Upgrading to a Condo by Age 35: A Feasible Goal for the Average Singaporean in 2025?
TLDR Upgrading from an HDB flat to a condo by age 35 is technically feasible for median-income Singaporeans, but only...
Read More
The Paradox: Why New Launch Condos in Singapore Are Flying Off the Shelves Despite Affordability Concerns
TLDR
Despite widespread online complaints about housing affordability, new launch condos in Singapore continue to sell rapidly. HDB resale prices climbed another 2.5% last quarter, with over half of transactions above $600,000 and 328 flats crossing the million-dollar mark. Private launches like Chuan Park achieved 76% sales at over $2,500 psf, while Emerald of Katong drew thousands of cheques, signaling strong demand. This paradox stems from several forces: buyers gradually accepting higher prices as the new norm, individuals projecting frugality online while upgrading privately, and intergenerational wealth transfers fueling purchases. Older generations, shaped by past property booms, often encourage and support younger buyers, reinforcing a real estate-centric mindset. While online sentiment suggests waiting for a correction, market behavior shows consistent buying momentum. Delaying purchases risks higher costs later, making timing less about speculation and more about readiness and financial capacity.
Just as algorithms create “echo chambers” in US politics, a similar phenomenon might be at play in Singapore’s property market. Social media platforms are rife with discussions lamenting the unaffordability of housing, with many users expressing outrage over escalating resale flat prices and the perceived necessity of drastic measures to afford a home. Even government advertisements highlight the affordability of BTO flats, seemingly acknowledging widespread public sentiment.
However, a closer look at market realities reveals a stark contrast to this online narrative. The latest quarter saw HDB resale prices climb by an additional 2.5%, with over half of the 8,433 transactions exceeding $600,000. While million-dollar flats remain a small fraction of the market, their transaction count reached 328, surpassing the figures for the first two quarters of the year.
In the private property sector, new launches are seeing robust sales. Chuan Park, for instance, sold 76% of its units over its launch weekend, with average prices hitting over $2,500 psf. This comes despite widespread disbelief and shock in 2022 when new launch prices at $2,100 psf were deemed absurd in online forums. As of this writing, results for Emerald of Katong and Nava Grove are pending, but the record number of cheques collected for Emerald of Katong (3,629, plus over 500 VIP and agent cheques) suggests another strong sales performance, assuming developers don’t overprice. This disconnect between public online sentiment and actual market behavior is increasingly evident.
Several theories attempt to explain this phenomenon:
1. Market Acceptance of New Price Levels: While US Federal Reserve rate cuts and lower interest rates certainly play a role, a significant factor might be that buyers have finally accepted the new pricing as the norm after months of a seemingly soft market. The property market often experiences a period of hesitation when prices initially rise, with buyers hoping for corrections. However, as prices stabilize or continue to climb, it becomes clear that these are not anomalies but the new baseline. At this point, buyers who were previously on the sidelines re-enter the market, driven by necessity or the fear of missing out (FOMO).
2. The “Prudent Investor” Persona: Another theory suggests that some individuals present a “smart and prudent with money” image online. There are instances of people publicly decrying expensive condos, only to seek advice on upgrading a few years later. While this isn’t universally true, the prevalence of such behavior could contribute to a misleading impression of “public opinion” on social media.
3. Intergenerational Wealth Transfer and Real Estate Mentality: A powerful, often invisible force driving the market is the influence of older Singaporeans (in their 60s or 70s). Having witnessed astronomical property appreciation create multi-millionaires in their time, this generation often encourages and financially supports their offspring to purchase prime location flats or upgrade to condos, viewing property ownership as a cornerstone of financial security. This represents not just an intergenerational transfer of wealth, but also a transfer of a deeply ingrained real estate-centric mindset. Personal experiences from a bygone era often override current market realities, cooling measures, or empirical evidence in shaping their views.
The result is a younger demographic that expresses frustration about housing costs online, yet simultaneously feels compelled to buy, often with financial assistance from older generations.
