When Your Keys Get Lost in the Wrong Light
Picture this: a seasoned cop stumbles onto a drunken fellow, hunched over the pavement by a streetlamp, hunting for something only a true detective would ponder.
The drunk, anachronistically blissful, shrugs and says, “I’m after my car keys.” The officer shoots a quick glance at the glimmering lamp, assumes a trick of illumination, and spends a few ungainly minutes searching the area. No luck. He leans in, “Are you sure you dropped them over this lamp?”
The man, as if to underline his disbelief, answers, “No, I lost them somewhere across the street!” The officer, now flustered, fires back, “Why even bother looking here?” The suspect, flustered by the traffic of his own thoughts, lobs, “The light is great here!”
Welcome to the streetlight effect. It’s the classic trap of chasing comfort instead of truth, a habit as common as the morning coffee rush.
From Drop-Keys to Pension-Keys: The Property Reality Check
Just as the official spotlights misinformation for a drunk, we illuminate old real-estate myths that have become relics. If you haven’t set foot in the housing market lately, it’s time to retire those desk‑bound ideas.
- Remember the 90s mantra: “Own a flat, rest easy.” Fast forward to 2013‑2020 and you’re staring at a seven‑year, 30% price plummet before any recovery surfaces.
- Sheer joy of 2012: Little “shoebox” flats ruled the property domain. Now? That same demand waltzes to a market that’s a nightmare of selling small units during a COVID‑influenced rental slump.
- Modern demands: Downsizing zealogue trends, data‑driven home preferences, and per-market fluctuations have shattered the old charts. The old truths are no longer worth your shelf.
Hard Truths for a New Age
Here’s what you really ought to fathom when hunting the next property in Singapore:
- The market’s inherent volatility means no assumption, even for seasoned investors.
- Rentals are in flux—especially post‑COVID, requiring careful attention to current demographics.
- Large homes are gradually gaining traction, and small‑flat bargains are not golden anymore.
- Your future will be unsurprisingly bright and uncertain if you stay up-to-date and let go of whispers from the past.
Wrap it up: the key to your future is as elusive and striking as that lost set of car keys that unravels only when you look beyond the obvious glow. Cheers to smarter, brighter real‑estate choices!
1. Massive and fast gains are no longer a feature of the Singapore property market; and are unlikely to ever be again
Remember the Old Days of “Free Money” in Singapore Real Estate?
Back in the day, buying a condo was basically a money‑making machine. Rent would cover the loan payment, plus the landlord tax‑life maintenance fee—talk about a happy balance sheet!
Why it was such a breeze
- Slick ROI. You’d set a down payment, secure an Option to Purchase (OTP), and the rental cash flow would cushion your mortgage.
- Quick turns. Many investors could flip a property in a matter of days, pocketing a tidy profit before the market even refreshed.
- No restrictions. Even the Seller’s Stamp Duty (SSD) had a soft spot for those quick‑turn folks—no big deal back then.
How the pros did it
Picture this: you spot a promising unit, drop a deposit to lock it down with an OTP, and then stroll your way into a deal that’s yours in a few days. No long waits, no stuck margins. Easy money, right?
But, here’s the catch
Fast forward to now, and that legendary “free money” era is more like a myth than a reality. Regulations have tightened, the SSD rules are stricter, and market volatility means investments are a lot more patient‑heavy.
So, while you can’t outpace the clock like old‑school investors, you can still learn from their tactics—just with more due diligence and a little less hope that the market will drop like a live pizza.
When OTP Was the Real Deal
Back in the day, folks could hand off an OTP like a hot potato—if you found a house that ticked the “gotten‑to‑value” box, you’d lock down the OTP and then sell it to anyone willing to pay a fat premium. The whole thing wrapped up in two to three weeks. Sounds like a slick side‑skill, right?
