Fraud Blocker
Your search results

The Scarcity of Resale Condos in Singapore (2025): Understanding the Supply Shortage

Posted by Jayson Ang on September 10, 2026
0 Comments

TLDR

Resale condos in Singapore are facing a sharp supply crunch in 2025, driven by fewer new launches, developers holding back due to rising land costs, and owners reluctant to sell amid escalating prices. This scarcity has created intense competition among buyers, pushing resale values higher and narrowing options for those seeking immediate occupancy. Unlike new launches, resale units offer ready-built convenience and established communities, making them especially attractive to families and upgraders. However, limited listings mean buyers often compromise on location, size, or budget. Sellers, on the other hand, benefit from strong bargaining power, with well-maintained units commanding premiums. The imbalance highlights a structural challenge in Singapore’s housing market: while demand remains resilient, supply-side constraints are amplifying affordability pressures, reshaping buyer strategies, and reinforcing the long-term appeal of property ownership as both a lifestyle choice and investment hedge.

If you’re currently in the market for a resale condominium in Singapore, you might be encountering a challenging landscape characterized by limited options and, in some projects, a striking absence of recent transactions. This observation is not unique; both buyers and property agents are experiencing the impact of fewer owners choosing to sell their condos. Several intertwined factors are contributing to this dwindling supply.

The Dominant Factor: Cost of a Replacement Property

A primary driver behind the reluctance to sell is the current high cost of replacement properties. Even if owners can sell their existing condo at a premium, the appreciation may not be sufficient to bridge the financial gap to a more expensive new home. This is evident in the significant price increases seen in new launch and resale condos over the past five years:

  • New Launch Condo Prices: Rose approximately 40% from $1,887 psf in January 2020 to $2,640 psf in January 2025.
  • Resale Condo Prices: Increased about 25% from $1,348 psf to $1,695 psf over the same period.

This “buy high, sell high” conundrum means that for many owners, the appreciation of their current property simply isn’t enough to facilitate a comfortable upgrade. As a past example illustrated, even with $2 million from an en bloc sale, a homeowner found that surrounding resale condos were already averaging $1.5 million, and a nearby new launch (Sceneca Residence) was priced above $2 million for a three-bedroom unit, making an equivalent replacement challenging.

Other Contributing Factors to the Supply Shortage:

  1. Higher ABSD Rates: The significantly increased Additional Buyer’s Stamp Duty (ABSD) rates are a strong deterrent for owners of second or subsequent properties. If they sell, replacing the property later incurs a much higher ABSD. For instance, a couple who bought their second property in 2012 (when ABSD for a second home was 0%) would now face a 20% ABSD if they tried to replace it. This disincentive often leads owners to hold onto their units and rent them out instead. Foreign owners face an even steeper hurdle, with a 60% ABSD on subsequent purchases (barring specific exemptions), making them highly resistant to selling. The psychological impact of ABSD rates historically never decreasing also contributes to a fear of never being able to re-enter the market for a second property once sold.
  2. Smaller Newer Replacements: While GFA (Gross Floor Area) harmonization has meant that some newer condos offer more usable space despite seemingly smaller overall square footage (by excluding areas like air-con ledges or long corridors), the sheer size of many older condos is often unmatched by today’s new launches. For example, an owner selling a 1,388 sq. ft. unit from an older development might find that their proceeds can only buy a 900 sq. ft. or smaller new launch unit. This significant compromise in living space makes many owners reluctant to sell, especially as spacious resale condos become increasingly rare.
  3. Waiting Periods for Downsizing to HDB Flats: Private property sellers who wish to downsize to a resale HDB flat face a 15-month waiting period after their private property sale. (For BTO flats, the wait extends to 30 months.) While this measure doesn’t affect those aged 55 or older who are downsizing to a 4-room or smaller flat, it creates “stickiness” for others. The inconvenience of finding interim accommodation and the logistical challenges prompt some owners to postpone their downsizing plans.
  4. Tighter Financing and Interest Rate Concerns: Recent cooling measures have tightened loan restrictions, including reduced loan tenures, a lower Total Debt Servicing Ratio (TDSR) (from 60% to 55%), and a reduced maximum Loan-to-Value (LTV) ratio (from 80% to 75%). For older upgraders, these restrictions translate to even shorter loan tenures and higher monthly repayments, compounded by the larger loan quantums required for today’s higher property prices. The uncertain global economic climate also adds to interest rate worries. The prospect of potentially high interest rates for another 10-20 years makes holding onto their current, fully paid-up or low-mortgage home a much safer option for many owners.

The Ripple Effect: A Weak En Bloc Market

The reluctance of current owners to sell also impacts the en bloc market. Developers looking for collective sale sites face the same challenges: owners are unwilling to sell due to high replacement property costs, financing hurdles, and the impact of ABSD on any additional properties they might acquire. Consequently, the prevailing market conditions suggest that en bloc sales are likely to remain weak for the foreseeable future, adding another layer to the overall supply shortage in the resale condo market.