The Questionable Wisdom of “Waiting It Out”:
Online discussions might create the impression of an unsustainable market poised for a crash. While such a scenario can never be entirely ruled out, the reality on the ground consistently points otherwise. Singaporeans continue to buy. Postponing a property purchase based on a contrarian view could very well lead to paying a higher price later. While this might sound like a sales pitch from a realtor or seller, current market dynamics increasingly align with this perspective.
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 …
Why Home Staging Is Important In A Competitive Real Estate Market
Singapore's property scene has always been a powerhouse, effortlessly combining the new with the old. It's a real estate playground...
Read More
Can You Still Make Money from Older Freehold Condos in Singapore
TLDR While freehold condos might seem like a solid investment, the rise of new developments and aging buildings cast doubt...
Read More
HDB Loan Vs Bank Loan: Pros & Cons
TLDR When deciding between an HDB loan or a bank loan for purchasing a property in Singapore, consider key factors...
Read More
Exploring Singapore: The Top 5 Surprising Facts You Never Knew
Singapore, a city-state in Southeast Asia, is known for its rich cultural heritage, diverse population, and vibrant food scene. This...
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
Top 5 Reasons : How Can A Reputable Real Estate Agent Help You When Investing In Singapore Property
Investing in Singapore property can be a lucrative venture, given the country's stable economy, strategic location, and high demand for...
Read More
Top 5 : Best Architectural Marvels in Singapore
Singapore, a vibrant city-state known for its diverse culture and stunning skyline, is also home to some of the most...
Read More
6 Hot Property Market Trends in Singapore 2024: What Buyers Should Anticipate
TLDR When diving into Singapore's property market, expect a rollercoaster ride as trends shift drastically in 2024. Landlords and tenants...
Read More
7 Frequently Overlooked Questions That New Condo Buyers Should Ask At The Showflat To Avoid Any Regrets In The Future!
TLDR Newly launched condominium buyers face uncertainties about price changes, proximity to schools, construction methods, maintenance costs, elevator availability, commercial...
Read More
Top 5 Reasons : Why is Supply so tight for Singapore Property?
Singapore's property market has been experiencing a tight supply in recent years, leading to increased demand and rising property prices....
Read More
Top 5 Parks and Nature Reserves to Visit in Singapore
Singapore, often referred to as the "Garden City," is a vibrant and diverse nation that has made significant strides in...
Read More
The Influence of Soaring Land Costs on Singapore’s Real Estate Market: A Look at Land Price Trends Since 1992
TLDR When it comes to understanding the fluctuations in land prices in Singapore, historical patterns reveal significant spikes and dips...
Read More
6 Reasons to Think Twice Before Hiring a Friend or Family Member as Your Agent
TLDR In Singapore, hiring a friend or family member as your property agent can be risky. Disclosing sensitive financial details...
Read More
Discover 7 Reasons to Sell and Right-Size Your Property
TLDR The increasing trend of right-sizing properties in Singapore is driven by various factors such as lifestyle changes, financial gains,...
Read More
Freehold vs. Leasehold Condos in 2025: An Updated Performance Analysis
TLDR Freehold vs. leasehold condos in Singapore show nuanced performance differences over the past decade. Leasehold units often deliver stronger...
Read More
Top 5 Best Instagrammable Spots in Singapore
Singapore, a vibrant and modern city-state, is known for its stunning architecture, lush green spaces, and colorful streets. With its...
Read More
Top 5 Sushi Restaurants in Singapore
Singapore, a melting pot of cultures and culinary delights, is known for its diverse and vibrant food scene. Among the...
Read More
The High Price of Picking the Wrong Property in Singapore in 2025
The Steep Price Of Making A Mistake When Buying Property In Singapore Are you yearning for a condo, but the...
Read More
Looking To Buy An Older HDB Flat? Here’s What You Need To Know Before You Sign On The Dotted Line!
TLDR When considering purchasing an older flat, ensure to thoroughly inspect wet areas for leaks, check balcony conditions, watch out...
Read More