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Pipeline of new BTO flats and private launches expected to moderate resale prices, while stabilising interest rates improve outlook for S-REIT investors.
By Khalil Adis
By Khalil Adis
View of downtown Singapore. Photo: Courtesy of Alesia Kozik from Pexels.
If you are planning to buy a property in 2026, market conditions may be turning increasingly favourable, as resale HDB and private home price growth is expected to moderate amid a surge in upcoming housing supply.
The government has been ramping up the supply of Built-to-Order (BTO) flats and private homes since 2025 in a bid to ease housing pressures across both the public and private markets.
In the HDB segment, authorities announced plans to launch about 19,500 new BTO flats in 2025 alone.
Meanwhile, data from the Urban Redevelopment Authority (URA) shows that the expansion in private housing supply is expected to deliver around 57,000 private residential units over the next few years, including Executive Condominiums (ECs), largely stemming from recent Government Land Sales (GLS) programmes.
Taken together, the growing supply pipeline is expected to gradually shift bargaining power toward buyers.
Opportunities also abound for investors in Singapore-listed real estate investment trusts (S-REITs), especially the office and retail sectors.
Flat buyers lured by new BTO launches
The government has been ramping up the supply of Built-to-Order (BTO) flats and private homes since 2025 in a bid to ease housing pressures across both the public and private markets.
In the HDB segment, authorities announced plans to launch about 19,500 new BTO flats in 2025 alone.
Meanwhile, data from the Urban Redevelopment Authority (URA) shows that the expansion in private housing supply is expected to deliver around 57,000 private residential units over the next few years, including Executive Condominiums (ECs), largely stemming from recent Government Land Sales (GLS) programmes.
Taken together, the growing supply pipeline is expected to gradually shift bargaining power toward buyers.
Opportunities also abound for investors in Singapore-listed real estate investment trusts (S-REITs), especially the office and retail sectors.
Flat buyers lured by new BTO launches
Artist’s impression of the first BTO project in Sembawang North launched in July 2025. Photo: HDB.
The HDB resale price index (RPI) for the fourth quarter of 2025 reached a record 203.6 points, remaining largely unchanged from 203.7 points in the previous quarter.
“While resale HDB prices grew by 2.9 per cent year-on-year in 2025, it was the slowest annual growth since 2019,” said Wong Xian Yang, head of research, Singapore & Southeast Asia, Cushman & Wakefield.
Property agents say the resale HDB market slowed considerably in 2025 compared with the previous year as buyer urgency eased.
“Previously, a single listing could attract up to ten buyers vying for a resale HDB flat, especially one sold without any extension. Usually they would be sold within a weekend. In the current market, you are lucky to get one or two viewers, and even then it may take time to sell the unit,” said Hakim Halim, associate group director at PropNex.
The slowdown could extend into 2026 as new supply enters the market.
Between 2025 and 2027, HDB plans to launch about 55,000 flats, up from its earlier commitment of 50,000 flats, to meet housing demand.
As more buyers divert their attention toward new BTO launches, resale price pressures are expected to ease further, reinforcing expectations of a more buyer-friendly market.
Million dollar HDB flats still active
“While resale HDB prices grew by 2.9 per cent year-on-year in 2025, it was the slowest annual growth since 2019,” said Wong Xian Yang, head of research, Singapore & Southeast Asia, Cushman & Wakefield.
Property agents say the resale HDB market slowed considerably in 2025 compared with the previous year as buyer urgency eased.
“Previously, a single listing could attract up to ten buyers vying for a resale HDB flat, especially one sold without any extension. Usually they would be sold within a weekend. In the current market, you are lucky to get one or two viewers, and even then it may take time to sell the unit,” said Hakim Halim, associate group director at PropNex.
The slowdown could extend into 2026 as new supply enters the market.
Between 2025 and 2027, HDB plans to launch about 55,000 flats, up from its earlier commitment of 50,000 flats, to meet housing demand.
As more buyers divert their attention toward new BTO launches, resale price pressures are expected to ease further, reinforcing expectations of a more buyer-friendly market.
Million dollar HDB flats still active
HDB flats at Dawson Road. Photo: Khalil Adis Consultancy.
Despite signs of moderation, million-dollar resale HDB transactions remained notable in 2025.
According to data from HDB, a total of 1,510 such flats changed hands during the year, including 302 units in Toa Payoh alone.
Toa Payoh recorded the highest number of million-dollar four-room resale flats (195 units), followed by Queenstown (114 units) and Bukit Merah (110 units).
For five-room flats, Bukit Merah led with 106 transactions, followed by Toa Payoh (93 units) and Queenstown (53 units).
Serangoon recorded the most executive flats sold (44 units), followed by Bishan and Hougang (38 units each), Woodlands (29 units) and Pasir Ris (20 units).
Only two three-room million-dollar resale flats were sold island-wide, both in the Kallang/Whampoa area.
Three Multi-Generation resale flats were transacted, with one unit each in Bishan, Central and Tampines.
Softening private property market as buyers gravitate to new launches
According to data from HDB, a total of 1,510 such flats changed hands during the year, including 302 units in Toa Payoh alone.
Toa Payoh recorded the highest number of million-dollar four-room resale flats (195 units), followed by Queenstown (114 units) and Bukit Merah (110 units).
For five-room flats, Bukit Merah led with 106 transactions, followed by Toa Payoh (93 units) and Queenstown (53 units).
Serangoon recorded the most executive flats sold (44 units), followed by Bishan and Hougang (38 units each), Woodlands (29 units) and Pasir Ris (20 units).
Only two three-room million-dollar resale flats were sold island-wide, both in the Kallang/Whampoa area.
Three Multi-Generation resale flats were transacted, with one unit each in Bishan, Central and Tampines.
Softening private property market as buyers gravitate to new launches
Skye at Holland. Photo: Holly Development Pte Ltd.
The private residential resale market also showed signs of moderation in 2025 as buyers remained cautious.
URA data showed that the private property price index rose 0.6 per cent quarter-on-quarter in the fourth quarter of 2025, compared with a 3 per cent increase in the previous quarter.
For the full year, prices rose 3.3 per cent, marking a slower pace of growth.
“Private residential prices rose 0.6 per cent quarter-on-quarter in the fourth quarter of 2025, or the fifth straight quarter of increase. Full year 2025 growth was 3.3 per cent year-on-year, moderating from 3.9 per cent year-on-year growth in 2024, or the lowest pace of annual increase since the pandemic year of 2020, suggesting overall buyers’ caution,” said Wong.
Sales volumes also declined.
“Overall private residential sales volume fell by 9.5 per cent quarter-on-quarter or 9.9 per cent year-on-year to 6,699 units in the fourth quarter of 2025. The decline in overall sales volume was driven by the new sales market, which fell by 10.6 per cent quarter-on-quarter to 2,940 units due to fewer new launches in the fourth quarter of 2025,” said Wong.
There were six new launches in the fourth quarter of 2025 (2,766 units), compared with nine launches (4,146 units) in the third quarter.
Resale transactions fell 9.1 per cent quarter-on-quarter to 3,529 units, while sub-sales declined 2.1 per cent to 230 units.
However, selected new launches continued to see strong take-up rates.
“The robust demand at new launches powered developers’ sales to an 11-month high in October,” said Kelvin Fong, CEO of PropNex.
Projects such as Skye at Holland, Penrith, Faber Residence and Zyon Grand recorded strong launch-weekend sales.
Prime Core Central Region (CCR) launches also saw their strongest monthly sales since 2007, driven largely by Skye at Holland.
With 1,510 million-dollar HDB flats transacted in 2025, analysts say upgrader demand into private housing is likely to persist.
“Barring new cooling measures, we are cautiously optimistic that private residential prices could grow by 2.0 to 4. per cent year-on-year in 2026 supported by low borrowing costs, increasing land prices and resilient buyer confidence, underpinned by still-low unemployment rates. HDB upgrader demand is still expected to persist, though overall momentum could slow.” Wong said.
PropNex echoed this view.
“With moderating price growth and low interest rates, we believe there is a window of opportunity in 2026 for prospective buyers, including HDB upgraders,” Fong said.
S-REITs outlook improving amid stabilising rates and stronger fundamentals
URA data showed that the private property price index rose 0.6 per cent quarter-on-quarter in the fourth quarter of 2025, compared with a 3 per cent increase in the previous quarter.
For the full year, prices rose 3.3 per cent, marking a slower pace of growth.
“Private residential prices rose 0.6 per cent quarter-on-quarter in the fourth quarter of 2025, or the fifth straight quarter of increase. Full year 2025 growth was 3.3 per cent year-on-year, moderating from 3.9 per cent year-on-year growth in 2024, or the lowest pace of annual increase since the pandemic year of 2020, suggesting overall buyers’ caution,” said Wong.
Sales volumes also declined.
“Overall private residential sales volume fell by 9.5 per cent quarter-on-quarter or 9.9 per cent year-on-year to 6,699 units in the fourth quarter of 2025. The decline in overall sales volume was driven by the new sales market, which fell by 10.6 per cent quarter-on-quarter to 2,940 units due to fewer new launches in the fourth quarter of 2025,” said Wong.
There were six new launches in the fourth quarter of 2025 (2,766 units), compared with nine launches (4,146 units) in the third quarter.
Resale transactions fell 9.1 per cent quarter-on-quarter to 3,529 units, while sub-sales declined 2.1 per cent to 230 units.
However, selected new launches continued to see strong take-up rates.
“The robust demand at new launches powered developers’ sales to an 11-month high in October,” said Kelvin Fong, CEO of PropNex.
Projects such as Skye at Holland, Penrith, Faber Residence and Zyon Grand recorded strong launch-weekend sales.
Prime Core Central Region (CCR) launches also saw their strongest monthly sales since 2007, driven largely by Skye at Holland.
With 1,510 million-dollar HDB flats transacted in 2025, analysts say upgrader demand into private housing is likely to persist.
“Barring new cooling measures, we are cautiously optimistic that private residential prices could grow by 2.0 to 4. per cent year-on-year in 2026 supported by low borrowing costs, increasing land prices and resilient buyer confidence, underpinned by still-low unemployment rates. HDB upgrader demand is still expected to persist, though overall momentum could slow.” Wong said.
PropNex echoed this view.
“With moderating price growth and low interest rates, we believe there is a window of opportunity in 2026 for prospective buyers, including HDB upgraders,” Fong said.
S-REITs outlook improving amid stabilising rates and stronger fundamentals
Office and retail space at Changi Business Park. Photo: Khalil Adis Consultancy.
Market watchers say Singapore-listed real estate investment trusts (S-REITs) are entering a more stable phase after several years of pressure from rising global interest rates and higher financing costs.
“Lower interest rates matter for REITs because they gradually reduce financing costs as debt is refinanced and make REIT yields more attractive relative to other low-risk investment options such as Treasury Bills,” said Nupur Joshi, CEO of the REIT Association of Singapore (REITAS).
Against this backdrop, S-REITs are expected to benefit from improved refinancing visibility and more predictable funding expenses.
Analyst sentiment has also turned more positive.
“Several research houses now expect the S-REIT sector’s distribution per unit (DPU) growth to resume in 2026, supported by steadier interest rates and resilient asset fundamentals,” Joshi added.
Singapore’s reputation as a well-regulated and transparent market for listed real estate vehicles continues to attract global institutional capital seeking stable, income-generating exposure in Asia.
Market initiatives aimed at deepening equity participation and liquidity could further support listed trusts, particularly those outside the largest benchmark indices.
