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 …


When Should You Consider Investing in Singapore Property, and When Should You Avoid It?
All Buying Tips Selling Tips

When Should You Consider Investing in Singapore Property, and When Should You Avoid It?

TLDR Investing in real estate is a complex decision influenced by personal goals, investment horizon, rental plans, and financial liquidity....
Read More
Top 5 Tips : How to Choose the Right Type of Property to Invest in Singapore – Expert Tips and Analysis!
Mandarin Top 5

Top 5 Tips : How to Choose the Right Type of Property to Invest in Singapore – Expert Tips and Analysis!

Investing in property has long been a popular method for growing wealth in Singapore. With million-dollar HDBs being sold and...
Read More
Top 5 : Advantages of Owning a Luxury Condominium in Singapore for Long-Term Investment
Mandarin Top 5

Top 5 : Advantages of Owning a Luxury Condominium in Singapore for Long-Term Investment

Singapore, a thriving global city-state, has become an attractive destination for real estate investors. Among the various property types available,...
Read More
The Enduring Logic: Why a 3-Room HDB Flat Might Still Be a Strategic Starting Point in 2025
All Opinion

The Enduring Logic: Why a 3-Room HDB Flat Might Still Be a Strategic Starting Point in 2025

TLDR A decade ago, starting with the smallest resale 3-room flat was recommended for quick property upgrading due to shorter...
Read More
Unpacking Property Ownership: Joint Tenancy vs. Tenancy-in-Common 
All Buying Tips Selling Tips

Unpacking Property Ownership: Joint Tenancy vs. Tenancy-in-Common 

TLDR When a property has multiple owners, the choice of ownership type is crucial to determine how shares are distributed...
Read More
Singapore’s Top 5 Property Investment Hotspots for 2024
Mandarin Top 5

Singapore’s Top 5 Property Investment Hotspots for 2024

As one of the world's leading financial centers, Singapore has always been a popular destination for property investment. With a...
Read More
Is Lifelong Renting a Viable Option in Singapore?
All Buying Tips Opinion Selling Tips

Is Lifelong Renting a Viable Option in Singapore?

TLDR In Singapore, while the majority aspire to own homes, a small segment opts for lifelong renting, driven by personal...
Read More
5 Things to Know About Singapore’s Freehold & Leasehold Properties
Buying Tips Mandarin Top 5

5 Things to Know About Singapore’s Freehold & Leasehold Properties

5 Things to Know About Singapore's Freehold & Leasehold Properties Here are 5 things you need to know about Singapore's...
Read More
Top 5 : Must-Do Experiences to Make the Most of Your Singapore Trip
Mandarin Top 5

Top 5 : Must-Do Experiences to Make the Most of Your Singapore Trip

Singapore, a vibrant island city-state located off the southern coast of Malaysia, is a melting pot of cultures and a...
Read More
The 15-Month Wait-Out Period: An Unnecessary Burden in a Challenging Economy
All Buying Tips Opinion Selling Tips

The 15-Month Wait-Out Period: An Unnecessary Burden in a Challenging Economy

TLDR The 15-month wait-out period introduced in September 2022 requires private property owners to wait before buying a resale or...
Read More
Why En Blocs Often Fail to Succeed
All Opinion

Why En Blocs Often Fail to Succeed

TLDR In this blog post, the focus is on the challenges and complexities of en-bloc transactions in Singapore's property market....
Read More
The Top 5 Renovation Tips For Increasing The Value Of Your Singapore Property Investment
Mandarin Top 5

The Top 5 Renovation Tips For Increasing The Value Of Your Singapore Property Investment

When it comes to increasing the value of your Singapore property investment, strategic renovations can make a significant difference. Here...
Read More
Upgrading to a Condo by Age 35: A Feasible Goal for the Average Singaporean in 2025?
All Buying Tips Opinion Selling Tips

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
Top 5 : Tips To Plan Your Retirement in Property Investments in Singapore
Mandarin Top 5

Top 5 : Tips To Plan Your Retirement in Property Investments in Singapore

Planning for retirement is a crucial aspect of financial management, and property investment has emerged as a popular strategy for...
Read More
The Unexpected Choices: Why Some Singaporean Homebuyers Opt for Smaller Condos (Even When They Could Afford More Space)
All Opinion Selling Tips

The Unexpected Choices: Why Some Singaporean Homebuyers Opt for Smaller Condos (Even When They Could Afford More Space)

TLDR In Singapore's property market, buyers often prioritize factors beyond just size. Many choose smaller units within their budget due...
Read More
Learn How To Negotiate For The Best Price When Purchasing a Resale HDB Flat
All Blog Posts Buying Tips

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
The Emergence of Million-Dollar HDB Flats in Singapore: Could This Become the Standard Moving Forward?
All Buying Tips Selling Tips

The Emergence of Million-Dollar HDB Flats in Singapore: Could This Become the Standard Moving Forward?

TLDR Understanding the nuances of the HDB property market in Singapore, especially the trend of million-dollar flats, requires a deep...
Read More
Subscribe to Jayson Ang’s Singapore Property Newsletter
All Blog Posts Buying Tips

Subscribe to Jayson Ang’s Singapore Property Newsletter

TLDR Jayson Ang's Singapore Property Newsletter offers valuable insights on real estate investments, market trends, and expert advice. The newsletters...
Read More
When a Property Seller Pulls Out of the Deal : What Now?
All Blog Posts Buying Tips

When a Property Seller Pulls Out of the Deal : What Now?

TLDR When a property deal is not yet formalized, sellers can withdraw without consequences. However, once an Option to Purchase...
Read More
Top 5 Most Common Red Flags To Watch Out For When Investing In Singapore Property
Mandarin Top 5

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

Investing in Singapore property has long been considered a lucrative and stable way to build wealth. However, like any investment,...
Read More
1 … 5 6 7 8 9 … 37

Compare Listings