Ready to Dive into the 2022 Home‑Buying Adventure?
2022 is almost here, and by January most people will be rebooting their house hunt. After a wild couple of years juggling COVID and sky‑high prices, it’s time to arm yourself with knowledge and a grin.
What’s on the Menu for 2022 Buyers?
- Mortgage Rates Kinda Dance – Expect rates to swing like a pendulum. Keep a close eye on the Fed announcements and lock in early if you’re ready.
- Supply is Staying Squeezed – Homes are still in short supply, so expect some fast‑paced bidding wars.
- Affordability Tricks – With pricey listings, look for smaller lots or up‑size after you buy.
- Tech Tools Keep Rising – Virtual tours, AI‑based search filters, and e‑closing are becoming the norm.
- Neighborhood Now Means More Than Just A Street – Schools, walkability scores, and future development plans matter more than ever.
How to Beat the Game
- Do Your Homework – Track interest trends and local market data. Use free tools like Zillow or Redfin to spot patterns.
- Get Pre‑Approved (Fast‑Track) – Secure a pre‑approval before you start touring; it shows sellers you’re serious.
- Negotiate Wisely – In a tight market, price matters but so do contingencies. Think about closing costs and repairs.
- Leverage a Great Agent – A savvy agent who knows the local scene can recommend hidden gems.
- Use Technology – Schedule virtual home inspections and remote signatures to save time.
Keep your sense of humor sharp and your expectations realistic. 2022 may still feel like a roller coaster, but with the right prep, you can ride it to the grand prize—your new home!
1. COV, and hence valuations, will become a factor if buying resale homes
Why Your Resale Home Might Ask for More Cash Than Expected
In 2021, roughly one‑third of resale flats sold for more than their official appraisal. That extra amount is what Cash Over Valuation (COV) is all about.
And guess what? It’s not limited to public housing—condos are pulling in hefty COVs too.
If you’re eyeing a resale property in 2022, arm yourself with these two key take‑aways:
- Cash over the official price isn’t covered by your mortgage. Whether you go the bank route or the HDB loan, the extra money must come straight out of your pockets. For example, a price of S$600 000 against a valuation of S$550 000 means you need an additional S$50 000 in cash.
- Impossible to scrape this from your CPF, and banks won’t lend you to cover your down‑payment. The safest bet is having this cushion ready in advance.
Bottom line: When you’re about to buy a resale, make sure you’ve got the extra cash at hand—you don’t want to be caught off‑guard by a price tag that’s a little higher than the market’s sweet spot.
Navigating Resale Real Estate: A Quick Guide to Banks, Rates, and Value
Why Resale Deals Can Be a Price Puzzle
When you’re eyeing a resale property, you’ll notice that it usually is priced lower than its “market value.” This makes buyers camp the idea that you’re getting a steal. However, it can also add a layer of uncertainty because the property’s actual value might not line up with what a bank will accept as collateral.
Bank Choices: Different Valuations, Different Interest Rates
To secure a loan, you’ll likely need to shop around. Some banks will appraise the unit at a higher price—meaning you’ll borrow less—but they might also tack on a higher interest rate. Other banks may ask for a lower valuation, letting you borrow more but offering a sweeter rate. Deciding which trade‑off to take can feel like picking the perfect slice of pizza.
Consider the Numbers
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Example #1: Resale unit priced at $600,000.
Bank A offers an interest rate of 1.7% but only accepts a valuation of $575,000. -
Example #2: Bank B presents a lower rate of 1.3% but requires a valuation of $550,000.
What’s the Real Cost? The Cash Outlay vs. Interest Rate
Here’s the deal: you’ll decide whether the $25,000 difference in cash outlay (the extra amount you’d need to front) is worth the slight boost in the interest rate.
Take a moment to line up the math—looking at total interest over the life of the loan, the monthly payment, and how much you’re actually borrowing. Sometimes the cheaper rate saves you a bundle in the long run; other times, the bigger upfront payment keeps you within budget.
Bottom Line: Flexibility is Key
Don’t be afraid to switch banks or ask for re‑appraisals if you see a better deal. The resale market can be a bit of a rollercoaster, but with the right information and a clear plan, you’ll land the home that’s a perfect match for both your wallet and your lifestyle.
2. Fewer new launches and a supply crunch gives the edge to resale sellers
What the Market’s Saying About New Launches in Singapore
Let’s break down the latest numbers on how many fresh cars are hitting the streets—and how that shapes the way buyers shop.
2021‑2022: The “New‑Launch” Sweet‑Spot
- 2021: About 50 brand‑new models rolled in across Singapore.
- 2022: A little tighter; only 41 new launches are projected.
That’s a 18‑percent dip in the sheer number of options. With fewer new models, cars that’s been on the busier side of the market might feel a bit…less crowded.
How the Numbers Stack Up
- Overall, 5,389 units are expected to be available this year.
- Breaking it down by region:
- Core Central Region (CCR) – 22 % of the units.
- Rest of Central Region (RCR) – 37 % of the units.
- Outside Central Region (OCR) – 41 % of the units.
So if you’re hunting for a brand‑new vehicle, keep an eye on the Core Central – it’s getting the leanest share, while the Outside Central Region is still harder to beat.
What That Means for You
- Expect tighter choices if you’re looking for a brand‑new model.
- The mix of regions means you’ll find the newest rides scattered across the city, with the biggest chunk out of Central.
- Fewer options can also lead to sharper price wars—so watch for bargains!
Bottom line: fewer launches but plenty of areas to pick from. It’s a market that’s reshaping itself—one “car launch” at a time.
Housing Market Gets a Reality Check
What’s Happening with Developers?