“The Singapore equity market has also been in a bit of a tear due to international investors seeing Singapore as a safe and well-governed market, resulting in global capital flowing into Singapore, alongside stock-market reforms initiated under MAS’ Equity Market Development Programme. This benefits Singapore-listed REITs,” Joshi said.
Looking ahead, the office and retail segments are showing promising signs, although prospects remain uneven across property types.
“The Singapore office sector is expected to do well due to strong demand and limited supply. Singapore retail scene is also improving. For REITs with overseas properties, it will depend on the asset class and geography, but overall industrial, logistics and data centre REITs are expected to do well due to structural tailwinds,” Joshi said.
“Lower interest rates matter for REITs because they gradually reduce financing costs as debt is refinanced and make REIT yields more attractive relative to other low-risk investment options such as Treasury Bills,” said Nupur Joshi, CEO of the REIT Association of Singapore (REITAS).
Against this backdrop, S-REITs are expected to benefit from improved refinancing visibility and more predictable funding expenses.
Analyst sentiment has also turned more positive.
“Several research houses now expect the S-REIT sector’s distribution per unit (DPU) growth to resume in 2026, supported by steadier interest rates and resilient asset fundamentals,” Joshi added.
Singapore’s reputation as a well-regulated and transparent market for listed real estate vehicles continues to attract global institutional capital seeking stable, income-generating exposure in Asia.
Market initiatives aimed at deepening equity participation and liquidity could further support listed trusts, particularly those outside the largest benchmark indices.
“The Singapore equity market has also been in a bit of a tear due to international investors seeing Singapore as a safe and well-governed market, resulting in global capital flowing into Singapore, alongside stock-market reforms initiated under MAS’ Equity Market Development Programme. This benefits Singapore-listed REITs,” Joshi said.
Looking ahead, the office and retail segments are showing promising signs, although prospects remain uneven across property types.
“The Singapore office sector is expected to do well due to strong demand and limited supply. Singapore retail scene is also improving. For REITs with overseas properties, it will depend on the asset class and geography, but overall industrial, logistics and data centre REITs are expected to do well due to structural tailwinds,” Joshi said.
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As Singapore gears up for its general election, the influence of young voters on housing policies is becoming increasingly significant.
By Khalil Adis
By Khalil Adis
Young Singaporeans walking along Orchard Road. Photo: Khalil Adis Consultancy.
Sam (not his real name) and his wife had been waiting for years to buy a flat.
Married to a permanent resident, the couple had to wait three years before they could even begin their home-buying journey.
Like many young Singaporeans that I had met recently, affordability was a major concern.
The 4-room flats in their preferred areas were priced between $500,000 and $600,000, leaving them wondering if homeownership was financially realistic.
However, after receiving their HDB Flat Eligibility (HFE) letter, their dream began to feel within reach.
Turning dreams into reality
Married to a permanent resident, the couple had to wait three years before they could even begin their home-buying journey.
Like many young Singaporeans that I had met recently, affordability was a major concern.
The 4-room flats in their preferred areas were priced between $500,000 and $600,000, leaving them wondering if homeownership was financially realistic.
However, after receiving their HDB Flat Eligibility (HFE) letter, their dream began to feel within reach.
Turning dreams into reality
Lower Seletar Reservoir Park Connector. Photo: Khalil Adis Consultancy.
The good news? They were eligible for a total grant of $150,000—comprising a CPF Housing Grant of $80,000, an Enhanced CPF Housing Grant of $50,000, and a Proximity Housing Grant of $20,000.
With their finances secured, their maximum loan was approved for the upper $300,000 range, giving them a strong foundation for their home purchase.
Armed with their budget, the couple began house hunting.
Their requirements were clear.
Firstly, the unit needs to have a flexible layout to accommodate their future family needs.
Secondly, it has to be within 4km from Sam's parents.
Thirdly, it has to be within access to park connectors and green spaces - an important factor for their growing child.
After two weeks of viewings, they finally secured their dream home in northern Singapore.
To their relief, the unit did not come with any cash-over-valuation (COV), making it even more affordable.
Housing aspirations are evolving
With their finances secured, their maximum loan was approved for the upper $300,000 range, giving them a strong foundation for their home purchase.
Armed with their budget, the couple began house hunting.
Their requirements were clear.
Firstly, the unit needs to have a flexible layout to accommodate their future family needs.
Secondly, it has to be within 4km from Sam's parents.
Thirdly, it has to be within access to park connectors and green spaces - an important factor for their growing child.
After two weeks of viewings, they finally secured their dream home in northern Singapore.
To their relief, the unit did not come with any cash-over-valuation (COV), making it even more affordable.
Housing aspirations are evolving
Scaled model of eco-friendly and sustainable HDB estates. Photo: Khalil Adis Consultancy.
Sam’s journey reflects a growing trend among young Singaporeans—housing affordability remains a top priority but expectations are evolving.
While previous generations also focused on affordability, here are some of today’s additional considerations I noticed young buyers have:
Rising cost of living
With inflation driving up prices, many young Singaporeans are rethinking long-term financial commitments.
As a result, co-living spaces have gained popularity among young professionals.
The flexibility of renting appeals to those who prefer mobility, much like digital nomads..
The gig economy
Unlike previous generations, full-time employment is no longer seen as the only path to stability.
Many now prioritise work-life balance and mental health which affect their housing choices (and how much loan they can get should they decide to switch to freelancing).
Sustainability
There’s a growing emphasis on green developments with many young buyers actively seeking eco-friendly features.
So far, the government has kept pace with these changes, introducing Climate Vouchers, rolling out solar panels in HDB estates and prioritising sustainable town planning.
I would also say, young Singaporeans are also health conscious leading active lifestyles.
This explains why some of them prefer living near to gyms or park connectors.
Shifting family patterns
At the same time, marriage and family patterns are shifting.
Rising living costs and career aspirations are leading many to delay marriage and homeownership.
According to data from the Department of Statistics Singapore (2024), the number of single Singaporeans in their 30s has increased by 13 per cent over the last decade
Housing challenges for singles
While previous generations also focused on affordability, here are some of today’s additional considerations I noticed young buyers have:
Rising cost of living
With inflation driving up prices, many young Singaporeans are rethinking long-term financial commitments.
As a result, co-living spaces have gained popularity among young professionals.
The flexibility of renting appeals to those who prefer mobility, much like digital nomads..
The gig economy
Unlike previous generations, full-time employment is no longer seen as the only path to stability.
Many now prioritise work-life balance and mental health which affect their housing choices (and how much loan they can get should they decide to switch to freelancing).
Sustainability
There’s a growing emphasis on green developments with many young buyers actively seeking eco-friendly features.
So far, the government has kept pace with these changes, introducing Climate Vouchers, rolling out solar panels in HDB estates and prioritising sustainable town planning.
I would also say, young Singaporeans are also health conscious leading active lifestyles.
This explains why some of them prefer living near to gyms or park connectors.
Shifting family patterns
At the same time, marriage and family patterns are shifting.
Rising living costs and career aspirations are leading many to delay marriage and homeownership.
According to data from the Department of Statistics Singapore (2024), the number of single Singaporeans in their 30s has increased by 13 per cent over the last decade
Housing challenges for singles
Commuters at Punggol Bus Interchange. Photo: Khalil Adis Consultancy.
The Singapore Consumer Price Index (CPI) released in January 2025 reported year-on-year increases in transport (3.1 per cent), food (1.5 per cent), health (1.5 per cent), and housing & utilities (1.4 per cent).
With these rising costs, some singles are finding it difficult to secure housing.
A friend of mine, for instance, has temporarily relocated to Malaysia while waiting for clearer housing policies.
The government has taken steps to address this issue—since June 2024, singles can now purchase HDB flats in all locations (previously, they were limited to non-mature estates).
However, some still feel that they should be allowed to purchase 3-room flats instead of being restricted to 2-room units.
For low-income earners and freelancers, this limitation makes it harder to afford homes in the resale market.
If you are single and considering homeownership, I would urge you to explore the many available grants.
You can then subsequently upgrade and consider different housing types once you have met your Minimum Occupation Period (MOP).
As we have already seen, the property market is ever evolving and policies may continue to shift post-election.
Government’s response and policy adjustments
With these rising costs, some singles are finding it difficult to secure housing.
A friend of mine, for instance, has temporarily relocated to Malaysia while waiting for clearer housing policies.
The government has taken steps to address this issue—since June 2024, singles can now purchase HDB flats in all locations (previously, they were limited to non-mature estates).
However, some still feel that they should be allowed to purchase 3-room flats instead of being restricted to 2-room units.
For low-income earners and freelancers, this limitation makes it harder to afford homes in the resale market.
If you are single and considering homeownership, I would urge you to explore the many available grants.
You can then subsequently upgrade and consider different housing types once you have met your Minimum Occupation Period (MOP).
As we have already seen, the property market is ever evolving and policies may continue to shift post-election.
Government’s response and policy adjustments
Screengrab of a car-lite estate in Bayshore courtesy of HDB.
While bread-and-butter issues will dominate the election, young Singaporeans will prioritise policies that impact their financial well-being and long-term security.
To address these concerns, the government has introduced various measures.
Firstly, there is greater transparency in pricing and shorter waiting times for BTO flats.
Secondly, since February 14, 2023, the CPF Housing Grants has been increased for first-time resale flat buyers—by up to $30,000. This makes homeownership an even more attainable dream.
Thirdly, as of March 2025, the government had announced an expanded Fresh Start Housing Scheme where first-timer families can now apply. Previously, it was limited to second-timers only.
Last but not least, sustainable housing initiatives such as green townships, car-lite communities (such as Tengah and Bayshore) and recycling rubbish chutes as well as solar panel are now being rolled out in BTO flats.
For those seeking rental options, the Public Rental Scheme (PRS) provides affordable housing for lower-income Singaporeans.
However, for professionals who prefer co-living spaces, the Single Room Shared Facilities (SRSF) Pilot remains one of the few available government-backed options.
As we can see from the above examples, the government has consistently adapted housing policies to meet public demand.
However, balancing affordability and long-term sustainability remains a challenge.
With Singapore’s strong emphasis on homeownership, I would encourage young Singaporeans to consider getting their first step into the property market.
Ultimately, owning your home versus long-term rental will be a more sustainable option.
Conclusion: The future of housing policies in Singapore
To address these concerns, the government has introduced various measures.
Firstly, there is greater transparency in pricing and shorter waiting times for BTO flats.
Secondly, since February 14, 2023, the CPF Housing Grants has been increased for first-time resale flat buyers—by up to $30,000. This makes homeownership an even more attainable dream.
Thirdly, as of March 2025, the government had announced an expanded Fresh Start Housing Scheme where first-timer families can now apply. Previously, it was limited to second-timers only.
Last but not least, sustainable housing initiatives such as green townships, car-lite communities (such as Tengah and Bayshore) and recycling rubbish chutes as well as solar panel are now being rolled out in BTO flats.
For those seeking rental options, the Public Rental Scheme (PRS) provides affordable housing for lower-income Singaporeans.
However, for professionals who prefer co-living spaces, the Single Room Shared Facilities (SRSF) Pilot remains one of the few available government-backed options.
As we can see from the above examples, the government has consistently adapted housing policies to meet public demand.
However, balancing affordability and long-term sustainability remains a challenge.
With Singapore’s strong emphasis on homeownership, I would encourage young Singaporeans to consider getting their first step into the property market.
Ultimately, owning your home versus long-term rental will be a more sustainable option.