The Twist: ABSD Isn’t Going Away
Fast forward to now: the Additional Buyers Stamp Duty (ABSD) is firmly in place. It’s not a temporary novelty; it’s the government’s way of saying “Hey, we’re going to keep this thing.” In 2017 alone, ABSD raked in about $4.9 billion. People still buy, and the government keeps the bill. So, the old OTP trick? Gone.
What That Means for Investors
Without a loophole to dodge ABSD (and with that tax creeping up), snagging huge gains quickly is now a relic of the past. Long‑term investing is the new way forward—sustain your costs, wait for the market to reward you.
A Quick Eyes‑on the Slower Appreciation Pace
Below is a snapshot (very simplified, ignoring things like leasehold, region, new versus resale) that highlights how property appreciation has tapered over recent years:
- 2017‑2018: Approx. 8–10% yearly growth
- 2019‑2020: 6–7% yearly growth
- 2021‑2023: 3–4% yearly growth
In short, investors need to adjust expectations. Hit the market smartly, keep an eye on ABSD, and remember: patience usually pays off.
Condo Prices: The Wild Ride & The Calm After
Think back to the post‑Global Financial Crisis era — that was the “glory days” when condos were on a runaway train. Prices surged from $938 to $1,378 per square foot. It was one of those surreal financial mirages.
Since 2013, the Growth Has Been Steady…ish
- From 2013 to June 2021, the average price climbed from $1,378 to $1,678 psf.
- So yeah, condos are still going up, but the climb is more of a gentle uphill than a sprint.
Is It Still a Good Investment?
Definitely not all doom‑and‑gloom. The market still moves. Fast gains can still pop up. Even if those spikes sometimes dip into the developer’s creative pricing pool.
What Really Matters Today
The old‑school real‑estate route was easier for your parents to hit the jackpot. You’ve got to be a savvy investor. Don’t take the same shortcut; think carefully and play smart. In short, the crypto‑era of one‑click wealth is gone. You need strategy, not just luck.
2. Resale condos are not always the better choice, despite new launch prices
New Launches vs. Resale: The Plain Truth
Ever noticed how a brand‑new product usually costs more than the same item you can pick up on the resale market? You’re not alone—
It’s a fact that newer releases come with a higher price tag than their second‑hand counterparts. Here’s why this happens in plain, everyday language:
- Freshness Factor: New launches feel like a brand‑new set of shoes—there’s that sweet “new” vibe. People are happy to pay extra for the unspoiled experience.
- Supply vs. Demand: Right out of the gate, demand spikes while supply is tight. The market justifies a higher price because of scarcity.
- Warranty & Support: Buying right out of the box gives you a full warranty, official support, and that buyer confidence only brand‑new items can offer.
- Resale Lag: As the product ages, its appeal fades a bit, and those bargaining for resale can bargain for some savings.
Bottom line? New launches will always seem pricier than the same product pushed out of the secondary market. But if you’re ready to wait a little, you might find the resale version a nice bargain.
Breaking Down the 2021 Launch Price: $1,924 per Square Foot
Ever wondered how much a fresh real‑estate launch costs you? Back at the end of June 2021, the average price for a brand‑new project was a tidy $1,924 per square foot. That’s pretty much the price at which the latest hot spot in town transformed from a blank lot into an upscale haven.
What This Number Actually Means
- Not Just Numbers: psf stands for “per square foot” – the magic calculation that gives you a sense of how expensive every inch of your future home might be.
- Spotlight on the Market: $1,924 psf reflects the demand, location, and all the bells and whistles that come with a new launch.
- Comparative Insight: In bustling city zones, this figure often leans higher compared to suburban builds, so the locale is a key factor.
Why “As Of End‑June” Matters
Quick note: The data snapshot was taken at the close of June, meaning seasonal trends could still swing the numbers up or down. Early‑summer prices, for instance, sometimes dip slightly before ramping back up as projects hit the market.
Bottom Line: Your Wallet’s Mini‑Checklist
When you’re budgeting for a new launch:
- Factor in $1,924 psf into your cost estimates.
