Your search results

The Illusion of Waiting: Why Cooling Measures Might Not Guarantee Cheaper Properties in Singapore

Posted by Jayson Ang on July 29, 2026

| 0

TLDR

Cooling measures in Singapore’s property market don’t guarantee cheaper homes. While they aim to slow price growth, history shows each market peak rebounds higher, making “wait-and-see” strategies risky. Different measures affect segments unevenly—foreign buyer taxes hit luxury condos, while HDB loan curbs barely touch private markets. Developers face tight margins and limited room to cut prices, meaning new launches often rise despite interventions. Some measures even raise costs permanently, like ABSD. Ultimately, timing the market is perilous; buyers should focus on personal financial readiness, stability, and finding a property that meets their needs rather than waiting for government policies to lower prices.

Property cooling measures often elicit two distinct reactions: some buyers rush to secure a property, fearing increased unaffordability due to loan curbs or higher Additional Buyer’s Stamp Duty (ABSD). Others adopt a “wait-and-see” approach, hoping these measures will depress prices. This analysis addresses the latter group, explaining why lower prices are not always the outcome.

The Flawed Premise of “Wait-and-See”

Cooling measures are inherently designed to exert downward pressure on home prices. Thus, the intuitive response to wait for the market to cool before buying appears logical. However, real-world dynamics are far more complex. While some point to cases like Urban Vista, where buyers in 2013 (a property peak coinciding with the implementation of cooling measures) saw prices decline, this scenario isn’t universally applicable.

Risks of a “Wait-and-See” Strategy:

Prices Can Rebound Higher Than Before: Historical data shows that each property peak in Singapore (e.g., 1996, 2007, 2013) tends to surpass the previous one. A “wait-and-see” strategy becomes a perilous attempt to time the market. Even if prices dip post-cooling measure, identifying the market bottom is notoriously difficult. Buying after a dip, only to see prices fall further (as with Urban Vista from October 2013 to June 2014), can be painful. Conversely, missing the brief window of a downturn can lead to paying even more as the market rapidly ascends to its next peak. The HDB resale market’s trajectory post-Mortgage Servicing Ratio (MSR) in 2013 illustrates this; prices plummeted but then soared past 2013 levels within approximately three years after the pandemic. Attempting to time the market’s bottom is a high-risk proposition.
Varied Effects of Different Cooling Measures: Waiting for unspecified cooling measures is risky because their nature and impact are unpredictable. For instance, the April 2023 cooling measures imposed a substantial 60% ABSD on foreigners. However, this had minimal effect on mass-market condos in areas like Bedok or Jurong East, primarily targeting luxury properties. Similarly, the August 2024 measure, which reduced maximum HDB loan amounts, did not impact condo prices or private bank loan users. A typical Singaporean buyer looking for a mass-market condo would likely regret waiting for these specific measures, as average new launch prices rose from $2,185 psf in January 2023 to $2,475 psf in January 2025, demonstrating that recent cooling measures did not translate into lower prices for the average buyer. Even if a cooling measure exerts downward pressure, it might only slow price increases rather than cause an outright decline, especially in the resale market where financially stable sellers are less pressured to sell.
Limited Downward Flexibility for Developers: Developers have faced increasing pressures in recent years, leading to lukewarm interest in replenishing land banks, even after the last en-bloc craze ended in 2017. Their margins are already thin, and new regulations like GFA harmonization (which prevent charging for non-usable spaces like air-con ledges) further squeeze profitability. Regardless of cooling measures, developers may have very little room to lower prices further, given current land costs.
Cooling Measures Can Increase Your Costs: Some cooling measures, particularly those involving new taxes (like a hypothetical tax on properties above $1 million), would directly increase buyer costs. Since ABSD rates have historically never decreased, such taxes could become permanent. Even non-tax measures, such as tighter loan curbs, could hinder your ability to afford your desired property, leading to regret if you waited.

Prioritizing Personal Readiness Over Market Timing:

It is generally advisable not to attempt to time the market based on cooling measures. The decision to buy should primarily hinge on your personal financial situation: your readiness to make the initial payment, your ability to manage mortgage repayments, and your job security. If your income is unstable or mortgage payments would be a struggle, it is not an opportune time to buy, irrespective of cooling measures.