Conclusion: The future of housing policies in Singapore
An HDB estate in Punggol. Photo: Khalil Adis Consultancy.
The growing political influence of young voters is undeniable, particularly in shaping housing policies.
As their preferences and expectations evolve, policymakers must respond with innovative solutions to ensure that housing remains accessible, affordable and aligned with modern lifestyles
Having said that, Singapore remains one of the few countries where our government continues to offer assistance to make homeownership attainable.
As a Singaporean, I am proud to say that Singapore has one of the highest homeownership rates in the world at more than 90 per cent, thanks to careful long-term planning.
However, as society evolves, housing policies will also need to keep pace.
As their preferences and expectations evolve, policymakers must respond with innovative solutions to ensure that housing remains accessible, affordable and aligned with modern lifestyles
Having said that, Singapore remains one of the few countries where our government continues to offer assistance to make homeownership attainable.
As a Singaporean, I am proud to say that Singapore has one of the highest homeownership rates in the world at more than 90 per cent, thanks to careful long-term planning.
However, as society evolves, housing policies will also need to keep pace.
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The government is expected to call for a general election in 2025, which may see further measures to stabilise the housing market.
By Khalil Adis
By Khalil Adis
View of Singapore's downtown CBD area at night. Photo by Pexels courtesy of Jahoo Clouseau.
Singapore’s property market in 2024 witnessed notable developments, including record-breaking prices and a surge in private home sales. As the country looks ahead to 2025, which is widely expected to be an election year, further government measures to stabilise the housing market are anticipated.
Record high index in the HDB resale market
Punggol is among the popular HDB estates among buyers. Photo: Khalil Adis Consultancy.
The Housing & Development Board (HDB) resale market reached new heights in 2024.
The HDB Resale Price Index (RPI) for the third quarter of 2024 increased by 2.7 per cent from the previous quarter, hitting 192.9 points—a record high.
To address growing demand, HDB had launched 21,225 new flats in 2024.
These included 19,637 Build-To-Order (BTO) flats across various estates and 1,588 units through the Sale of Balance Flats (SBF) exercise in February.
These launches are part of HDB’s commitment to providing 100,000 flats between 2021 and 2025, ensuring a steady supply of affordable housing for Singaporeans.
Year-end surge in private home sales
The HDB Resale Price Index (RPI) for the third quarter of 2024 increased by 2.7 per cent from the previous quarter, hitting 192.9 points—a record high.
To address growing demand, HDB had launched 21,225 new flats in 2024.
These included 19,637 Build-To-Order (BTO) flats across various estates and 1,588 units through the Sale of Balance Flats (SBF) exercise in February.
These launches are part of HDB’s commitment to providing 100,000 flats between 2021 and 2025, ensuring a steady supply of affordable housing for Singaporeans.
Year-end surge in private home sales
Clarke Quay in Singapore. Photo: Khalil Adis Consultancy.
The private property market also saw robust activity, especially in November 2024.
Developers sold 2,557 new private homes during the month, the highest monthly figure since March 2013.
Top-selling projects in November 2024
Developers sold 2,557 new private homes during the month, the highest monthly figure since March 2013.
Top-selling projects in November 2024
Chuan Park by Kingsford Development Pte Ltd.
Chuan Park (Outside Central Region, OCR)
Chuan Park sold 721 units at a median price of $2,586 per sq ft, a record launch price for the OCR.
This accounted for 81 per cent of OCR’s developer sales in November.
Emerald of Katong (Rest of Central Region, RCR):
Chuan Park sold 721 units at a median price of $2,586 per sq ft, a record launch price for the OCR.
This accounted for 81 per cent of OCR’s developer sales in November.
Emerald of Katong (Rest of Central Region, RCR):
An artist impression of Emerald of Katong once the development is completed. Photo courtesy of Sim Lian Group.
Emerald of Katong sold 840 units at a median price of $2,627 per sq ft, leading sales in the RCR.
Other notable projects that did well included Nava Grove (382 units sold at $2,445 per sq ft), and Hillock Green: (45 units sold at $2,278 per sq ft).
Last but not least, Union Square Residences and The Continuum enjoyed a combined sales of over 230 units.
Impact on private resale market
Other notable projects that did well included Nava Grove (382 units sold at $2,445 per sq ft), and Hillock Green: (45 units sold at $2,278 per sq ft).
Last but not least, Union Square Residences and The Continuum enjoyed a combined sales of over 230 units.
Impact on private resale market
Skies Miltonia in Yishun. Photo: Khalil Adis Consultancy.
While new launches thrived, the resale private property market saw a slight dip.
The Private Property Index (PPI) for resale homes declined by 0.7 per cent in the third quarter of 2024, likely due to increased supply from new projects.
2025: Housing affordability in focus
The Private Property Index (PPI) for resale homes declined by 0.7 per cent in the third quarter of 2024, likely due to increased supply from new projects.
2025: Housing affordability in focus
Scaled model of upcoming BTO launches in Singapore at HDB Hub. Photo: Khalil Adis Consultancy,
As housing affordability remains a key concern for Singaporeans, the government is expected to implement measures to address it in 2025.
These may include ramping up the supply of new homes and introducing further cooling measures, if necessary.
HDB
These may include ramping up the supply of new homes and introducing further cooling measures, if necessary.
HDB
Screengrab of an upcoming BTO launch in Queenstown courtesy of HDB.
Approximately 5,000 Built-To-Order (BTO) flats will be launched in early 2025 in Kallang/Whampoa, Queenstown, Woodlands, and Yishun.
The February 2025 Sale of Balance Flats (SBF) exercise will be the largest ever, with over 5,500 flats available.
Around 40 per cent of these will be move-in-ready, while the remainder will be progressively completed between 2025 and 2028.
Private
The February 2025 Sale of Balance Flats (SBF) exercise will be the largest ever, with over 5,500 flats available.
Around 40 per cent of these will be move-in-ready, while the remainder will be progressively completed between 2025 and 2028.
Private
Screengrab showing an empty plot of land at Media Circle at Bouna Vista courtesy of Google Maps.
November 2024 Government Land Sales (GLS) Programme launches
The URA released three residential sites at Media Circle (Parcel A & B) and Bayshore Road under the second half of 2024 GLS Programme.
Media Circle (Parcel A & B) is projected to yield approximately 325 and 500 residential units, respectively.
Bayshore Road is estimated to accommodate 515 residential units.
These three sites are part of the 5,050 residential units made available under the Confirmed List of the second half of 2024 GLS programme, aimed at catering to housing demand and ensuring market stability.
December 2024 Government Land Sales (GLS) Programme launches
The URA released three residential sites at Media Circle (Parcel A & B) and Bayshore Road under the second half of 2024 GLS Programme.
Media Circle (Parcel A & B) is projected to yield approximately 325 and 500 residential units, respectively.
Bayshore Road is estimated to accommodate 515 residential units.
These three sites are part of the 5,050 residential units made available under the Confirmed List of the second half of 2024 GLS programme, aimed at catering to housing demand and ensuring market stability.
December 2024 Government Land Sales (GLS) Programme launches
Screengrab of an empty land parcel at Holland Link courtesy of Google Maps.
In December, the URA announced four additional residential sites at Holland Link, Holland Plain, Chuan Grove and River Valley Green (Parcel C) as part of the second half of 2024 GLS Programme:
Holland Link and Chuan Grove, listed under the Confirmed List, are expected to yield 230 and 555 residential units, respectively.
Holland Plain and River Valley Green (Parcel C), available for application under the Reserve List, could potentially yield 280 and 470 residential units, respectively.
Together, these sites further contribute to the government's commitment to releasing 5,050 residential units under the Confirmed List for the second half 2024 GLS programme to balance housing demand and market stability.
First half of 2025 Government Land Sales (GLS) Programme launches
Holland Link and Chuan Grove, listed under the Confirmed List, are expected to yield 230 and 555 residential units, respectively.
Holland Plain and River Valley Green (Parcel C), available for application under the Reserve List, could potentially yield 280 and 470 residential units, respectively.
Together, these sites further contribute to the government's commitment to releasing 5,050 residential units under the Confirmed List for the second half 2024 GLS programme to balance housing demand and market stability.
First half of 2025 Government Land Sales (GLS) Programme launches
Lakside Drive is located strategically next to Lakeside MRT station. Screengrab courtesy of Google Maps.
Also in December, the URA announced ten Confirmed List sites and nine Reserve List sites for the first half of 2025 which can yield about 8,505 private residential units, 242,900 sq m gross floor area (GFA) of commercial space and 530 hotel rooms.
The Confirmed List will comprise nine private residential sites (including three Executive Condominium sites) and one commercial and residential site which can collectively yield about 5,030 private residential units (including 980 EC units) and 43,000 sqm GFA of commercial space.
The location of the six non-EC sites include Lakeside Drive, Dunearn Road, Chuan Grove, Upper Thomson Road (Parcel A), Dorset Road and Telok Blangah Road.
Meanwhile, the EC sites are located in the OCR, namely, Senja Close, Woodlands Drive 17 and Sembawang Road.
The commercial and residential site is located in Hougang Central.
In total, the Confirmed List can yield 5,030 private residential units and 43,000 sq m GFA of commercial space.
What they mean for buyers
The Confirmed List will comprise nine private residential sites (including three Executive Condominium sites) and one commercial and residential site which can collectively yield about 5,030 private residential units (including 980 EC units) and 43,000 sqm GFA of commercial space.
The location of the six non-EC sites include Lakeside Drive, Dunearn Road, Chuan Grove, Upper Thomson Road (Parcel A), Dorset Road and Telok Blangah Road.
Meanwhile, the EC sites are located in the OCR, namely, Senja Close, Woodlands Drive 17 and Sembawang Road.
The commercial and residential site is located in Hougang Central.
In total, the Confirmed List can yield 5,030 private residential units and 43,000 sq m GFA of commercial space.
What they mean for buyers
An HDB estate in Singapore. Photo by Pexels courtesy of Alix Lee.
The government appears to be carefully calibrating housing supply in response to prevailing economic conditions and property market trends.
The increased housing supply in both the HDB and private property markets is expected to help keep resale prices sustainable and aligned with wage growth, particularly benefiting first-time homebuyers.
Summary
The increased housing supply in both the HDB and private property markets is expected to help keep resale prices sustainable and aligned with wage growth, particularly benefiting first-time homebuyers.
Summary
Upcoming BTO projects in Yishun Avenue 1. Photo: Khalil Adis Consultancy.
Looking ahead, buyers can look forward to a wide range of options in both new BTO flats and condominium launches, catering to different income levels.
For HDB upgraders, upcoming condominium projects in suburban (OCR) and central (RCR) areas, such as Lakeside Drive, Dunearn Road, Chuan Grove, Upper Thomson Road (Parcel A), Dorset Road, and Telok Blangah Road, offer attractive opportunities to make their next move.
For HDB upgraders, upcoming condominium projects in suburban (OCR) and central (RCR) areas, such as Lakeside Drive, Dunearn Road, Chuan Grove, Upper Thomson Road (Parcel A), Dorset Road, and Telok Blangah Road, offer attractive opportunities to make their next move.
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The HDB, private property and rental markets will see price stabilisation in 2024 favouring buyers and tenants.
By Khalil Adis
By Khalil Adis
Aerial view of Gardens by the Bay and Marina Barrage in Singapore. Photo: Pexels courtesy of Ingo Joseph.
If 2023 saw the HDB and private resale markets reaching record highs before subduing, then 2024 will likely see a further price correction arising from the property cooling measures, high-interest rates and upcoming supply.
