Wait and See approach for SG Property Market?

Planning A Wait See Approach For Singapore Property Market

Planning a Wait & See approach for Singapore Property Market?

Planning a Wait & See approach for Singapore Property Market?

With limited supply and rising interest rates, in such market situation whether selling to upgrade is it still a wise choice.

Planning A Wait See Approach For Singapore Property Market Ryan Lee Kk From Buyhomenothouse 1

Hi I am Ryan, today I want to share a story with you and maybe you can gain some insights from it.

Planning A Wait See Approach For Singapore Property Market Ryan Lee Kk From Buyhomenothouse 2
Planning A Wait See Approach For Singapore Property Market Ryan Lee Kk From Buyhomenothouse 3

Recently, I’ve just met my client for a property review and he is planning to upgrade but at the same time, he is concerned about the rising interest rate as well as the limited supply be it in the new launch or resale condo market. With all these sentiments, naturally he told me he wants to adopt a “wait & see approach” but this might not be the best approach and here’s what I shared with him.

Planning A Wait See Approach For Singapore Property Market Ryan Lee Kk From Buyhomenothouse 4

With the new cooling measures, downgraders’ are reluctant to sell now as there’s a new 15 months wait out period before they can buy a resale HDB.

Planning A Wait See Approach For Singapore Property Market Ryan Lee Kk From Buyhomenothouse 5
Planning A Wait See Approach For Singapore Property Market Ryan Lee Kk From Buyhomenothouse 6

Furthermore, the rental market is red hot now and it is difficult to secure a rental unit. This will give you a first mover advantage if you decide to sell now.

Moving on, you can see from the chart, there will be a sharp increase of TOP Ready units in the year 2023. This will mean that you will have more competition to find a resale buyer as they have more choices available for them.

Planning A Wait See Approach For Singapore Property Market Ryan Lee Kk From Buyhomenothouse 7
Planning A Wait See Approach For Singapore Property Market Ryan Lee Kk From Buyhomenothouse 8

Next, based on my data, the main bulk of buyers were from HDB upgraders for the last 2-3 years. However, there will be a 49.1% drop of MOP flats from the year 2023 onwards. This means that the demand from the HDB upgraders segment will shrink significantly.

As the new launch condo supply is at an all time low, buyers will shift their focus on finding a resale unit instead.

Planning A Wait See Approach For Singapore Property Market Ryan Lee Kk From Buyhomenothouse 9

With all these factors adding up, this explains why private condo resale prices have been escalating to an all time high up by 49% since the year 2011.

Planning A Wait See Approach For Singapore Property Market Ryan Lee Kk From Buyhomenothouse 10
Planning A Wait See Approach For Singapore Property Market Ryan Lee Kk From Buyhomenothouse 11

Lastly, MAS Managing Director Ravi Menon mentioned that with more inflows of new money to Singapore may prompt another round of cooling measures and this will affect the affordability of buyers such as lesser loan amount or more cash & cpf for downpayment.

Planning A Wait See Approach For Singapore Property Market Ryan Lee Kk From Buyhomenothouse 12
Planning A Wait See Approach For Singapore Property Market Ryan Lee Kk From Buyhomenothouse 13

In summary, with too much information and news available will somehow “paralyse” a buyer or seller to make an informed decision.

Do contact me if you want to have a more in-depth discussion and I hope to have a chance to work with you. See you. =)

If you wish to learn more about Singapore’s Property Market, do follow me, Ryan from Buyhomenothouse, to get more tips and updates!

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