These financial considerations should be the primary determinants of when you buy. Additionally, for homeownership, factors like location, layout, amenities, and personal connection to an area are often irreplaceable. In the resale market, each unit possesses distinct characteristics. If you find a property that perfectly meets your needs, risking its loss by waiting for potential market changes or government policies in your favor is not recommended.

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 …

Mandarin Top 5

Top 5 Tips : How to Choose the Best Property Agent in Singapore – Insider Tips and Strategies!

Jayson Ang – September 30, 2024 –

Choosing the right property agent in Singapore can be a daunting task, especially with the plethora of options available. A...

Mandarin Top 5

Top 5 Reasons : Why Penthouses In Singapore Are Popular With Crazy Rich Asians

Jayson Ang – October 7, 2024 –

Singapore, a city-state known for its stunning skyline and luxurious lifestyle, has become a popular destination for the ultra-wealthy. Among...

All Blog Posts Opinion Selling Tips

When Should You Consider Lowering the Price of Your Property That Has Been on the Market for Months?

Jayson Ang – December 3, 2024 –

TLDR Selling a property can be challenging without the right price strategy. Adjust your asking price to attract more buyers...

Mandarin Top 5

Top 5 Scenic Drives in Singapore

Jayson Ang – June 4, 2024 –

Singapore, a small yet bustling city-state, is well-known for its impressive skyline, diverse culture, and delicious food. However, not many...

All Opinion

Reasons I Might Still Spend $1 Million On A 50-Year-Old HDB—Despite Everyone Claiming It’s A Poor Investment

Jayson Ang – March 30, 2026 –

TLDR Spending $1 million on a 50-year-old HDB flat in Singapore can be a rational choice for older buyers prioritizing...

Mandarin Top 5

Top 5 Street Food Markets in Singapore

Jayson Ang – September 8, 2024 –

Singapore, a melting pot of diverse cultures, offers an incredible array of street food that tantalizes the taste buds of...

Mandarin Top 5

The Top 5 Tax Considerations When Investing In Singapore Property

Jayson Ang – July 20, 2024 –

When investing in Singapore property, it is essential to be aware of the various tax implications and considerations. Here are...

All Buying Tips Opinion Selling Tips

Integrated Developments and Condo Values: A Look at Sengkang Grand Residences

Jayson Ang – March 6, 2026 –

TLDR The impact of the new integrated development, Sengkang Grand Residences, on nearby condo prices was studied by comparing it...

All Blog Posts

Singapore Property Swapper

Jayson Ang – December 7, 2022 –

https://www.youtube.com/watch?v=B1NTnjxDPy4 Jayson Ang, also known as the Singapore Property Swapper, is a certified Propnex agent and top 1% producer who...

All Buying Tips Opinion

Can You Make the Leap to a Condo Upgrade in 2024?

Jayson Ang – June 12, 2024 –

As the Chinese New Year festivities wind down, folks are once again on the prowl for new homes, and understandably,...

Mandarin Top 5

Is Singapore’s Property Market on the Verge of a Crash? Understanding the 5 Factors at Play

Jayson Ang – March 31, 2024 –

The Singapore property market has long been an attractive option for both local and international investors. However, as with any...

All Blog Posts Opinion

5 Reasons Why You Should Consider Hiring an Agent Instead of DIY-ing It

Jayson Ang – June 9, 2023 –

TLDR Understanding the complexities of the real estate market and transactions can be overwhelming. Enlisting the help of a real...

All Buying Tips

What Are The Key Factors That Contribute To Property Valuations And Why Are They So Crucial?

Jayson Ang – October 23, 2023 –

TLDR Understanding property valuations is crucial for both buyers and sellers in the real estate market. Property valuations involve two...

All Buying Tips Selling Tips

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

Jayson Ang – July 28, 2024 –

TLDR Understanding the nuances of the HDB property market in Singapore, especially the trend of million-dollar flats, requires a deep...

Mandarin Top 5

Top 5 Best Scenic Drives in Singapore

Jayson Ang – October 19, 2024 –

Singapore, a bustling city-state known for its modern architecture and vibrant culture, also offers some of the most picturesque driving...

All Buying Tips Opinion

The Integrated Living Experience: Benefits and Drawbacks of Condos Above an MRT

Jayson Ang – January 22, 2026 –

TLDR Integrated developments in Singapore combine residential units with commercial spaces and direct MRT access, offering convenience and car-free living....