Likewise, the red-hot rental market will see further signs of stabilisation in the upcoming year.
HDB resale market
Likewise, the red-hot rental market will see further signs of stabilisation in the upcoming year.
HDB resale market
HDB flats in Punggol. Photo: Khalil Adis Consultancy.
The HDB Resale Price Index (RPI) reached a record high in the third quarter of 2023 at 178.5 points.
According to HDB’s flash estimate, the RPI for the fourth quarter of 2023 is at 180.2 points which is an increase of 1.0 per cent over that in the third quarter.
A total of 24,447 flats were offered by HDB in 2023 comprising 22,780 Build-To-Order (BTO) flats and a further 1,500 and 167 flats offered under the Sale of Balance Flats (SBF) exercise and open booking of flats respectively.
This new flat supply will likely divert buyers away from the resale market which leads to a corresponding dip in demand in both the resale and rental markets.
As demand for resale HDB flats and rental eases, the RPI will likely correct itself to a more sustainable level.
Private property market
According to HDB’s flash estimate, the RPI for the fourth quarter of 2023 is at 180.2 points which is an increase of 1.0 per cent over that in the third quarter.
A total of 24,447 flats were offered by HDB in 2023 comprising 22,780 Build-To-Order (BTO) flats and a further 1,500 and 167 flats offered under the Sale of Balance Flats (SBF) exercise and open booking of flats respectively.
This new flat supply will likely divert buyers away from the resale market which leads to a corresponding dip in demand in both the resale and rental markets.
As demand for resale HDB flats and rental eases, the RPI will likely correct itself to a more sustainable level.
Private property market
Skies Miltonia in Yishun located in the Rest of Central Region (RCR). Photo: Khalil Adis Consultancy.
The private property market also witnessed the Private Property Index (PPI) climbing to a record high of 196.0 points in the third quarter of 2023.
Meanwhile, the Urban Redevelopment Authority’s flash estimate showed that the PPI increased by 2.7 per cent on a quarter-on-quarter basis in the fourth quarter of 2023, to reach 201.3 points.
This brings the price gain for the whole of 2023 to 6.7 points.
The property cooling measures implemented in 2023 also affected sales volume as the government increased the Additional Buyer’s Stamp Duty (ABSD) and imposed a 15-month wait-out period for private property owners downgrading to HDB flats.
Data from URA showed that sales transaction volume fell by about 27 per cent on a quarter-on-quarter basis for the fourth quarter of 2023.
For the whole of 2023, sale transaction volume fell by about 15 per cent compared to 2022. This was the lowest annual sale transaction volume since 2016.
Correspondingly, the increase in ABSD for foreigners from 30 per cent to 60 per cent appeared to impact prime areas the most.
According to URA’s data, non-landed private properties in the prime areas were the most affected while those that are located in the Outside Central Region (OCR) were the least impacted.
For example, the PPI for properties located in the Core Central Region (CCR) remained somewhat flat with a slight dip noted when the cooling measures were announced before rebounding to slightly below the 150-point level.
Meanwhile, those that are located in the RCR saw the index strengthening considerably from 2022 to 2023.
This implies that this particular segment had remained somewhat resilient despite the property cooling measures.
One of the reasons could be that the RCR is relatively affordable making it popular among first-time local private property buyers who will not be impacted by the ABSD.
Government ramping up supply in private and HDB markets
Meanwhile, the Urban Redevelopment Authority’s flash estimate showed that the PPI increased by 2.7 per cent on a quarter-on-quarter basis in the fourth quarter of 2023, to reach 201.3 points.
This brings the price gain for the whole of 2023 to 6.7 points.
The property cooling measures implemented in 2023 also affected sales volume as the government increased the Additional Buyer’s Stamp Duty (ABSD) and imposed a 15-month wait-out period for private property owners downgrading to HDB flats.
Data from URA showed that sales transaction volume fell by about 27 per cent on a quarter-on-quarter basis for the fourth quarter of 2023.
For the whole of 2023, sale transaction volume fell by about 15 per cent compared to 2022. This was the lowest annual sale transaction volume since 2016.
Correspondingly, the increase in ABSD for foreigners from 30 per cent to 60 per cent appeared to impact prime areas the most.
According to URA’s data, non-landed private properties in the prime areas were the most affected while those that are located in the Outside Central Region (OCR) were the least impacted.
For example, the PPI for properties located in the Core Central Region (CCR) remained somewhat flat with a slight dip noted when the cooling measures were announced before rebounding to slightly below the 150-point level.
Meanwhile, those that are located in the RCR saw the index strengthening considerably from 2022 to 2023.
This implies that this particular segment had remained somewhat resilient despite the property cooling measures.
One of the reasons could be that the RCR is relatively affordable making it popular among first-time local private property buyers who will not be impacted by the ABSD.
Government ramping up supply in private and HDB markets
Construction of Built-to-Order (BTO) HDB flats in Punggol. Photo: Khalil Adis Consultancy.
To further cool the property market, the government is ramping up supply of 5,160 units in the second half of 2023.
This will bring the total pipeline supply of private housing to about 59,100 units.
According to the URA, of this, 41,900 units will comprise those with planning approval and 17,200 units from Government Land Sale (GLS) sites and awarded en-bloc sites that have not been granted planning approval yet.
Overall, a total supply of about 100,000 public and private housing units will be completed between 2023 and 2025.
This will likely see a further price correction and promote market stability favouring buyers.
Growth areas
This will bring the total pipeline supply of private housing to about 59,100 units.
According to the URA, of this, 41,900 units will comprise those with planning approval and 17,200 units from Government Land Sale (GLS) sites and awarded en-bloc sites that have not been granted planning approval yet.
Overall, a total supply of about 100,000 public and private housing units will be completed between 2023 and 2025.
This will likely see a further price correction and promote market stability favouring buyers.
Growth areas
Aerial view of Punggol Digital District. Photo: Khalil Adis Consultancy.
The growth areas in Singapore have remained unchanged based on URA’s Master Plan 2019.
The growth areas are in the Greater Southern Waterfront, Punggol Digital District and Woodlands Regional Centre.
Read more about the Greater Southern Waterfront here.
Read more about Punggol Digital District here.
Read more about Woodlands Regional Centre here.
What’s in store for buyers
The growth areas are in the Greater Southern Waterfront, Punggol Digital District and Woodlands Regional Centre.
Read more about the Greater Southern Waterfront here.
Read more about Punggol Digital District here.
Read more about Woodlands Regional Centre here.
What’s in store for buyers
Construction of new BTO flats in Punggol. Photo: Khalil Adis Consultancy.
With about 100,000 public and private housing units to be completed between 2023 and 2025, 2024 will shift towards a buyers' market.
This is because the incoming supply will ease demand and will likely see a further price correction and promote market stability in the resale market.
This will undoubtedly favour buyers.
What’s in store for sellers
This is because the incoming supply will ease demand and will likely see a further price correction and promote market stability in the resale market.
This will undoubtedly favour buyers.
What’s in store for sellers
Aerial view of Tanjong Pagar and the Greater Southern Waterfront. Photo: Khalil Adis Consultancy.
Sellers will likely face a tough time in 2024 as the 100,000 supply of both public and private housing will see buyers buy new launches in both markets.
As such, sellers will need to price their houses realistically to continue attracting buyers.
We are also likely to see fewer million-dollar HDB flats and those selling with cash-over-valuation (COV).
Sellers will need to be pragmatic, moving forward.
What’s in store for tenants
As such, sellers will need to price their houses realistically to continue attracting buyers.
We are also likely to see fewer million-dollar HDB flats and those selling with cash-over-valuation (COV).
Sellers will need to be pragmatic, moving forward.
What’s in store for tenants
2024 is a year to negotiate your lease. Photo: Pexels by fauzel.
Tenants, there will be plenty of good deals in the market.
As such, 2024 is a good year for you to secure new a home with a fresh new lease at a reasonable price.
This is because the incoming supply will impact the rental market resulting in rentals for HDB and private properties coming down.
If your lease is expiring this year, it may be a good idea to renegotiate your lease with your landlord at market price.
What’s in store for landlords
As such, 2024 is a good year for you to secure new a home with a fresh new lease at a reasonable price.
This is because the incoming supply will impact the rental market resulting in rentals for HDB and private properties coming down.
If your lease is expiring this year, it may be a good idea to renegotiate your lease with your landlord at market price.
What’s in store for landlords
Landlords will have to be realistic in 2024. Photo: Pexels by Kampus Production.
Landlords will have to be realistic in their asking price in 2024 as the rental market is cooling off.
Conclusion
Conclusion
DUO located in Bugis. Photo: Pexels by Geraldine Tay.
As Singapore's property market navigates the dynamic landscape of 2024, stakeholders should remain vigilant to the evolving trends.
The delicate balance between supply and demand, coupled with government interventions, will play a pivotal role in shaping the property landscape for buyers, sellers, tenants and landlords alike.
The delicate balance between supply and demand, coupled with government interventions, will play a pivotal role in shaping the property landscape for buyers, sellers, tenants and landlords alike.
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A friend's personal journey of overcoming homelessness with the support of the government.
By Khalil Adis
By Khalil Adis
An HDB estate in Toa Payoh. Photo: Khalil Adis Consultancy.
Imagine being homeless and not knowing where to turn for help.
Recently, a friend of mine, whom I will call Derek, shared his struggles with me, and it struck a chord in my heart.
Having personally experienced this, it is a situation I would not wish upon to anyone else.
Through Derek's and my journey, it shows that the Singapore government genuinely does care and provides assistance to those in need.
Trying to move forward but unable to afford a home
Recently, a friend of mine, whom I will call Derek, shared his struggles with me, and it struck a chord in my heart.
Having personally experienced this, it is a situation I would not wish upon to anyone else.
Through Derek's and my journey, it shows that the Singapore government genuinely does care and provides assistance to those in need.
Trying to move forward but unable to afford a home
A picture depicting a divorce proceeding. Photo: Pexels by Karolina Grabowska.
Derek's life took a difficult turn after a bitter divorce, leaving him without a place to call home.
With no choice but to leave his in-law's house, he had to find a rental room at short notice.
Fortunately, Derek did not have the added burden of a shared matrimonial home or children, which made the situation slightly easier.
Despite his efforts to move forward, Derek faced another obstacle – he could not afford to buy a home of his own with his current financial situation.
Feeling hopeless and at a loss
With no choice but to leave his in-law's house, he had to find a rental room at short notice.
Fortunately, Derek did not have the added burden of a shared matrimonial home or children, which made the situation slightly easier.
Despite his efforts to move forward, Derek faced another obstacle – he could not afford to buy a home of his own with his current financial situation.
Feeling hopeless and at a loss
2-room HDB flats in Punggol are already transacting at a median price of $330,000, data from HDB showed. Photo: Khalil Adis Consultancy.
To afford a decent resale 2-room flat, Derek needed an additional $100,000 on top of his cash, CPF, and HDB loan amounting to $200,000.
As a second-timer, he did not qualify for CPF Housing Grants that could have helped him.
The situation seemed dire and Derek felt like he was running out of options.
However, I knew from personal experience that giving up was not the answer.
Light at the end of the tunnel
As a second-timer, he did not qualify for CPF Housing Grants that could have helped him.
The situation seemed dire and Derek felt like he was running out of options.
However, I knew from personal experience that giving up was not the answer.
Light at the end of the tunnel
Photo: Pexels by Kasuma.
