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The Singaporean government has implemented several measures to regulate the real estate market and deter speculative buying, making it a crucial factor to consider when investing in condos in Singapore. These measures, collectively known as the property cooling measures, have been put in place over the years to ensure a stable market. One of the main measures is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may affect the short-term profits of condo investments, they ultimately contribute to the long-term stability of the market, creating a more secure investment environment. This makes Singapore an attractive location for condo investments, with projects such as Singapore Projects providing excellent options for prospective investors.
for 2-beddersVivian Wang / EdgeProp SingaporeThe EdgeProp Singapore Property Market Outlook event on Sunday, Feb 16, spurred discussions on how new property cooling measures, incoming housing supply from government land sale (GLS) sites and Build-To-Order (BTO) launches, as well as Budget 2025 announcements could impact the real estate market.The panel of three industry experts comprising Alan Cheong, executive director of research and consultancy at Savills Singapore; Wong Xian Yang, head of research, Singapore and Southeast Asia at Cushman & Wakefield; and Song Seng Wun, Singapore economic advisor at CGS International — moderated by EdgeProp Singapore CEO Bernard Tong — discussed the possibility of new cooling measures affecting the HDB resale market.The possibility of new property cooling measures, incoming housing supply from GLS sites and BTO launches, as well as Budget 2025 announcements impacting the real estate market were among the top points discussed at EdgeProp Singapore’s Property Market Outlook event on Sunday, Feb 16.The panel of three industry experts comprising Alan Cheong, executive director of research and consultancy at Savills Singapore; Wong Xian Yang, head of research, Singapore and Southeast Asia at Cushman & Wakefield; and, Song Seng Wun, Singapore economic advisor at CGS International, participated in a panel discussion moderated by EdgeProp Singapore CEO Bernard Tong.The event, which was organised by EdgeProp Singapore, took place at the Elta sales gallery, a new 501-unit project jointly developed by MCL Land and CSC Land Group. The sales gallery opened for public preview on February 7.According to media reports and market data, government land sale sites and Build-To-Order launches could potentially impact the real estate market. During the event, the panelists discussed the possibility of these developments leading to new property cooling measures. Cheong suggests that if the government were to implement any cooling measures, it is likely that they would be applied uniformly across the residential market. He adds that the measures could also focus on the HDB resale market, which forms the “floor” of the housing market in Singapore. According to Cheong, a surge in price growth in the HDB resale market could potentially lead to upward pressure on prices in the private housing segment.Wong also shares his thoughts, stating that the government may consider adjusting the seller’s stamp duty (SSD) and introducing tougher loan restrictions. Meanwhile, Tong notes that the government has plans to inject a strong pipeline of GLS and BTO supply into the market in order to meet housing demand. According to him, the 1H2025 GLS programme will consist of 10 sites on the Confirmed List, which could yield 5,000 new homes. In addition, HDB plans to offer 19,600 BTO flats in 2025.Under the new BTO classification, newly launched Prime and Plus BTO flats will take about 14 years to enter the resale market. According to Cheong, the impact of these developments on prices will only be felt much later on. Wong adds that prices in the resale market tend to follow project completions and HDB estates completing their minimum occupation period (MOP). Both the panelists believe that project completions are more likely to affect prices, as opposed to the pipeline of GLS sites that are up for tender each year.Despite this, all three panelists acknowledge that the recent success in the new launch market is indicative of strong buyer confidence for the projects that are set to hit the market this year. Elta, for instance, drew in about 4,500 visitors within the first three days of its public preview opening. Other new launches that have experienced strong selling rates include The Orie (86% at launch) and Bagnall Haus (63% at launch).Read also:Budget 2025: More than 50,000 new HDB flats to be launched in the next three yearsSong of CGS International opines that prospective buyers are still positive about the possibility of making a profit when they eventually sell their properties. According to him, this can be attributed to a stronger job market, which has increased property owners’ confidence to upgrade. During the panel discussion, he also weighed in on Budget 2025 and its potential impact on the property market. With Singapore seeing a relatively strong economic recovery post-pandemic, he believes that the surplus of the government will give way to more handouts, as 2025 is an election year.At the event, the panelists also took questions from the audience. While discussing the rental market and its forecast for this year, some participants questioned whether the residential property market is currently in a “euphoric” phase. In response, Cheong stated that this sense of market exuberance will likely subside as developers strategically time the launch of new projects. He adds that several launch-ready projects are located in neighbourhoods that haven’t seen a new launch in several years, and that demand tends to build up over that time.Several investors also sought the panelists’ opinion on the rental market in 2021, which has been relatively slow since its peak two years ago. In response, Cheong pointed out that while the total number of expatriates in Singapore has declined over the past year, there has been an uptick in the volume of rental transactions. This is due to renters deciding to stop flat-sharing and finding their own accommodation due to falling rents. However, Cheong notes that this was offset by layoffs among technology and finance companies this year, which could moderate rental price growth.During the event, Tong also presented a session of EdgeProp’s Master Plan Master Class. He covered upcoming transformation plans in Clementi and Jurong East. According to him, once the second phase of the Cross Island Line (CRL) is completed, an existing MRT station (West Coast) will turn into an interchange. “Historically, MRT interchanges tend to have a positive impact on surrounding property prices,” he says.Transformation plans in Clementi include the redevelopment of Clementi Stadium and the installation of more than 6.6km of cycling paths throughout the area. Tong also observes that housing demand in Clementi could potentially benefit from the progressive development of the Jurong Lake District and the new jobs that are set to be created in the nearby Tuas megaport, Tuas Biomedical Park, Jurong Island, and Jurong Innovation District.Based on data compiled by EdgeProp Singapore, the average age of existing condos in Clementi is about 17 years. Tong notes that new projects in Clementi have seen strong capital gains in recent years. For instance, Clavon has seen a 24% uptick since its launch, while The Clement Canopy has experienced a 43% price growth since launch. Both projects are located in the vicinity of Elta.The data comes from EdgeProp Singapore’s suite of property tools, which could help owners, buyers, and sellers understand market and price trends, such as HDB resale prices, analytics of profitable transactions, and upcoming GLS sites. You can access the latest listings for Elta properties, or use our other tools such as Ask Buddy, which lets you know if you are looking at the right price for condominiums, and generates price trend graphs for new launch condos in District 5, as well as properties that have had the most profitable transactions in the past year.