 2024 –

Singapore, a bustling city-state known for its impressive skyline and vibrant economy, has always been an attractive destination for property...

All Buying Tips Selling Tips

Singapore Homebuyers: Finding Hidden Value in ‘Undesirable’ Property Traits

Jayson Ang – June 15, 2025 –

TLDR Many perceived drawbacks in Singapore’s property market—such as mortgage lock-ins, leasehold status, west-facing units, nearby construction, inefficient spaces, and...

All Buying Tips

Why It’s Not Financially Sensible to Pay Off Your HDB Flat Home Loan in Advance

Jayson Ang – April 29, 2024 –

TLDR When deciding whether to repay your HDB flat loan early, consider the limitations of not being able to obtain...

All Blog Posts Buying Tips

5 Must-Know Questions Before Investing in Real Estate

Jayson Ang – June 15, 2023 –

TLDR When considering whether to buy a new development or a resale property, it can be challenging. In the blog...

All Buying Tips Opinion Selling Tips

Market Mistakes in Property Investment: Key Lessons and Strategies for Success

Jayson Ang – July 16, 2024 –

TLDR In property investment, common mistakes include lack of research, overleveraging, and neglecting due diligence. To succeed, conduct thorough market...

All Buying Tips

Is 2024 the Perfect Moment to Refinance Your Home Loan? Discover What Homeowners Should Consider!

Jayson Ang – July 20, 2024 –

TLDR The article covers the shift to SORA for home loan rates, urging consideration of refinancing options amidst rising rates....

Mandarin Top 5

Top 5 Cafes in Singapore for Brunch

Jayson Ang – March 10, 2024 –

Singapore, a melting pot of cultures and flavors, offers an incredible array of culinary experiences to tantalize your taste buds....

All Buying Tips Opinion

6 Possible Risks of Purchasing a One-Bedroom Apartment in Singapore: Key Considerations to Be Aware Of

Jayson Ang – July 13, 2025 –

TLDR One-bedroom condos in Singapore are attractive for their lower entry price and rental potential, but buyers should be aware...

All Buying Tips Opinion

Mega Developments vs. Regular Condos in Singapore: A Data-Driven Comparison

Jayson Ang – March 22, 2026 –

TLDR Mega-developments (1,000+ units) in Singapore, once seen as chaotic, now offer competitive pricing and extensive facilities, making them attractive...

All Buying Tips Opinion Selling Tips

Will Property Owners Earn More By Keeping Residential Properties For An Extended Period?

Jayson Ang – December 6, 2025 –

TLDR In Singapore, holding a residential property longer typically yields higher profits—averaging $665,000 after 20 years, versus $200,000 for 5–10...

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 Opinion

Budget 2024: What To Expect For The Singapore Residential Market?

Jayson Ang – February 18, 2024 –

TLDR In 2025, owner-occupiers of residential properties can benefit from property tax relief based on the Annual Value Band. Retirees...

All Buying Tips Opinion Selling Tips

The COV Conundrum: Navigating Singapore’s Property Premium

Jayson Ang – October 24, 2025 –

TLDR Cash Over Valuation (COV) is the difference between a property's official valuation and the price a buyer is willing...

Mandarin Top 5

Top 5 Places to Learn About Singapore’s History

Jayson Ang – August 9, 2024 –

Singapore, a thriving metropolis with a rich history and diverse cultural heritage, offers numerous opportunities for visitors and locals alike...

Mandarin Top 5

Top 5 Best Unique Nighttime Experiences in Singapore

Jayson Ang – December 13, 2024 –

Singapore, a vibrant city-state known for its stunning skyline and diverse culture, truly comes alive at night. As the sun...

All Buying Tips

The Unsung Importance of Property Finishing: More Than Just Aesthetics

Jayson Ang – December 30, 2025 –

TLDR Many homebuyers overlook the importance of high-quality finishes in properties, assuming they will renovate later or that tenants won’t...

All Buying Tips Opinion Selling Tips

Understanding Government Land Sales (GLS) and Their Influence on Singapore’s Property Market

Jayson Ang – July 23, 2026 –

TLDR Singapore’s Government Land Sales (GLS) Programme is a key tool used by the government to manage land supply and...

All Buying Tips

Integrated Developments: Do They Live Up to the Hype? Check Out These Five Factors

Jayson Ang – March 3, 2024 –

TLDR Integrated developments in Singapore offer a one-stop solution for residents by combining residential, commercial, and transport elements in one...

All Buying Tips

How Much You Need to Earn to Afford a Condo 2023

Jayson Ang – October 30, 2023 –

TLDR When considering investing in a private property in Singapore, it's important to understand your borrowing capacity. Financial experts recommend...