I encouraged Derek to reach out to his Member of Parliament (MP) for help.
Despite the high cost of living in Singapore, our government genuinely cares about those in need and assists on a case-by-case basis.
I had gone through a similar situation before and received the support I needed.
Derek took my advice and wrote to his MP, hoping for a glimmer of hope.
The government's support and assistance
Despite the high cost of living in Singapore, our government genuinely cares about those in need and assists on a case-by-case basis.
I had gone through a similar situation before and received the support I needed.
Derek took my advice and wrote to his MP, hoping for a glimmer of hope.
The government's support and assistance
HDB Hub in Toa Payoh. Photo: Khalil Adis Consultancy.
Recently, Derek shared some good news with me – his MP responded and the Housing Development Board (HDB) is looking into increasing his loan quantum.
This development means that Derek may soon be able to fulfill his dream of owning a home.
Derek's experience serves as a reminder that we should never give up hope, and reaching out to your MP can make a significant difference in your housing situation.
Conclusion
This development means that Derek may soon be able to fulfill his dream of owning a home.
Derek's experience serves as a reminder that we should never give up hope, and reaching out to your MP can make a significant difference in your housing situation.
Conclusion
A Built-To-Order (BTO) project in Punggol. Photo: Khalil Adis Consultancy.
In Singapore, homelessness is not an outcome that the government wants for its citizens.
As Derek's story shows, the government does show compassion and support when individuals find themselves in challenging circumstances.
If you are facing similar housing struggles, I urge you not to lose hope and to reach out to your MP for assistance.
The government is committed to helping those in need and ensuring that no one is left without a home.
That's the beauty of Singapore – a nation that cares for its people, even in times of hardship.
As Derek's story shows, the government does show compassion and support when individuals find themselves in challenging circumstances.
If you are facing similar housing struggles, I urge you not to lose hope and to reach out to your MP for assistance.
The government is committed to helping those in need and ensuring that no one is left without a home.
That's the beauty of Singapore – a nation that cares for its people, even in times of hardship.
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As Singapore's property market continues to reach new heights, investors are eyeing Malaysia as a potential alternative. But is it the answer to Singapore's escalating property prices? Let us find out.
By Khalil Adis
By Khalil Adis
Cars entering Johor Causeway from Woodlands in Singapore. Photo: Khalil Adis Consultancy.
Singapore's property market has been making waves, with both the HDB and private property sectors hitting record highs in their price indexes.
This surge in prices has prompted investors and homebuyers to search for alternatives and Malaysia has emerged as a popular choice.
However, before you pack your bags and head south, let us dive into whether Malaysia truly offers a viable solution to Singapore's escalating property prices.
The latest data from the Housing & Development Board (HDB) and the Urban Redevelopment Authority (URA) paints an intriguing picture.
The HDB Resale Price Index (RPI) and Private Property Index (PPI) for the first quarter of 2023 reached unprecedented levels of 173.6 points and 194.8 points, respectively.
These figures indicate a strong demand for properties in Singapore, driving prices to new heights.
Analysts say they are witnessing resale transactions decreasing from April to March 2023, which could explain the marginal increase in the RPI.
“In April 2023, HDB resale volumes decreased month-on-month by 4.3 per cent, following a 23.7 per cent surge in transaction activities in March,” said Luqman Hakim, chief data & analytics officer at 99.co..
But it is not just rising property prices that pose a concern.
Rental rates have also skyrocketed, leaving tenants grappling with the search for affordable accommodations.
Rising rentals
This surge in prices has prompted investors and homebuyers to search for alternatives and Malaysia has emerged as a popular choice.
However, before you pack your bags and head south, let us dive into whether Malaysia truly offers a viable solution to Singapore's escalating property prices.
The latest data from the Housing & Development Board (HDB) and the Urban Redevelopment Authority (URA) paints an intriguing picture.
The HDB Resale Price Index (RPI) and Private Property Index (PPI) for the first quarter of 2023 reached unprecedented levels of 173.6 points and 194.8 points, respectively.
These figures indicate a strong demand for properties in Singapore, driving prices to new heights.
Analysts say they are witnessing resale transactions decreasing from April to March 2023, which could explain the marginal increase in the RPI.
“In April 2023, HDB resale volumes decreased month-on-month by 4.3 per cent, following a 23.7 per cent surge in transaction activities in March,” said Luqman Hakim, chief data & analytics officer at 99.co..
But it is not just rising property prices that pose a concern.
Rental rates have also skyrocketed, leaving tenants grappling with the search for affordable accommodations.
Rising rentals
Even far-flung HDB estates such as in Jurong West are witnessing an increase in rental. Photo: Khalil Adis Consultancy.
Take, for instance, Marwani (not her real name), a landlord in Jurong West, who witnessed the rental price of her 4-room flat soar from $1,750 per month in 2021 to a staggering $3,500 per month in 2023—an almost 200 per cent increase!
“I am lucky that my tenants have continued to stay on despite the steep increase in rental,” said Marwani.
Her agent was the one who negotiated the lease renewal.
The private property rental market also experienced a steep climb, with a 7.2 per cent increase in the first quarter of 2023.
These exorbitant prices and soaring rentals have left many individuals, like Edward (not his real name), a tenant in Singapore, seriously considering buying a resale HDB flat as a more financially viable option.
“I signed a 2-year lease which had averted a rental hike. However, I am pretty sure it will go up next year,” said Edward who lives close to the city centre.
Edward believes that owning property might be more cost-effective in the long run, particularly with the prospect of rising rents.
“It makes more financial sense to buy now rather than rent as I foresee it will be cheaper to pay my monthly mortgage should my rent increase,” he said.
Analysts have also observed this growing trend, noting that tenants are increasingly turning to purchasing resale flats amidst high rental prices.
“Resale prices increased by 1.1 per cent compared to March 2023, with 5-room flats rising the most at 1.9 per cent. It is possible that with rent prices remaining high, many tenants are opting to buy resale flats instead. Subsequently, with the revised ABSD rates from 27 April 2023 onwards, there is expectant pressure on rental demand (and prices), prompting spillover demand from tenants as they reinvest and buy HDB resale flats,” said Hakim.
With the demand for properties in Singapore remained robust, the government has stepped in to cool the market.
The recent increase in Additional Buyers Stamp Duty (ABSD), which affects second-timer Singaporeans and first-time foreign property owners, aims to rein in property speculation.
Push factor to Malaysia?
“I am lucky that my tenants have continued to stay on despite the steep increase in rental,” said Marwani.
Her agent was the one who negotiated the lease renewal.
The private property rental market also experienced a steep climb, with a 7.2 per cent increase in the first quarter of 2023.
These exorbitant prices and soaring rentals have left many individuals, like Edward (not his real name), a tenant in Singapore, seriously considering buying a resale HDB flat as a more financially viable option.
“I signed a 2-year lease which had averted a rental hike. However, I am pretty sure it will go up next year,” said Edward who lives close to the city centre.
Edward believes that owning property might be more cost-effective in the long run, particularly with the prospect of rising rents.
“It makes more financial sense to buy now rather than rent as I foresee it will be cheaper to pay my monthly mortgage should my rent increase,” he said.
Analysts have also observed this growing trend, noting that tenants are increasingly turning to purchasing resale flats amidst high rental prices.
“Resale prices increased by 1.1 per cent compared to March 2023, with 5-room flats rising the most at 1.9 per cent. It is possible that with rent prices remaining high, many tenants are opting to buy resale flats instead. Subsequently, with the revised ABSD rates from 27 April 2023 onwards, there is expectant pressure on rental demand (and prices), prompting spillover demand from tenants as they reinvest and buy HDB resale flats,” said Hakim.
With the demand for properties in Singapore remained robust, the government has stepped in to cool the market.
The recent increase in Additional Buyers Stamp Duty (ABSD), which affects second-timer Singaporeans and first-time foreign property owners, aims to rein in property speculation.
Push factor to Malaysia?
Mega projects like Country Garden Danga Bay have seen asking prices in the secondary market selling at below launch price. Photo: Khalil Adis Consultancy.
With 2-room HDB flats now hovering around the $300,000 mark and million dollar HDB flats becoming this norm, could this push potential biuyers to Malaysia?
Not quite.
Yusoff (not his real name) is among one of the few Singaporeans who is packing his bags after recently selling his 2-room HDB flat in Woodlands for slightly above $300,000.
“My wife recently passed away while my relatives are all in Malaysia. It makes sense for me to retire there,” said Yusoff.
Indeed, the first quarter data of 2023 from HDB showed that such flats were transacted at a median price of $330,000, $325,000 and $315,000 in Punggol, Sembawang and Yishun respectively.
That is almost enough to buy a private property in Malaysia where the minimum purchase price in most states is at RM1 million, including in Johor.
However, not everyone is in the same predicament as Yusoff.
Edward, for instance, is staying put.
Despite these cooling measures, the idea of buying properties across the causeway in Malaysia may not be as enticing as it seems.
“There are many push factors such as the lack of liberal values in a predominantly Muslim country. Also, Malaysia appears to be unstable both politically and economically,” said Edward.
While the affordability factor in Malaysia's property market may initially catch the eye of potential buyers, it is worth noting that property overhang for residential properties continues to be a serious issue.
Johor, for instance, continues to be the leading state for residential overhang at 5,348 units, the third quarter of 2023 data from the National Property and Information Centre (NAPIC) showed.
This would put pressure on the secondary market causing investors to suffer a loss as in the case of Country Garden Danga Bay.
Additionally, concerns surrounding political and economic stability in Malaysia may deter investors who prioritise stability and predictability in their investments.
Ultimately, while the ABSD increase may lead some investors to explore opportunities outside of Singapore, it seems that the challenges and limitations associated with investing in Malaysia may outweigh the potential benefits.
As always, conducting thorough research and seeking expert advice before making any investment decisions is crucial.
Conclusion
Not quite.
Yusoff (not his real name) is among one of the few Singaporeans who is packing his bags after recently selling his 2-room HDB flat in Woodlands for slightly above $300,000.
“My wife recently passed away while my relatives are all in Malaysia. It makes sense for me to retire there,” said Yusoff.
Indeed, the first quarter data of 2023 from HDB showed that such flats were transacted at a median price of $330,000, $325,000 and $315,000 in Punggol, Sembawang and Yishun respectively.
That is almost enough to buy a private property in Malaysia where the minimum purchase price in most states is at RM1 million, including in Johor.
However, not everyone is in the same predicament as Yusoff.
Edward, for instance, is staying put.
Despite these cooling measures, the idea of buying properties across the causeway in Malaysia may not be as enticing as it seems.
“There are many push factors such as the lack of liberal values in a predominantly Muslim country. Also, Malaysia appears to be unstable both politically and economically,” said Edward.
While the affordability factor in Malaysia's property market may initially catch the eye of potential buyers, it is worth noting that property overhang for residential properties continues to be a serious issue.
Johor, for instance, continues to be the leading state for residential overhang at 5,348 units, the third quarter of 2023 data from the National Property and Information Centre (NAPIC) showed.
This would put pressure on the secondary market causing investors to suffer a loss as in the case of Country Garden Danga Bay.
Additionally, concerns surrounding political and economic stability in Malaysia may deter investors who prioritise stability and predictability in their investments.
Ultimately, while the ABSD increase may lead some investors to explore opportunities outside of Singapore, it seems that the challenges and limitations associated with investing in Malaysia may outweigh the potential benefits.
As always, conducting thorough research and seeking expert advice before making any investment decisions is crucial.