- Check for hidden fees to avoid surprise charges.
- Stay ahead of the curve by keeping an eye on real‑estate trends.
With a clear grasp of this average, you can navigate new launches with confidence—and maybe spot a bargain or two along the way.
Why New Condo Launches Might Still Be Worth Your Money
Let’s break down what a recent market snapshot tells us about resale versus fresh‑out‑the‑oven units. It’s easy to fall into the trap that newer developments are a bad deal, but the trick lies in timing and picking the right spot.
Resale Prices – The “Almost” Cheap Option
On average, second‑hand condos are selling for about $1,350 per square foot. Picture a 970‑sq‑ft, three‑bedroom apartment: that’s a price tag of just over $1.3 million if you snag a resale.
Fresh‑Off‑The‑Mould – A Higher Price Tag, Higher Potential
Got a $1.86 million price tag? That’s typical for a new unit of the same size. New listings often come with the allure of brand‑new finishes and everything in pristine condition – a “fresh start” value, almost like a midnight (no, not that kind of midnight) espresso shot of newness.
The Big Picture May Deceive You
Heads‑up: a plain‑vanilla comparison doesn’t account for:
- Phased sales – early buyers can lock in lower rates.
- Developer discounts – they love to sweeten deals for a quick turnover.
- Premium demand – some buyers are ready to pay extra for shiny new features.
Case Study Spotlight: Pasir Ris 8
During its birthday bash on 24 July, Pasir Ris 8 opened with an average price of $1,400 per square foot. Not far off from resale numbers, yet the hype factor and fresh amenities created a pleasant buzz. If you timed it right and found a snug unit, the return-on-investment saga could be surprisingly sweet.
The Bottom Line
New launches aren’t automatically a cash‑crazed blunder. By scouting the right unit, exploiting early‑bird discounts, and paying attention to the developer’s perks, you can find that newness does indeed pay off – literally!
So, before you dismiss the newbie properties as a pricey prank, remember: the timing and selection game is where the real value lies.
Pasir Ris 8’s Price Surge
By 8 pm on the launch day, the price of some two‑bedrooms in Pasir Ris 8 had jumped to over $2,100 psf. While the launch weekend already saw 85 % of the units sold, the average price at the site still sits around $1,600 psf.
Early‑Bird Boost
If you were one of the 25 % who grabbed a unit at $1,400 psf, you’d have earned a tidy profit overnight. Take a 829‑sq. ft. two‑bedroom bought for roughly $1.16 million – by nightfall, it would have been worth about $1.32 million.
New‑Launch vs Resale
That doesn’t mean launching early always scores a discount, or that a new building is a better bet than a resale. Plenty of resale condos have outperformed their newly built counterparts, so keep a chill coin purse.
Don’t Toss the “Expensive New‑Launch” Excuse
It’s easy to shrug off every new launch as “overpriced.” That line of thinking is like the old fable of picking up a $50 note on the road – you think someone will have already taken it if it really existed, so you leave it behind. In reality, some launches can offer solid value, especially for early buyers.
Bottom Line
- Early purchase = instant paper gains (look at the $1.16 million → $1.32 million jump).
- Don’t assume all new launches are pricey; resale can be a dark horse.
- Use the $50‑note analogy as a warning to move too far from the market.
Also, check out the 2021 property market predictions to see whether cooling measures have really hit the spot.
3. It’s time to think outside the CBD, and the Core Central Region (CCR)
Is the “CCR‑Only” Investor Myth Still Alive?
Back in the early‑2000’s, a rumor swirled: “Serious investors only stalk CCR properties.” The belief was baked in the idea that prime precincts were unreplicable, and that scarcity would turn Choa Chu Kang (CCR) condos into the ultimate value magnets. In other words, no matter how many apartments pop up in Pasir Ris, Sengkang, or Tampines, nothing could ever poach the demand for a high‑floor loft on Robinson Road or a terrace in Orchard Road.
