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 : Dangerous Ideas Singapore Property Investors Have

Jayson Ang – February 19, 2025 –

Investing in property, particularly in a thriving market like Singapore, can be an enticing prospect. However, it's not without its...

Mandarin Top 5

Top 5 Factors : Singapore Real Estate Investing vs Stocks and Bonds: Which is Better?

Jayson Ang – October 23, 2024 –

Investing is an essential aspect of wealth creation and financial planning. With a plethora of investment options available, it can...

All Blog Posts Buying Tips

Checklist for First-Time Homebuyers in Singapore: A Guide to Viewing Condos

Jayson Ang – May 4, 2023 –

TLDR The checklist provides essential steps for first-time homebuyers in Singapore to consider when viewing a condo. It includes aspects...

Mandarin Top 5

Beyond Marina Bay Sands: Uncovering Singapore’s 5 Little-Known Secrets

Jayson Ang – July 29, 2023 –

Beyond Marina Bay Sands: Uncovering Singapore's 5 Little-Known Secrets Singapore is a small country with a rich history and culture....

All Blog Posts Buying Tips

Ultimate Handbook on HDB Income Ceilings for BTO, Resale Flats, and Executive Condominiums

Jayson Ang – December 23, 2024 –

TLDR Owning an HDB home in Singapore depends largely on income ceilings. The HDB income ceiling limits monthly household earnings...

Mandarin Top 5

Top 5 Best Secret Gardens in Singapore

Jayson Ang – October 25, 2024 –

Singapore, a bustling city-state known for its modern architecture and vibrant culture, is also home to a plethora of hidden...

All Buying Tips Opinion

Here Are 6 Interesting Facts About The Minimum Occupation Period (MOP) That Not Many People Know About In Singapore

Jayson Ang – May 1, 2024 –

TLDR When it comes to understanding the Minimum Occupation Period (MOP) set by the Housing Development Board (HDB) in Singapore,...

Mandarin Top 5

Top 5 Most Common Red Flags To Watch Out For When Investing In Singapore Property

Jayson Ang – August 11, 2024 –

Investing in Singapore property has long been considered a lucrative and stable way to build wealth. However, like any investment,...

All Blog Posts Opinion

Unlock the Potential of Your Home: 5 Reasons to Start Selling Now

Jayson Ang – June 6, 2023 –

TLDR When considering selling your home, several key indicators can help you determine if it's the right time to make...

Mandarin Top 5

Powering The Lion City: The Top 5 Industries Driving Singapore’s Economy

Jayson Ang – July 20, 2023 –

Powering The Lion City: The Top 5 Industries Driving Singapore's Economy Singapore is widely recognized as one of the most...

Mandarin Top 5

Top 5 : Questions Should Investors Be Asking Before Investing In Singapore’s High-End Rental Market

Jayson Ang – February 1, 2025 –

Singapore's high-end rental market has been a hot topic of discussion among investors worldwide. With the city-state's robust economy, excellent...

All Blog Posts Buying Tips

4 Simple Strategies to Help Future Homeowners Save Money

Jayson Ang – July 15, 2023 –

TLDR When it comes to being a new homeowner, it's essential to prioritize regular maintenance to avoid costly repairs down...

All Buying Tips Opinion

Beyond the First Glance: What Astute Buyers (and Agents) Look for During Property Viewings

Jayson Ang – August 16, 2026 –

TLDR Property viewings are most valuable when strategically timed, not just repeated. Buyers often revisit homes at convenient hours, but...

Mandarin Top 5

Top 5 Reasons : Why Developers Seem Hesitant To Commit To New Projects In Singapore

Jayson Ang – December 1, 2024 –

Singapore, a thriving global city-state, has long been known for its robust economy and attractive real estate market. However, in...

All Buying Tips Opinion Reports

Are Million-Dollar HDB Landed Homes Still Worth A Look In 2025 Despite Their Age?

Jayson Ang – October 5, 2025 –

TLDR Old HDB landed homes, like those in Whampoa, are rare and now fetch over $1.5 million, but their value...

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...