Conclusion
R&F Princess Cove is another mega project that is contributing the oversupply situation in Johor. Photo: Khalil Adis Consultancy,
So, is Malaysia truly the solution to escaping Singapore's soaring property prices?
The answer may not be as straightforward as it seems.
While Malaysia offers some advantages in terms of affordability, potential buyers need to carefully consider factors such as political stability and the severe oversupply issue which may impact their investment.
The answer may not be as straightforward as it seems.
While Malaysia offers some advantages in terms of affordability, potential buyers need to carefully consider factors such as political stability and the severe oversupply issue which may impact their investment.
- Published on
While resale HDB and private property are now at a record high, they are seeing a slower pace of price increase.
By Khalil Adis
By Khalil Adis
Jubilee Bridge in Singapore. Photo credit: Adhitya Andanu
As we enter the first quarter of 2023, Singapore’s property market is showing signs of resilience and stability after a turbulent few years.
With a growing population, an expanding economy and a strong demand for housing, both the HDB and private property markets are expected to continue their upward trajectory.
Here is a quick snapshot of what is happening in both the HDB and private property markets.
HDB: Resale Price Index (RPI) is now at a record high
With a growing population, an expanding economy and a strong demand for housing, both the HDB and private property markets are expected to continue their upward trajectory.
Here is a quick snapshot of what is happening in both the HDB and private property markets.
HDB: Resale Price Index (RPI) is now at a record high
A Built-To-Order (BTO) project in Sengkang. Photo: Khalil Adis Consultancy.
For many Singaporeans, purchasing an HDB flat remains the most affordable option for homeownership.
“I recently bought an HDB flat in Sengkang, and I have noticed that prices have gone up significantly compared to a few years ago. However, it is still affordable compared to private properties,” said one recent buyer, Tan Siew Ling.
The HDB Resale Price Index (RPI) has been on a steady increase since 2019, and in the first quarter of 2023, it is expected to rise further.
According to the HDB’s flash estimates for first quarter of 2023 data from HDB, the RPI is now at 173.4 point which is an increase of 0.9 per cent over that in the fourth quarter of 2022.
“This is a slower increase than the 2.3 per cent increase in the fourth quarter of 2022, and is the smallest quarterly increase compared to the last ten quarters,” said the HDB in its press release.
Challenges
“I recently bought an HDB flat in Sengkang, and I have noticed that prices have gone up significantly compared to a few years ago. However, it is still affordable compared to private properties,” said one recent buyer, Tan Siew Ling.
The HDB Resale Price Index (RPI) has been on a steady increase since 2019, and in the first quarter of 2023, it is expected to rise further.
According to the HDB’s flash estimates for first quarter of 2023 data from HDB, the RPI is now at 173.4 point which is an increase of 0.9 per cent over that in the fourth quarter of 2022.
“This is a slower increase than the 2.3 per cent increase in the fourth quarter of 2022, and is the smallest quarterly increase compared to the last ten quarters,” said the HDB in its press release.
Challenges
Older HDB flats in Jurong West. Photo: Khalil Adis Consultancy.
Nonetheless, the HDB market is not without challenges.
For example, the price gap between newly MOP-ed flats and those in older HDB estates vary greatly.
One such buyer is Amy and Khai who are finding that newly MOP-ed 3-room HDB flats, priced at more than $400,000, to be beyond their budget.
With a combined monthly income of less than $3,000, CPF of around $30,000 and loan of around $180,000, Amy and Khai can only afford to purchase flats in older HDB estates.
In the end, they narrowed down their search to a flat in Jurong West to be near their parents to qualify for the Proximity Housing Grant.
While the asking price is significantly cheaper at $350,000, it comes with its own set of challenges.
For instance, Amy and Khai are subjected to a pro-rated CPF usage since the remaining lease does not cover the age of the youngest buyer up to the age of 95.
As Amy’s age is 30 and the remaining lease is 60 years, the couple’s HDB loan and Enhanced Housing Grant had to be pro-rated.
Fortunately, with the increase in Family Grant from $50,000 to $80,000, Proximity Housing Grant of $30,000 and Enhanced Housing Grant, the grants went a long way in helping the young couple finance their flat purchase.
“Our agent was very helpful in helping us do our financial calculations and recommend properties within our budget. Within one viewing, we decided to make an offer for the flat in Jurong West,” said Khai.
“The government has imposed stricter loan-to-value ratios on buyers for HDB flats with a remaining lease of less than 60 years. This has resulted in a slower market for older HDB flats,” said analyst, Lim Hui Shan.
Nonetheless, the HDB market is expected to remain stable and resilient.
“Resale prices ceased to increase for the first time since June 2020, putting an end to the historic price rally that lasted for 31 consecutive months, as most room types experienced no increases in February 2023 except for 3-room flats. Following the Budget announcements, first-time HDB resale flat buyers can now enjoy higher amount of grants which should ease any concerns on affordability. As such, we expect demand to remain solid for the rest of 2023,” said Pow Ying Khuan, head of research, 99 Group.
Private property market: Increase in ABSD has impacted luxury properties
For example, the price gap between newly MOP-ed flats and those in older HDB estates vary greatly.
One such buyer is Amy and Khai who are finding that newly MOP-ed 3-room HDB flats, priced at more than $400,000, to be beyond their budget.
With a combined monthly income of less than $3,000, CPF of around $30,000 and loan of around $180,000, Amy and Khai can only afford to purchase flats in older HDB estates.
In the end, they narrowed down their search to a flat in Jurong West to be near their parents to qualify for the Proximity Housing Grant.
While the asking price is significantly cheaper at $350,000, it comes with its own set of challenges.
For instance, Amy and Khai are subjected to a pro-rated CPF usage since the remaining lease does not cover the age of the youngest buyer up to the age of 95.
As Amy’s age is 30 and the remaining lease is 60 years, the couple’s HDB loan and Enhanced Housing Grant had to be pro-rated.
Fortunately, with the increase in Family Grant from $50,000 to $80,000, Proximity Housing Grant of $30,000 and Enhanced Housing Grant, the grants went a long way in helping the young couple finance their flat purchase.
“Our agent was very helpful in helping us do our financial calculations and recommend properties within our budget. Within one viewing, we decided to make an offer for the flat in Jurong West,” said Khai.
“The government has imposed stricter loan-to-value ratios on buyers for HDB flats with a remaining lease of less than 60 years. This has resulted in a slower market for older HDB flats,” said analyst, Lim Hui Shan.
Nonetheless, the HDB market is expected to remain stable and resilient.
“Resale prices ceased to increase for the first time since June 2020, putting an end to the historic price rally that lasted for 31 consecutive months, as most room types experienced no increases in February 2023 except for 3-room flats. Following the Budget announcements, first-time HDB resale flat buyers can now enjoy higher amount of grants which should ease any concerns on affordability. As such, we expect demand to remain solid for the rest of 2023,” said Pow Ying Khuan, head of research, 99 Group.
Private property market: Increase in ABSD has impacted luxury properties
Bungalows in the exclusive Sentosa Cove enclave. Photo: Khalil Adis Consultancy.
The private property market in Singapore has also experienced steady growth over the years.
According to the Urban Redevelopment Authority (URA) flash estimates, the Private Property Index (PPI) has increased by 6.0 points from 188.6 points in fourth quarter of 2022 to 194.6 points in first quarter of 2023.
“I recently purchased a condo in Pasir Panjang and I’m really happy with my investment. I feel that the property market in Singapore is relatively stable and resilient,” said one investor, Johnathan Koh.
However, the private property market faces its own set of challenges.
The government has imposed an increase for the Additional Buyer’s Stamp Duty (ABSD) for foreign buyers (from 20 to 30 per cent) and local buyers (from 12 to 17 per cent) purchasing a second property.
Analyst, Cheryl Lim, commented that “the ABSD has affected the demand for private properties, especially for high-end luxury properties. However, there is still demand for affordable and mid-range properties.”
Despite the challenges, the private property market is expected to remain stable and continue to see growth in the first quarter of 2023.
In conclusion, the Singapore property market remains resilient and stable, with both the HDB and private property markets showing positive signs of growth.
According to the Urban Redevelopment Authority (URA) flash estimates, the Private Property Index (PPI) has increased by 6.0 points from 188.6 points in fourth quarter of 2022 to 194.6 points in first quarter of 2023.
“I recently purchased a condo in Pasir Panjang and I’m really happy with my investment. I feel that the property market in Singapore is relatively stable and resilient,” said one investor, Johnathan Koh.
However, the private property market faces its own set of challenges.
The government has imposed an increase for the Additional Buyer’s Stamp Duty (ABSD) for foreign buyers (from 20 to 30 per cent) and local buyers (from 12 to 17 per cent) purchasing a second property.
Analyst, Cheryl Lim, commented that “the ABSD has affected the demand for private properties, especially for high-end luxury properties. However, there is still demand for affordable and mid-range properties.”
Despite the challenges, the private property market is expected to remain stable and continue to see growth in the first quarter of 2023.
In conclusion, the Singapore property market remains resilient and stable, with both the HDB and private property markets showing positive signs of growth.
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Expect a period of correction for resale HDB flats and private properties which may favour buyers. Meanwhile, the rental market will continue to see strong demand favouring landlords.
By Khalil Adis
By Khalil Adis
An upcoming Built-To-Order (BTO) project in Anchorvale in Sengkang. Photo: Khalil Adis Consultancy.
The cooling measures appear to have had an impact on the property market as it is now slowly shifting from a sellers’ to a buyers’ market.
Anecdotal evidence on the ground shows that sellers are more realistic in their asking prices while buyers are now able to get homes that are within their budget.
One such buyer is Ronald (not his real name) who is currently renting a room with his wife.
“We looked around in early November 2022 but prices for 3-room HDB flats that had recently achieved their Minimum Occupation Period (MOP) were not within our budget ranging from $420,000 onwards. Sellers were also not willing to budge on their asking price,” said Ronald.
However, in December, Ronald noticed that their asking price had started to come down at around the $400,000 mark based on listings on PropertyGuru.
Meanwhile, data from HDB say otherwise, showing that the median resale price for 3-room HDB flats in the third quarter of 2022 has remained somewhat consistent, ranging from $320,000 to $460,000 compared to $320,000 to $436,000 in the second quarter.
Sensing the market has turned, Ronald and his wife decided to make an offer for a corner unit in Bukit Panjang at $405,000 which was still lower than the asking price of $410,000.
With an estimated monthly mortgage of $1,137, Lee said buying the unit will be a much cheaper option than renting.
Ronald is currently paying $1.200 a month for his room rental.
Thankfully, his offer was accepted by the seller.
“The rent we are paying is currently quite hefty as rents have increased significantly by 20 to 30 per cent. Therefore, buying a house makes much more financial sense for us. Also, I am familiar with the area and it is within walking distance to Senja LRT station with plenty of amenities nearby,” he said.
Indeed, according to data from the Urban Redevelopment Authority (URA), rentals of non-landed properties increased by 8.3 per cent in the third quarter of 2022, compared with the 7.1 per cent increase in the previous quarter.
Meanwhile, data from HDB showed that the median price for the entire HDB flats for 2-room in the third quarter of 2022 was transacted at a median price of $1,930.
“Our completion is expected to be around March and April 2023 which we are looking forward to as we anticipate our rent to increase further. Finally, we are able to have our own home,” he said.
Sellers are more realistic
Anecdotal evidence on the ground shows that sellers are more realistic in their asking prices while buyers are now able to get homes that are within their budget.