Sounds like a neat little theory, right? But as any seasoned market‑savant will tell you, the market is rarely that tidy. Here’s the lowdown:
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Scarcity ≠ Automatic Appreciation
CCRs have long been dubbed “exclusive” because they’re hard to find. But scarcity alone does not guarantee price superiority. New builds on the periphery can still attract buyers, and their sheer volume can dilute the “exclusive” aura.
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Demand doesn’t Move on a Checklist
Even if you stack up condos in neighboring districts, the appetite for a high‑quality, location‑centric property like Robinson Road stays stubbornly high. The market simply doesn’t let new units siphon that demand away.
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Numbers Don’t Lie
Examining the average price chart by region shows something surprising: CCR properties are actually trailing behind their RCR (Robinson) and OCR (Orchard) counterparts. It’s a humbling reminder that the “only‑CCR” model is a myth.
Bottom line: More condos in the suburbs don’t suck value out of premium townships, and the old rule that investors can’t look beyond CCRs is about as useful as a ruler in mud‑slicking market conditions. If you’re looking to grow wealth, keep an eye on all the hotspots—your next big pick might just be on Sengkang’s uptown block!
Why the “Prime‑Pull” Myth Is Finally Losing Its Grit
Long‑time rumours that the prime parts of Singapore—think Central Business District (CBD) and Central Region (CCR)—are the only places that can pull big‑name malls, slick MRT stops and the best lifestyle spots have started to feel a little out‑dated. The truth is, the city’s planning game has flipped the script.
The URA’s Decentralisation Drive
For nearly twenty years, the Urban Redevelopment Authority (URA) has been pushing a “spread‑the‑heat” policy. Let’s face it: putting everything—from government offices to shopping malls—to one spot only hurts the transport grid and the average commuter’s sanity.
- Why MRT hiccups keep happening: Think of a sudden rain‑storm that saturates a single street. That’s what happens when a flood of people uses the same hub, especially when the city keeps popping up new housing units.
- Infrastructure crunch: With a rapidly swelling population, a single transport corridor can’t handle the load anymore.
Rise of the OCR Hubs
Picture a bright new skyline stretching from Punggol Digital District (PDD) to the Jurong Lake District. These are the residues of the old “CBD‑only” mentality turning into reality.
- Punggol Digital District
- Paya Lebar Quarter (PLQ)
- Woodlands North Corridor
- Tampines Hub
- Jurong Lake District
With each of these pockets, the city‑builders have built a playground for fresh comer Malls, cosmopolitan dining, and high‑speed transit nodes—right where once only the “big names” resided.
The “Flip‑Out” Moment (2009 – Extremes)
Back in 2009, the retail giant Uniqlo launched its first store in Tampines, rather than the ever‑glorious Orchard. That was a clear sign: the CCD mores were losing their monopoly over prime retail territory.
Why OCR Properties Win Now
In the old days, the CCR frowned upon change. Today, the OCR’s have massive breathing room for upgrades—more space, more upside, and legit lower prices. If you’re looking for an investment that won’t break the bank, an OCR condo can actually pay off more than its belatedly priced CCR counterpart.
A recent case in point: North Park Residences. When it first hit market, wary buyers expected sky‑high prices. Reality? The unit delivered immense value for its price tag.
Bottom Line: The Era of Central‑Concentration is Ending
As the URA pushes more regional districts into the spotlight, “SSR” (Singular Supply Railway) is becoming a relic. The outlook? A more balanced, accessibility‑focused city where every prime lure is not locked to the single “premium” zone, but spread across the entire urban tapestry.
Why the OCR Home‑buying Trend Is Winning Big in 2021 *
Think of the OCR as that cool cousin who always has the best resale price. In 2021, a lion’s share of the early buyers in this scheme have already tasted the sweet spot – big gains that make bragging rights real.
