Reinstate the Seller’s Stamp Duty and lower the duration? onada
The recent Property Market Outlook event hosted by EdgeProp Singapore on Sunday, Feb 16 sparked discussions on the possibility of new cooling measures, incoming housing supply from government land sale (GLS) sites and Build-To-Order (BTO) launches, as well as the impact of Budget 2025 announcements on the real estate market. A panel of three industry experts, Alan Cheong from Savills Singapore, Wong Xian Yang from Cushman & Wakefield, and Song Seng Wun from CGS International, shared their insights on the current state of the market. EdgeProp Singapore CEO Bernard Tong moderated the discussion.
The event was held 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 Feb 7.
In January, the government hinted that it was open to implementing more property cooling measures and that it was not yet time to remove existing measures. This announcement came amidst a 256% yearly increase in new private residential unit sales, excluding executive condos, in the previous month.
According to Cheong, if new cooling measures are introduced, the government is likely to implement a measure that applies uniformly across the residential market. The panel also discussed the possibility of measures targeting the HDB resale market, which forms the “floor” of the housing market in Singapore. Wong pointed out that a price surge in the resale market will add upward pressure on private housing prices, and the government may consider adjusting the seller’s stamp duty (SSD) and imposing tougher loan restrictions.
On the other hand, Tong highlighted the government’s plan to introduce a significant pipeline of GLS and BTO supply to meet housing demand. The 1H2025 GLS programme consists of 10 sites on the Confirmed List, which could yield 5,000 new homes, and HDB plans to offer 19,600 BTO flats in 2025. Cheong noted that under the new BTO classification, newly launched Prime and Plus BTO flats will take about 14 years to enter the resale market, and their impact on prices will only be felt much later. Wong added that prices in the resale market are more affected by project completions and HDB estates reaching their minimum occupation period (MOP) than the pipeline of GLS sites up for tender each year.
Despite the possible implementation of new cooling measures, all three panelists noted strong buyer confidence in the current market, as evidenced by the successful launches of Elta, The Orie, and Bagnall Haus, which had selling rates of 86% and 63% at launch, respectively.
The discussion also touched on the potential impact of Budget 2025 on the property market this year. According to Song, with Singapore’s strong economic recovery since the recession caused by the Covid-19 pandemic, the coming year, being an election year, may bring more government handouts funded by government surpluses. The panelists also took questions from the audience, including inquiries about the current “euphoric” phase of the residential property market.
Cheong observed that developers are strategically timing the launch of new projects, which could help dissipate the sense of market exuberance. He also noted that some launch-ready projects are in neighborhoods that have not seen a new launch in several years, leading to pent-up demand. In response to questions about the rental market, Cheong pointed out that while there was a decline in the total number of expatriates in Singapore in the past year, there was an uptick in the volume of rental transactions. This was partly due to falling rents, which encouraged some renters to find their own accommodation rather than sharing. However, layoffs in the technology and finance sectors could moderate rental price growth this year.
Before making a condo investment, one must also consider the potential rental yield. Rental yield refers to the yearly rental income as a percentage of the property’s purchase price. In Singapore, rental yields for condos can significantly differ depending on factors such as location, property condition, and market demand. Typically, areas near business districts or educational institutions have a high rental demand, resulting in better rental yields. To gain a better understanding of a particular condo’s rental potential, it is advisable to conduct thorough market research and seek advice from real estate agents. Additionally, checking out Singapore Projects can also provide valuable insights.
During the event, Tong also presented a session of EdgeProp’s Master Plan Master Class, covering upcoming transformation plans in Clementi and Jurong East. He highlighted the completion of the second phase of the Cross Island Line (CRL), which will add a new MRT station (West Coast) and turn the existing Clementi station into an interchange. Tong noted that MRT interchanges tend to have a positive impact on surrounding property prices. The transformation plans for Clementi include the redevelopment of Clementi Stadium and the installation of more than 6.6km of cycling paths.
The panel also noted the potential housing demand in Clementi from the progressive development of the Jurong Lake District and the creation of new jobs in the nearby Tuas megaport, Tuas Biomedical Park, Jurong Island, and Jurong Innovation District. Tong shared data from EdgeProp Singapore showing that the average age of existing condos in Clementi is about 17 years, and recent new projects in the area have reaped strong capital gains. This includes Clavon (24% uptick since launch) and The Clement Canopy (43% price growth since launch).
The event also featured a session showcasing EdgeProp Singapore’s suite of property tools, including information on HDB resale prices, analytics of profitable transactions, and upcoming GLS sites. Attendees had the opportunity to ask questions and get insights from industry experts on the property market.