One such buyer is Ronald (not his real name) who is currently renting a room with his wife.
“We looked around in early November 2022 but prices for 3-room HDB flats that had recently achieved their Minimum Occupation Period (MOP) were not within our budget ranging from $420,000 onwards. Sellers were also not willing to budge on their asking price,” said Ronald.
However, in December, Ronald noticed that their asking price had started to come down at around the $400,000 mark based on listings on PropertyGuru.
Meanwhile, data from HDB say otherwise, showing that the median resale price for 3-room HDB flats in the third quarter of 2022 has remained somewhat consistent, ranging from $320,000 to $460,000 compared to $320,000 to $436,000 in the second quarter.
Sensing the market has turned, Ronald and his wife decided to make an offer for a corner unit in Bukit Panjang at $405,000 which was still lower than the asking price of $410,000.
With an estimated monthly mortgage of $1,137, Lee said buying the unit will be a much cheaper option than renting.
Ronald is currently paying $1.200 a month for his room rental.
Thankfully, his offer was accepted by the seller.
“The rent we are paying is currently quite hefty as rents have increased significantly by 20 to 30 per cent. Therefore, buying a house makes much more financial sense for us. Also, I am familiar with the area and it is within walking distance to Senja LRT station with plenty of amenities nearby,” he said.
Indeed, according to data from the Urban Redevelopment Authority (URA), rentals of non-landed properties increased by 8.3 per cent in the third quarter of 2022, compared with the 7.1 per cent increase in the previous quarter.
Meanwhile, data from HDB showed that the median price for the entire HDB flats for 2-room in the third quarter of 2022 was transacted at a median price of $1,930.
“Our completion is expected to be around March and April 2023 which we are looking forward to as we anticipate our rent to increase further. Finally, we are able to have our own home,” he said.
Sellers are more realistic
Scaled model of Tengah HDB estate at HDB Hub. Photo: Khalil Adis Consultancy.
Meanwhile, sellers are also willing to accept lower offers as the cooling measures take their bite.
One such seller is Siti (not her real name) who has been trying to offload her odd-sized executive HDB flat since July 2022.
Marketing her unit has proved to be challenging as her master bedroom comes with odd corners that make the placement of beds and cupboards difficult.
Nonetheless, Siti received various offers starting from $660,000 and then $620,000.
Subsequently, the sellers backed out due to various reasons.
She finally settled for an offer of $615,000.
Another seller adjusted their expectations for their 3-room HDB flat from $442,000 to $435,000 after numerous viewings.
“We noticed that buyers are now taking time to make an offer,” said the seller who wishes to remain anonymous.
HDB’s Resale Price Index (RPI) for the third quarter of 2022 showed that while the index saw an increase, it was slowed than the previous quarter.
In the third quarter, the index was 168.1 points which was an increase of 2.6 per cent over that in the second quarter of 2022.
This is a slower increase than the 2.8 per cent increase in the second quarter of 2022.
Meanwhile, resale transactions rose by 10.7 per cent, from 6,819 cases in the second quarter of 2022 to 7,546 cases in the third quarter of 2022.
When compared to the third quarter of 2021, resale transactions in the third quarter of 2022 were 10.5 per cent lower.
Predictions for 2023
One such seller is Siti (not her real name) who has been trying to offload her odd-sized executive HDB flat since July 2022.
Marketing her unit has proved to be challenging as her master bedroom comes with odd corners that make the placement of beds and cupboards difficult.
Nonetheless, Siti received various offers starting from $660,000 and then $620,000.
Subsequently, the sellers backed out due to various reasons.
She finally settled for an offer of $615,000.
Another seller adjusted their expectations for their 3-room HDB flat from $442,000 to $435,000 after numerous viewings.
“We noticed that buyers are now taking time to make an offer,” said the seller who wishes to remain anonymous.
HDB’s Resale Price Index (RPI) for the third quarter of 2022 showed that while the index saw an increase, it was slowed than the previous quarter.
In the third quarter, the index was 168.1 points which was an increase of 2.6 per cent over that in the second quarter of 2022.
This is a slower increase than the 2.8 per cent increase in the second quarter of 2022.
Meanwhile, resale transactions rose by 10.7 per cent, from 6,819 cases in the second quarter of 2022 to 7,546 cases in the third quarter of 2022.
When compared to the third quarter of 2021, resale transactions in the third quarter of 2022 were 10.5 per cent lower.
Predictions for 2023
View of Suntec City from Rochor, Singapore. Photo: Jeda Hutchison.
Looking ahead, the HDB resale market is expected to cool further due to the incoming supply from its Build-To-Order (BTO) exercise.
This will mean buyers can anticipate the prices for HDB resale flats to come down to a more realistic level.
According to HDB, in November, it launched 9,655 flats for sale which was by far the largest BTO offering ever in a single launch.
Spread across 10 projects in both mature and non-mature estates in Kallang Whampoa, Queenstown, Bukit Batok, Tengah, and Yishun, around 60 per cent (or 5,861 units) are offered in non-mature estates.
This makes up almost half the number of flats offered in non-mature estates in the whole of 2022
“The November 2022 BTO launch is the largest BTO sales exercise yet for HDB. The bulk of the almost 10,000 flat supply, or close to 6,000 new flats, are located in non-mature estates (NMEs). This number is in fact bigger than the total flat supply of a typical BTO sales exercise, thus offering a wide range of affordable flats for homebuyers. With 95 per cent of 4-room and larger flats in this bumper crop set aside for first-timer households, and additional ballot chances for them, we encourage first-time applicants to apply for flats in the non-mature estates to increase their chances of securing a new BTO flat,” said HDB’s chief executive officer, Tan Meng Dui.
When including the 1,071 units offered under the Sale of Balance Flats (SBF) exercise, a total of 10,726 new flats are offered in the November 2022 sales exercise.
Meanwhile, the rental market for both private and HDB properties is expected to heat up further as the incoming supply from private (49,384 units as of the third quarter of 2022) and HDB flats (10,726 units) will take a few years to come on stream.
Therefore, tenants may wish to exercise prudence by locking into a 2-year lease to mitigate any price increase.
This will mean buyers can anticipate the prices for HDB resale flats to come down to a more realistic level.
According to HDB, in November, it launched 9,655 flats for sale which was by far the largest BTO offering ever in a single launch.
Spread across 10 projects in both mature and non-mature estates in Kallang Whampoa, Queenstown, Bukit Batok, Tengah, and Yishun, around 60 per cent (or 5,861 units) are offered in non-mature estates.
This makes up almost half the number of flats offered in non-mature estates in the whole of 2022
“The November 2022 BTO launch is the largest BTO sales exercise yet for HDB. The bulk of the almost 10,000 flat supply, or close to 6,000 new flats, are located in non-mature estates (NMEs). This number is in fact bigger than the total flat supply of a typical BTO sales exercise, thus offering a wide range of affordable flats for homebuyers. With 95 per cent of 4-room and larger flats in this bumper crop set aside for first-timer households, and additional ballot chances for them, we encourage first-time applicants to apply for flats in the non-mature estates to increase their chances of securing a new BTO flat,” said HDB’s chief executive officer, Tan Meng Dui.
When including the 1,071 units offered under the Sale of Balance Flats (SBF) exercise, a total of 10,726 new flats are offered in the November 2022 sales exercise.
Meanwhile, the rental market for both private and HDB properties is expected to heat up further as the incoming supply from private (49,384 units as of the third quarter of 2022) and HDB flats (10,726 units) will take a few years to come on stream.
Therefore, tenants may wish to exercise prudence by locking into a 2-year lease to mitigate any price increase.
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Property prices are expected to correct in the months ahead which may favour buyers. Meanwhile, the rental market is expected to heat up further.
By Khalil Adis
By Khalil Adis
A scaled model for public housing at HDB Hub. Photo: Khalil Adis Consultancy.
On 30 September 2022, the Singapore government announced various property cooling measures that are aimed at ensuring prudent borrowing and moderating demand.
Indeed, the HDB Resale Price Index (RPI) and Private Property Index (PPI) as of the third quarter of 2022 are now at record highs at 168.1 and 187.8 points respectively.
This means that first-time homebuyers are finding both HDB flats and private properties to be severely unaffordable.
Meanwhile, potential sellers see this as an opportune time to profit from the red-hot property market.
With this in mind, the government has had to intervene to ensure property prices remain affordable and are in tandem with wages.
The measures include the following four-pronged approach:
How they may impact you as a consumer:
Indeed, the HDB Resale Price Index (RPI) and Private Property Index (PPI) as of the third quarter of 2022 are now at record highs at 168.1 and 187.8 points respectively.
This means that first-time homebuyers are finding both HDB flats and private properties to be severely unaffordable.
Meanwhile, potential sellers see this as an opportune time to profit from the red-hot property market.
With this in mind, the government has had to intervene to ensure property prices remain affordable and are in tandem with wages.
The measures include the following four-pronged approach:
- Increasing the rate floor for private residential property loans. The Monetary Authority of Singapore (MAS) will raise the interest floor rate by 0.5 per cent to 4 per cent per annum up from 3.5 per cent per annum to compute the Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR).
- For housing loans granted by HDB, HDB will introduce an interest rate floor of 3 per cent for computing the eligible loan amount.
- Lowering the Loan-to-Value (LTV) limit for HDB housing loans from 85 per cent to 80 per cent.
- Imposing a wait-out period of 15 months for existing and former private residential property owners to buy a non-subsidised HDB resale flat.
How they may impact you as a consumer:
HDB Hub @ Toa Payoh. Photo: Khalil Adis Consultancy.
For point 1, you will have to have a higher monthly combined income and pay a higher monthly mortgage and combined income .
However, the actual interest rates charged will be determined by the private financial institutions.
For point 2, the stress test has been increased to 3 per cent when calculating your monthly mortgage but with a reduced Loan-to-Value (LTV) limit at 80 per cent.
This is to ensure your monthly mortgage remains affordable and within the 30 per cent Mortgage Servicing Ratio (MSR).
On the overall, with a higher downpayment of 20 per cent, it will result in a lower mortgage payment when compared to an LTV limit of 85 per cent.
However, this will not affect the actual HDB concessionary interest rate, which will remain unchanged at 2.6 per cent per annum.
For point 3, buyers will need to come up with a higher cash and/or CPF amount (an increase of 5 per cent) to make up the 20 per cent downpayment.
For example, for an $500,000 HDB flat, you will need to come up with $100,000 (80 per cent LTV) as opposed to $75,000 (85 per cent LTV).
This means an additional cash and/or CPF outlay of $25,000.
For point 4, this will mean sellers will have to rent either an HDB flat or private property during the interim period.
This will result in increased demand in the rental market which will push asking prices further.
According to data from the Urban Redevelopment Authority (URA), rentals of private residential properties had increased by 8.6 per cent in the third quarter to reach 137.9 points from 127.0 points in the second quarter of 2022.
Meanwhile, HDB rentals have increased by around 30 per cent.
Looking ahead, the rental market is expected to strengthen further which will favour landlords.
Summary
However, the actual interest rates charged will be determined by the private financial institutions.
For point 2, the stress test has been increased to 3 per cent when calculating your monthly mortgage but with a reduced Loan-to-Value (LTV) limit at 80 per cent.
This is to ensure your monthly mortgage remains affordable and within the 30 per cent Mortgage Servicing Ratio (MSR).
On the overall, with a higher downpayment of 20 per cent, it will result in a lower mortgage payment when compared to an LTV limit of 85 per cent.
