5 Singapore’s Best Property Investments for 2023: Where to Find Growth and Income
The Singapore property market has long been a sought-after investment destination, with its stable economy and growing population making it...
Read More
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:
- 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.
- 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.
- 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.
- 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:
- 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 …
Learning Hard Truths in Property Investment: Timing the Market Can Hurt
TLDR The blog post delves into the complexities of market timing in property investment, highlighting the risks and challenges associated...
Read More
Top 5 Rooftop Bars in Singapore with Amazing Views
Top 5 Rooftop Bars in Singapore with Amazing Views Singapore, the Lion City, is known for its stunning skyline and...
Read More
5 Pros of Buying a New Development
Deciding whether to buy a new development or a resale property can be a challenge. In the next few video...
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 Factors : Why Investing In A Property With A Good View Can Be A Profitable Move In Singapore
Investing in a property with a good view in Singapore can be a profitable move for several reasons. Here are...
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
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
Top 5 Factors That Real Estate Investors Should Consider When Selecting A Luxury Condo In Singapore
Investing in a luxury condominium in Singapore is an attractive option for real estate investors seeking high-quality properties with potential...
Read More
5 Top Reasons Why Chinese Love to Invest in Singapore Property Market Today
Here are the top 5 reasons why Chinese love to invest in Singapore's property market today. 1. Political stability: Singapore...
Read More
3 Steps to Prevent Rental Scams
TLDR: Prevent Rental Scams in Real Estate Scammers are targeting prospective tenants by impersonating Real Estate Salespersons (RES) to deceive...
Read More
Exploring the Allure of Freehold Titles Among Singaporeans
TLDR Freehold properties remain highly attractive in Singapore due to their scarcity, lasting value, and legacy potential. Buyers are drawn...
Read More
Quick Guide for Condo Sellers: Timeline to Sell Condo in 2023
TLDR When selling a condominium in Singapore, understanding the critical steps is key. First, ensure you are not liable for...
Read More
Top 5 Best Alternative Music Venues in Singapore
Singapore, a vibrant and bustling city-state, is known for its diverse culture and thriving arts scene. The city's love for...
Read More
Buy a $1M Resale HDB or a $1M Resale Condo?
TLDR When comparing a million-dollar HDB flat to a private property of the same value, the HDB flat offers more...
Read More
The Impact of a Real Estate Agent on Your Property’s Selling Price
TLDR In the world of real estate, the value of property agents lies in their ability to create competition among...
Read More
Thinking About Investing In An Old Landed Property In Singapore? 7 Crucial Tips To Keep In Mind Before You Make Your Move
TLDR Older properties come with unique challenges due to outdated design elements, potential roofing issues, odd land shapes, basement drawbacks,...
Read More
Here’s How Property Data Can Be Misleading: Navigating Through Common Misunderstandings
TLDR When comparing property prices, discrepancies can arise due to various factors like timing of purchase, scarcity in niche projects,...
Read More
Top 5 : What I Wish I Had Known about Property
The world of real estate is a complex and dynamic field, filled with opportunities and challenges. It's a realm where...
Read More
Learn How To Negotiate For The Best Price When Purchasing a Resale HDB Flat
Navigating the complexities of purchasing a resale HDB flat requires honing negotiation skills and market awareness. Understanding property valuations, seller...
Read More