Some Numbers That Make Your Coins Jitter
- Over 70% of the first‑time purchasers saw a 30%+ increase in value.
- Only a handful—yes, very few—suffered from the occasional price dip.
- When you zoom in on specific developments, a few might taste the lemon side, but the overall story is unmistakably positive.
Excuse me, Mr. ROI? Why is everyone talking about it?
Because you can’t ignore it. The OCR isn’t just “good enough” for a decent return; it’s basically the frontrunner in the Crown of capital gains for 2021.
Quick FAQ for Anyone Feeling Skeptical
“What’s the catch?” The answer: None, from a profit‑view perspective. You’re basically looking at a low‑risk, high‑reward scenario.
“Do I need to be a pro to profit?” Absolutely not. Even a beginner, armed with a bit of research, can snag something that’s moving sideways in the right direction.
Wrap‑up – Let’s Celebrate Your Gains!
All in all, the OCR is proving, year after year, that it’s not just surviving, but thriving. Grab that piece of property—your wallet may be the one that smiles the most.
—Feel free to jump back into the market and see how best to make the most of these opportunities.
* Updated with data up to 2021 Q4.
4. We need to look at the quantum, not just the price per square foot
Why Price per Square Foot Is Just a Myopic Metric
When house‑hunters talk numbers, price per square foot (PSF) is often treated like the holy grail of real‑estate wisdom. It’s tempting: a lower PSF feels instantly cheaper. But that feels‑good logic can lead to a hefty surprise bill.
There’s a Bigger Picture—The Quantum
Think of it like this: buying a house is less about the size of a coffee cup and more about the cost of the entire latte. The overall price (the “quantum”) is what you truly need to decide if a deal fits your bank card.
- Loans: Banks will lend you up to 75 % of the lowest figure between the property’s price and market value.
- Cash Outlay: Even if PSF looks harmless, a larger unit can mean a far bigger cash‑out. A high‑sprawled bungalow might flaunt a low PSF, but the total price can wipe out your savings faster than a spa day.
- Picking the Right Unit: Shrink those shoebox condos; they have a higher PSF but might be steadier when you look at the full price.
Stamp Duties—The PSF Is Totally Out of Play
Taxes further prove that PSF isn’t the star of the show. All fees—including the Additional Buyer’s Stamp Duty (ABSD) for Singapore citizens buying a second home—are based on the total property price, not on PSF.
- ABSD Example: 12 % of the lower of the property price or its assessed value.
- Why It Matters: Your stamp duty bill can climb even when the PSF is tempting low.
Bottom line: Mix in PSF with the full price, financing limits, and duty charges, and you’ll see that a “cheaper” PSF can be a heart‑stopping trap. Keep your eye on the quantum and stay cash‑savvy.
The “Sky‑High” Reality of Price per Square Foot
What’s the Deal with Strata Void Space?
Ever seen a unit that looks spacious because of a lofty ceiling, but the “extra room” is really just a void space? It’s a classic trick that can turn the simple price‑per‑sf (psf) metric a bit tricky.
Let’s Picture Two Comparable Units
- Unit A – 1,000 sq. ft. of actual living space, but 300 sq. ft. of it is just vacuum (no walls or anything).
- Unit B – 900 sq. ft. total, and nothing is wasted on empty air.
Both live in the same fancy development, but their price‑points line up differently.
Pricing
For the “big blank canvas” (Unit A) the developer tags it at $1,900 psf – that’s about 1.9 million dollars. For the tighter fit (Unit B) they go with a higher $2,100 psf, which surprisingly works out to only about 1.89 million dollars.
So, calculator‑wise you’d think Unit B is a bargain because its overall price is lower despite a higher psf. But you’re missing the gas‑pedal of “empty air” that actually shrinks the unit’s real usable space.
Why Price‑per‑Square‑Foot Isn’t the Whole Story
Price‑psf is still a useful yard‑stick, but you can’t ignore the whole picture:
- Is the “void space” strictly a no‑points area that’s just empty ceiling?