However, this will not affect the actual HDB concessionary interest rate, which will remain unchanged at 2.6 per cent per annum.
For point 3, buyers will need to come up with a higher cash and/or CPF amount (an increase of 5 per cent) to make up the 20 per cent downpayment.
For example, for an $500,000 HDB flat, you will need to come up with $100,000 (80 per cent LTV) as opposed to $75,000 (85 per cent LTV).
This means an additional cash and/or CPF outlay of $25,000.
For point 4, this will mean sellers will have to rent either an HDB flat or private property during the interim period.
This will result in increased demand in the rental market which will push asking prices further.
According to data from the Urban Redevelopment Authority (URA), rentals of private residential properties had increased by 8.6 per cent in the third quarter to reach 137.9 points from 127.0 points in the second quarter of 2022.
Meanwhile, HDB rentals have increased by around 30 per cent.
Looking ahead, the rental market is expected to strengthen further which will favour landlords.
Summary
HDB flats in Punggol. Photo: Khalil Adis Consultancy.
For buyers who are looking to buy a resale HDB flat or private property, you might want to wait out until their prices correct.
For sellers, you only have a small window period to take advantage of the exuberant market before it cools in the coming months.
For landlords, the market will favour you due to increasing demand from existing tenants and ex-private property owners who have already sold their homes.
For tenants, you will have to set aside more budget as rentals have now increased by around 30 per cent.
For sellers, you only have a small window period to take advantage of the exuberant market before it cools in the coming months.
For landlords, the market will favour you due to increasing demand from existing tenants and ex-private property owners who have already sold their homes.
For tenants, you will have to set aside more budget as rentals have now increased by around 30 per cent.
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Demand remains strong among local buyers with landed homes proving to be popular.
By Khalil Adis
By Khalil Adis
Landed homes at Horizon Hills in Iskandar Puteri, Johor. Photo: Khalil Adis Consultancy.
Johor’s property market is finally seeing some signs of recovery, with majority of new launches (604 units) located within the state in the first quarter of 2022, data from the National Property and Information Centre (NAPIC) showed.
Of the total of 2,961 units launched across the state of Johor, Melaka, Selangor and Pahang, 164 units (5.6 per cent) were sold.
Majority of them (2,657 units or 90.5 per cent) were landed properties while the remaining 279 units (9.5 per cent) were high-rise apartments.
Landed homes proved to be popular across these states with 164 units sold (6.2 per cent) out of the 2,657 units launched.
What NAPIC’s data suggests
Of the total of 2,961 units launched across the state of Johor, Melaka, Selangor and Pahang, 164 units (5.6 per cent) were sold.
Majority of them (2,657 units or 90.5 per cent) were landed properties while the remaining 279 units (9.5 per cent) were high-rise apartments.
Landed homes proved to be popular across these states with 164 units sold (6.2 per cent) out of the 2,657 units launched.
What NAPIC’s data suggests
Landed homes in Iskandar Puteri by UEM Sunrise. Photo: Khalil Adis Consultancy.
While NAPIC’s data did not give a breakdown of the nationalities of buyers, these landed homes are likely snapped up by local buyers.
Unfortunately, NAPIC’s data did not provide a breakdown of how many units were sold in Johor out of the 604 units launched.
Interestingly, majority of the launches (1,197 units or 40.8 per cent) were priced from RM300,001 to RM500,000.
This suggests that developers are targeting mass market local buyers in the low to medium price range.
Record HDB and private property prices in Singapore may have spurred buying activity
Unfortunately, NAPIC’s data did not provide a breakdown of how many units were sold in Johor out of the 604 units launched.
Interestingly, majority of the launches (1,197 units or 40.8 per cent) were priced from RM300,001 to RM500,000.
This suggests that developers are targeting mass market local buyers in the low to medium price range.
Record HDB and private property prices in Singapore may have spurred buying activity
Scaled model of upcoming HDB estates at HDB Hub: Photo: Khalil Adis Consultancy.
With majority of these launches located in the state of Johor, it is also likely developers are targeting Malaysians working in Singapore who prefer living in landed homes.
The city-state has seen record prices in both the HDB and private property markets as well as rental hikes.
Government data showed that the Housing and Development Board (HDB) Resale Price Index (RPI) and Urban Redevelopment Authority (URA) Private Property Index (PPI), as of the second quarter of 2022, are now at a record high.
For example, HDB’s RPI is now at 163.9 points which is an increase of 2.8 per cent over that in the first quarter of 2022.
Meanwhile, the PPI is also at a record high of 180.9 points whereby prices of private residential properties had increased by 3.5 per cent in the second quarter of 2022, compared with the 0.7 per cent increase in the previous quarter.
Rentals have also increased in both the public and private housing markets, government data showed.
These are among the push factors for Malaysians working in Singapore to look to buying or renting a property in Johor.
Lukewarm sentiment among Singaporean and foreign investors
The city-state has seen record prices in both the HDB and private property markets as well as rental hikes.
Government data showed that the Housing and Development Board (HDB) Resale Price Index (RPI) and Urban Redevelopment Authority (URA) Private Property Index (PPI), as of the second quarter of 2022, are now at a record high.
For example, HDB’s RPI is now at 163.9 points which is an increase of 2.8 per cent over that in the first quarter of 2022.
Meanwhile, the PPI is also at a record high of 180.9 points whereby prices of private residential properties had increased by 3.5 per cent in the second quarter of 2022, compared with the 0.7 per cent increase in the previous quarter.
Rentals have also increased in both the public and private housing markets, government data showed.
These are among the push factors for Malaysians working in Singapore to look to buying or renting a property in Johor.
Lukewarm sentiment among Singaporean and foreign investors
View of Johor Bahru CBD city skyline. Photo: Khalil Adis Consultancy.
Despite this, Singaporean and foreign investors are adopting a “wait-and-see” approach to Johor’s properties.
Currently, the minimum purchase price in the state of Johor for foreign purchasers are at RM1 million,
Of the 2,936 units launched, only 134 units (6.4 per cent) are priced at above RM1 million.
This suggests that demand from Singaporean and foreign investors has remained rather muted.
Some of the potential factors that may have deterred buying activity include the negative sentiments arising from the ongoing high profile corruptions cases involving Malaysian politicians, the severe oversupply of residential properties in Johor, crime and safety issues as well as the flip-flop in policies about the Malaysia My Second Home (MM2H) programme.
Data from NAPIC showed that Johor has the highest residential overhang in Malaysia with 5,992 unsold units followed by Penang (5,816 units) and Selangor (5,215 units).
Johor also has the highest serviced apartment overhang volume in Malaysia with 16,425 unsold units followed by Kuala Lumpur (4,459 units) and Selangor (2,337 units).
Since the full opening of borders between Singa[pore and Malaysia on 1 April 2022, Johor has seen traffic congestions at both the Woodlands custom, immigration and quarantine (CIQ) checkpoint and Tuas Second Link.
“We are seeing traffic jams across the causeway and the second link as well as long queues at the local eateries with more and more Singaporeans resuming their weekly visits to Johor and Malaysia. The Johor traffic to Singapore is almost back to normal,” economic affairs minister Mustapa Mohamed was reported as saying.
However, buying activity among Singaporean and foreign investors has yet to pick up.
Iskandar Malaysia continues to attract institutional investors
Currently, the minimum purchase price in the state of Johor for foreign purchasers are at RM1 million,
Of the 2,936 units launched, only 134 units (6.4 per cent) are priced at above RM1 million.
This suggests that demand from Singaporean and foreign investors has remained rather muted.
Some of the potential factors that may have deterred buying activity include the negative sentiments arising from the ongoing high profile corruptions cases involving Malaysian politicians, the severe oversupply of residential properties in Johor, crime and safety issues as well as the flip-flop in policies about the Malaysia My Second Home (MM2H) programme.
Data from NAPIC showed that Johor has the highest residential overhang in Malaysia with 5,992 unsold units followed by Penang (5,816 units) and Selangor (5,215 units).
Johor also has the highest serviced apartment overhang volume in Malaysia with 16,425 unsold units followed by Kuala Lumpur (4,459 units) and Selangor (2,337 units).
Since the full opening of borders between Singa[pore and Malaysia on 1 April 2022, Johor has seen traffic congestions at both the Woodlands custom, immigration and quarantine (CIQ) checkpoint and Tuas Second Link.
“We are seeing traffic jams across the causeway and the second link as well as long queues at the local eateries with more and more Singaporeans resuming their weekly visits to Johor and Malaysia. The Johor traffic to Singapore is almost back to normal,” economic affairs minister Mustapa Mohamed was reported as saying.
However, buying activity among Singaporean and foreign investors has yet to pick up.
Iskandar Malaysia continues to attract institutional investors
Nusajaya Tech Park in Iskandar Puteri. Photo: Khalil Adis Consultancy.
Despite this, institutional investors have continued to invest in Iskandar Malaysia.
Government data showed that Iskandar Malaysia has recorded committed investments of RM13.2 billion in the same period out of which RM5.9 billion have been realised.
“A total of more than RM10 billion will be generated by foreign investors in this region for the development of data centres,” Prime Minister Datuk Seri Ismail Sabri Yaakob said in a statement.
On July 25, the prime minister chaired the Iskandar Regional Development Authority (IRDA) meeting together with Johor's Chief Minister Datuk Onn Hafiz Ghazi.
“In total, more than 6,000 people in this region have received direct benefits from the socioeconomic initiatives that have been carried out,” he was reported as saying.
Upcoming projects may boost foreign investors’ confidence
Government data showed that Iskandar Malaysia has recorded committed investments of RM13.2 billion in the same period out of which RM5.9 billion have been realised.
“A total of more than RM10 billion will be generated by foreign investors in this region for the development of data centres,” Prime Minister Datuk Seri Ismail Sabri Yaakob said in a statement.
On July 25, the prime minister chaired the Iskandar Regional Development Authority (IRDA) meeting together with Johor's Chief Minister Datuk Onn Hafiz Ghazi.
“In total, more than 6,000 people in this region have received direct benefits from the socioeconomic initiatives that have been carried out,” he was reported as saying.
Upcoming projects may boost foreign investors’ confidence
Construction site of the Woodlands North RTS interchange station. Photo: Khalil Adis Consultancy.
With border restrictions now eased, two projects could bolster confidence in Johor’s property market.
They include the Johor Bahru – Singapore Rapid Transit System (RTS) Link and Coronation Square.
The RTS Link is a 4km cross-border railway shuttle project that will connect via a 25m-high bridge from Woodlands North Station (LRT) in Singapore to the Bukit Chagar Station in Johor Bahru.
When completed in 2026, it can serve up to 10,000 commuters during peak periods, for every hour and in each direction.
Meanwhile, Coronation Square which is located in the Ibrahim International Business District (IIBD) will be Johor’s equivalent to the KLCC.
When completed by 2028, it is expected to create some 60,000 jobs and contribute over RM9 billion to Johor’s economy.
They include the Johor Bahru – Singapore Rapid Transit System (RTS) Link and Coronation Square.
The RTS Link is a 4km cross-border railway shuttle project that will connect via a 25m-high bridge from Woodlands North Station (LRT) in Singapore to the Bukit Chagar Station in Johor Bahru.
When completed in 2026, it can serve up to 10,000 commuters during peak periods, for every hour and in each direction.
Meanwhile, Coronation Square which is located in the Ibrahim International Business District (IIBD) will be Johor’s equivalent to the KLCC.
When completed by 2028, it is expected to create some 60,000 jobs and contribute over RM9 billion to Johor’s economy.