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:

  1. Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
  2. 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 …


Sentosa’s Sizzling Property Market: 5 Reasons Chinese Investors are Flocking to Singapore’s Premier Island
Buying Tips Mandarin Top 5

Sentosa’s Sizzling Property Market: 5 Reasons Chinese Investors are Flocking to Singapore’s Premier Island

Sentosa's Sizzling Property Market: 5 Reasons Chinese Investors are Flocking to Singapore's Premier Island Here are the top 5 reasons...
Read More
The Quick Guide For Buying Landed Property In Singapore
All Blog Posts Buying Tips

The Quick Guide For Buying Landed Property In Singapore

TLDR When it comes to purchasing a landed property in Singapore, there are three main types to consider: terrace houses,...
Read More
5 Smart Techniques That Resourceful Homebuyers Utilize to Overcome Restrictions on Home Loans
All Buying Tips

5 Smart Techniques That Resourceful Homebuyers Utilize to Overcome Restrictions on Home Loans

TLDR When it comes to navigating the complex world of home loans and property acquisition, it's crucial to be aware...
Read More
Singapore Property Price Set to Explode Upwards in 2024?
All Blog Posts Opinion

Singapore Property Price Set to Explode Upwards in 2024?

TLDR Understanding the factors influencing property prices in Singapore for 2024 can help in making informed decisions. Despite high rental...
Read More
6 Essential Tips for Singaporean New Homebuyers
All Blog Posts Buying Tips

6 Essential Tips for Singaporean New Homebuyers

TLDR Best practices for first-time homebuyers, the key points include setting clear and detailed goals, planning a realistic housing budget,...
Read More
Building A World-Class Nation: Top 5 Facts About Singapore’s Developed Infrastructure
Mandarin Top 5

Building A World-Class Nation: Top 5 Facts About Singapore’s Developed Infrastructure

Building A World-Class Nation: Top 5 Facts About Singapore's Developed Infrastructure Singapore is known for its high standard of living,...
Read More
Top 5 : Singapore’s Most Desirable Properties: A Look at the City’s Most Coveted Real Estate
Mandarin Top 5

Top 5 : Singapore’s Most Desirable Properties: A Look at the City’s Most Coveted Real Estate

Singapore, a bustling city-state known for its impressive skyline and thriving economy, is home to some of the most desirable...
Read More
5 Tips : How To Choose The Right Property Agent To Help With Your Singapore Property Investment
Mandarin Top 5

5 Tips : How To Choose The Right Property Agent To Help With Your Singapore Property Investment

Choosing the right property agent is crucial to the success of your Singapore property investment. A good agent can provide...
Read More
Beyond Marina Bay Sands: Uncovering Singapore’s 5 Little-Known Secrets
Mandarin Top 5

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

Beyond Marina Bay Sands: Uncovering Singapore's 5 Little-Known Secrets Singapore is a small country with a rich history and culture....
Read More
The 99-to-1 Property Split Strategy: Legality and Risks
All Opinion

The 99-to-1 Property Split Strategy: Legality and Risks

TLDR The 99-to-1 property ownership split in Singapore, where one spouse holds 99% and the other 1%, is used to...
Read More
The 5 Most Popular Types of Properties to Buy in Singapore
Mandarin Top 5

The 5 Most Popular Types of Properties to Buy in Singapore

The 5 Most Popular Types of Properties to Buy in Singapore 1. Condominiums: Condos are popular among buyers because they...
Read More
Here Are 6 Interesting Facts About The Minimum Occupation Period (MOP) That Not Many People Know About In Singapore
All Buying Tips Opinion

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

TLDR When it comes to understanding the Minimum Occupation Period (MOP) set by the Housing Development Board (HDB) in Singapore,...
Read More
The Importance of Caution Regarding Property Oversupply in Singapore
All Buying Tips Opinion Selling Tips

The Importance of Caution Regarding Property Oversupply in Singapore

TLDR Recent challenges in China's real estate sector reveal valuable lessons for Singaporeans, emphasizing the importance of understanding governmental interventions...
Read More
Discover How The CPF Accrued Interest Can Impact Your Property Sale Proceeds
All Blog Posts Buying Tips

Discover How The CPF Accrued Interest Can Impact Your Property Sale Proceeds

Singaporeans are renowned for being smart and savvy - especially when it comes to selling their homes, whether it's an...
Read More
The Influence of Soaring Land Costs on Singapore’s Real Estate Market: A Look at Land Price Trends Since 1992
All Buying Tips Opinion

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
Top 5 : Factors Influence Real Estate Investors’ Decisions when Investing in Singapore Condos?
Mandarin Top 5

Top 5 : Factors Influence Real Estate Investors’ Decisions when Investing in Singapore Condos?

Singapore's real estate market has always been an attractive investment option for both local and foreign investors. The city-state's stable...
Read More
Top 5 Cafes in Singapore for Brunch
Mandarin Top 5

Top 5 Cafes in Singapore for Brunch

Singapore, a melting pot of cultures and flavors, offers an incredible array of culinary experiences to tantalize your taste buds....
Read More
How Can You Prepare for Retirement in an Expensive Real Estate Market? Discover Your Options Now!
All Blog Posts Buying Tips Opinion

How Can You Prepare for Retirement in an Expensive Real Estate Market? Discover Your Options Now!

TLDR The article discusses the challenges of investing in a second property for retirement amidst Singapore's real estate market conditions....
Read More
5 Factors : Why Singapore’s Property Market Is A Good Hedge Against Inflation
Mandarin Top 5

5 Factors : Why Singapore’s Property Market Is A Good Hedge Against Inflation

As inflation becomes a growing concern for investors worldwide, the stability of Singapore's property market has become an attractive option...
Read More
A Step-by-Step Guide To Upgrading From an HDB Flat To Your a Private Property
All Blog Posts Buying Tips

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
1 … 30 31 32 33 34 … 37

Compare Listings