Housing Affordability in 2023: Is Singapore Property Truly Unaffordable?
TLDR Singapore’s property market faces challenges with high prices, especially in private housing. While public housing remains more affordable, the...
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 …
URA’s Draft Master Plan 2025: A Blueprint for 80,000 New Homes Across 10+ Estates
TLDR The URA Draft Master Plan 2025 outlines the creation of 80,000 new homes across more than 10 estates over...
Read More
Singapore’s HDB Projects: From Unique Landmarks to Just Another Brick in the Wall?
Take a look at this chill spot in Yew Tee. Someone's gone all out to make it feel like an...
Read More
The Hidden Realities of Mega-Development Condo Living: Five Overlooked Issues
TLDR Mega-developments in Singapore—condos with 1,000+ units—promise affordability, abundant facilities, and lower maintenance fees, but they come with hidden challenges....
Read More
Singapore’s Property Insights : Where to Find 5 Hidden Gems?
Singapore's Property Insights : Where to Find 5 Hidden Gems? With its booming economy, vibrant culture and attractive regulations, Singapore...
Read More
Planning for a Future Landed Property Purchase After Selling Your BTO: Investment Tips
TLDR Transitioning from a BTO to a landed property necessitates understanding market trends, meticulous financial planning, exploring financing options, enhancing...
Read More
The Top 5 Reasons To Invest In Singapore Property
Singapore, a small island nation with a thriving economy, has long been considered an attractive destination for property investment. The...
Read More
Singapore’s Aging Population: Is the Housing Market Ready?
TLDR Singapore is rapidly aging, with one in four citizens expected to be over 65 by 2030. Current housing models,...
Read More
Breaking Through the Stalemate of En Bloc Sales
TLDR The Singapore property market faces challenges with the ongoing en bloc stalemate. Lower success rates, higher development risks, and...
Read More
7 Lesser-Known ‘Minor’ Condo Problems That Could Lead to Major Issues Down the Line
TLDR When choosing a condo, it's crucial to look beyond MRT station proximity, developer reputation, and price. Overlooked details can...
Read More
5 Reasons Why You Should Consider Investing In Singapore Real Estate
TLDR Investing in Singapore real estate offers attractive tax incentives, low cost of living, high rental yields, market reliability, diversification...
Read More
Top 5 Questions to Ask : Is Singapore Property Investment for Me?
Singapore has long been a popular destination for property investors, both local and international. The city-state's stable economy, strong infrastructure,...
Read More
A Step-by-Step Guide To Upgrading From an HDB Flat To Your a Private Property
TLDR Understanding the complexities of upgrading from an HDB flat to a private property in Singapore involves selling your HDB...
Read More
The COV Conundrum: Navigating Singapore’s Property Premium
TLDR Cash Over Valuation (COV) is the difference between a property's official valuation and the price a buyer is willing...
Read More
A Potential Game-Changer: Singapore’s Proposed Minimum Transaction Rule for Property Agents in 2025
TLDR In Singapore’s real estate market, experience alone no longer guarantees an agent’s competence. Many agents maintain licenses without significant...
Read More
Top 5 Must-Try Foods in Singapore
Top 5 Must-Try Foods in Singapore Singapore, a melting pot of cultures and cuisines, offers a diverse and tantalizing array...
Read More
Why Older Freehold Condominiums Are Losing Their Edge in En‑Bloc Deals (2025)
TLDR Older freehold condominiums in Singapore are losing their edge in en‑bloc deals due to several structural shifts. Developers increasingly...
Read More
Top 5 Reasons : Why Penthouses In Singapore Are Popular With Crazy Rich Asians
Singapore, a city-state known for its stunning skyline and luxurious lifestyle, has become a popular destination for the ultra-wealthy. Among...
Read More
Why Can’t We Buy Low, Sell High?
Madam Tan voiced that approximately two years ago, when her apartment hit its minimum occupation period, she and her spouse...
Read More
Most Buyers Miss This Condo Checklist Item — Until It’s Too Late
TLDR When buying a condo, many overlook the importance of the Management Corporation Strata Title (MCST) and its finances. Beyond...
Read More