The dynamic landscape of the Singapore property market is set for another intriguing chapter in 2024. And as we welcome the new year, it’s crucial to understand the recent changes that have shaped the market. Particularly, how the property cooling measures and a resilient demand in 2023 left a mark on the sector.
Property cooling measures and rising prices in Q1 2023
The influence of property cooling measures introduced in December 2021 and September 2022 was evident, creating a moderating effect on the market.
However, we saw a resurgence in property prices in Q1 2023, primarily driven by robust demand from Singapore citizens purchasing homes for their own stay.
Responding to the renewed acceleration in property prices, the Singapore government took proactive steps in April 2023.
Higher Additional Buyers’ Stamp Duty (ABSD) rates were implemented to temper the housing market, targeting both owner-occupants and tenants while curbing investment demand from both foreign and local investors.
Revised ABSD Rates
The revised ABSD rates impacted foreigners the most, with ABSD rates doubling to 60% from the previous 30% for the purchase of any residential property.
Here are the revised ABSD rates as of April 2023
|Buying 1st Residential Property
|Buying 2nd Residential Property
|Buying 3rd and Subsequent Residential Property
|Singapore Citizen (SC)
|Singapore Permanent Resident (SPR)
|Foreigners buying any residential properties
|Entities buying any residential properties
The market impact of the ABSD hike
Unsurprisingly, the ABSD hike had pronounced effects on property prices, with the Core Central Region (CCR) experiencing the most significant impact.
CCR Condo average PSF and transaction volume in 2023
Source: Ohmyhome Research
Prices in the CCR dropped from an average of $2,733 per square foot (psf) to a low of $2,471 psf in October.
Overall condo average PSF and transaction volume in 2023
Source: Ohmyhome Research
Conversely, the Rest of Central Region (RCR) and Outside Central Region (OCR) witnessed a steady rise in prices, albeit with an overall decrease in demand.
This discrepancy can be primarily attributed to residential buyers relocating to new homes, largely unaffected by the ABSD. In contrast, properties in the CCR are often purchased for investment, incurring higher ABSD rates. With foreign investors likely draining away, prices have fallen as a result.
Should you buy or sell condo in 2024?
If you’re looking to sell your condo in the CCR, don’t worry. This does not necessarily mean you’ll have to sell at a low, as there are still ready buyers in the market who are willing to pay for a condo in the central region. Parents looking to move closer to their children’s schools will do almost anything to lock in the right address before the Primary 1 registration period.
And if you’re looking to buy a home, remember that buying low doesn’t mean much when you don’t sell at the right time.
Let us help you price your property right and time the market well
Get professional advice from our Super Agents on when you should sell your current home and buy your next one. Drop us a message on WhatsApp and we’ll schedule a non-obligatory chat with one of our agents, or chat with us via the Live Chat at the bottom, right-hand corner of the screen. We promise you’ll be speaking with a real person.
Better yet, get matched to your dream home
Save your time searching for the right home. Let us do it for you. Simply fill up this form and our MATCH algorithm will find all the available condo rental listings for rent and send them straight to your WhatsApp.
As we anticipate the unfolding trends in the Singapore condo market in 2024, it’s evident that government measures play a pivotal role in shaping the trajectory. Navigating through these changes requires a keen understanding of the market dynamics and a strategic approach, ensuring investors and homeowners alike can make informed decisions in the ever-evolving real estate landscape.