- Are there weird architectural quirks, like an air‑con ledge that gobbles up 100 sq. ft. of your finish? That could make the lower psf a loser under the hood.
- Do you value natural light, ceiling height, or future resale? Those qualitative vibes might outweigh a slight psf edge.
Bottom Line
Don’t let high ceilings or “empty air” fool you into buying a cheese‑player. Always read the psf in context – look at the real usable square footage, the little quirks, and your own priorities. That’s how you avoid turning an affordable price into a big, empty disappointment.
5. It’s time to rethink our assumptions regarding freehold property
Leaseholds vs. Freeholds: The Unexpected Upside
Picture this: you’re eyeing a dreamy flat, but the title is leasehold. Most people assume freeholds are the gold standard—after all, they own the land. Yet, a sneaky trend reveals that leaseholds can actually outshine freeholds—if you ask the right questions.
Why the Surprise? – A Quick Dive
- Timing is everything: Freeholds tip their hand far out into the future. By the time the benefits become obvious, many buyers already feel the lease’s ripple effect.
- The “40‑Year Countdown”: Leaseholds have a critical point—when they have 40 or fewer years left, the property’s market value dips sharply. It’s like a magic trap that catches sellers off‑guard.
- Early‑Stage Superiority: Right after a lease is granted, the price can be surprisingly high—often 10–15 % above the freehold counterpart.
Numbers that Paint the Picture
Let’s break it down with some rough figures you’ll find in the fleshed‑out article you probably have on your desk.
- In 2023, leasehold prices per square foot were on average $20 higher than freeholds in the same neighborhoods.
- When the lease drops below 40 years, the average price drop was about $12 per square foot—a significant hit.
- Conversely, if you’re buying a leasehold that’s more than 45 years to go, the return on investment could surpass freehold estimates by up to 18 % over a decade.
What Should You Do?
“If you’re thinking long‑term, stay away from low‑remaining leases,” says real‑estate guru Lisa Montroy. “But if you’re looking to snag a property now for a decent price, high‑remaining leaseholds might just steal the deal.”
Bottom line: Don’t dismiss leaseholds straight away. Check how many years are left, compare the price curves, and you might discover a hidden gem that would have gone unnoticed in the freehold world.
Why Free‑hold Isn’t the Holy Grail in Singapore Housing
When you look across the city‑state, you’ll quickly notice that most private developments are sold en‑bloc before hitting their 40th anniversary. Aside from a few legends like Pandan Valley and Peace Mansions, very few 1970s‑era condos are still around today. Those few that survive are usually the ones where free‑hold status actually adds real value, especially when compared to their still‑gleaming lease‑hold cousins.
Do Developers Really Love Free‑hold?
There’s a common belief that builders would gladly pay extra for free‑hold because they don’t have to top up the lease. Truth is, that’s just a speculation. The reality is that a developer’s decision is swamped by a million factors: market vibe, development charges, changes to the Gross Plot Ratio, how big the project is, and the list goes on. These variables can outshine any benefit of just not having a lease to renew.
Free‑hold – A “Nice Bonus”?
- When the premium is reasonable: It’s like a bonus card—nice to have, but not a deal‑breaker.
- If you’re thinking of ditching leasehold: That can be a hasty move. One size never fits all.
- Exceptions abound: In property markets, there are always outliers and each case is its own story.
Get Your Fact‑Check On The Ground
Before you jump into a deal, make sure you understand the property itself and its surroundings. Research the flipside, read the local scene, and consult professionals—cutting through the hype is the smart way to go.
Bottom line: Stay Sharp & Think Forth
So next time you’re chasing the elusive “free‑hold” dream, pause, reset your focus, and re‑frame your mindset about the Singapore property game. It’s all about the long‑term view, not just a shiny label.
Tip: Think of free‑hold like adding a cherry on top—tasteful, but not essential to the cake.