The Un‑sold Home Situation
Answer: The housing market isn’t a bottom‑price buffet anymore – the shelves are clearing, so upgrade or plant your feet for the next wave.
Good vs. Bad News
| Worry | Reality |
|---|---|
| Too many homes, flooding the market and squeezing prices | Fewer unsold units, which actually pushes prices higher |
Foreign Investors: Swipe Back In?
Think of it like a hipster dancefloor: a few rumors of a brand‑new gear, but new rules keep it in check.
Key Take‑away
What’s the Deal? Buyer Beware
Long story short: If you’re hunting for fresh gear, you might just have to look at the resale market. Sellers are sitting pretty—holding almost all the inventory—so they’re not coughing up a single penny.
Why the Price Stuck Tight?
- Supply is king: Everyone’s got the same cards in stock.
- Demand’s muted: Buyer interest is low, so sellers stay firm.
- Market dynamics: With no push, prices stay as high as they are.
Finding the Sweet Spots
Don’t lose hope—deals do exist. The trick is to dive deep and hunt hard. In 2022, monitoring resale boards, checking auctions, and flipping through forums can unearth a few bargains. Think of it as a scavenger hunt, but the treasure is a fully functioning (and maybe cheaper) card.
3. Normalisation of interest rates is likely to start in 2022
Why We’re Seeing Super‑Low Mortgage Rates
Picture the Fed on a downward‑sliding treadmill —they’ve been trimming interest rates like a chef slicing veggies to keep the economy hungry after the COVID crash. That’s why the average home‑loan rate is snug around 1.3% right now.
But the Treadmill Isn’t Endless
- If rates stay too low for too long, they can heat up the economy into a runaway inflation roller‑coaster.
- When the Fed reaches the “ebb” point, it’ll tighten the reins.
So, while homeowners are enjoying this sweet spot, the Fed is on a watch‑and‑wait vibe—just enough to keep the market in that delicate balance.
Interest Rates on the Move
Folks, the big news is that interest rates are about to step out of their hush‑hush mode—and that’s starting in 2022. Think of it as the first ripple in a big wave. The central bank will pace the hikes in tiny increments of 0.25 %, so you won’t feel the sting right away.
The First Hikes
- Early 2022: Expect the first gentle bump.
- Changes will likely come in quarter‑point steps.
- So, if you’re watching your mortgage, keep an eye on quarter‑point surprises.
How High Could They Go?
Remember when home loan rates were hovering around 2 % back in 2018? That was just before COVID‑19 hit the market. Fast forward to before the 2008 crisis, and rates ticked up to about 4 % on average. Don’t panic—scholars say we’re not getting anywhere near that 4 % mark anytime soon.
Tips for Homebuyers
- Opt for fixed‑rate loans—these lock in the lower rate for a longer stretch.
- Look into longer rate‑period packages to spread out potential hikes.
- Existing homeowners: consider refinancing to keep those rates as low as possible.
- Most importantly, chat with a mortgage broker—they’re the navigators who can steer you through the sea of rates.
Bottom line: The path to normalising rates is gradual, but staying informed and planning for fixed or longer terms can keep the house‑buying journey smooth and less costly.
4. Smaller projects going forward in 2022
Big Buildings on the Rise
2019‑2021: The Mega‑Development Era
During those years, the skyline was jacked up by a few show‑stopping projects. Think of the Treasure at Tampines and Normanton Park—both practically swimming in towers.
2022: The New Frontier
- Marina View – set to add around 905 units, turning the waterfront into the next upscale hotspot.
- Jalan Anak Bukit Land Plot – rumor has it will pop up with roughly 845 units, making it a hot‑spot for those hunting for a slice of the city’s future.
All said, the city skyline is looking more crowded than ever, and with these fresh projects, it’s about to get an extra dose of hustle and glamour.
What’s Brewing Beyond the Mega‑Projects?
While the headline projects continue to steal the spotlight, let’s take a quick spin through the less talked‑about but still worth‑checking small to mid‑sized developments. Think of them as the boutique corner of real estate—packed with charm, a bit snazzier than the mass‑market, and probably… just right for those who want a more personal vibe.
Spotlight on the Key Players
- Tanah Merah Kechil Link – Hey, the numbers are in: 265 units.
- Lentor Central – BIG HOOK: 605 units.
Why Some Folks Love the Smaller Scale
When you’re not juggling a sea of units, you get a chance for extra privacy—the kind of space where you can actually watch your neighbors take a break without feeling like you’re eye‑sight in a crowded laundromat. Flexibility is another perk: smaller communities often mean more tailored amenities that cater to the specific vibe of the residents.
The Flip‑Side: More Money, Less Glitz
On the flip side, smaller developments are a bit like a boutique coffee shop compared to a big chain: the price tag’s higher, and the facilities aren’t enough to flaunt every flashy feature you’d find in a mega‑complex. So, while they may not shout “luxury”, they do whisper a sweet secret of exclusivity and privacy that can be pretty priceless.
Bottom Line
Pick what feels right. If you’re after the full flourish of amenities, go big. If you’re after quieter neighborhoods where you can enjoy your own slice of privacy, the smaller condo projects might just be your next lucky find.
5. Demand will still be high in the Outside of Central Region (OCR)
2024 Housing Hype: OCR’s Comeback
Picture this: the OCR is back on the scene, but with a twist. We talked about its reign in 2021; the good news? That trend’s still alive—no changes in our outlook for the year ahead.
Launch Pulse
- Over 30 new projects are in the pipeline.
- Only about 11 of those will be in the OCR sweet spot.
Why HDB Upsizers Might Scratch Their Heads
We’re all about that three‑bedroom slice that falls within the $1.3‑$1.5 million bucket—a sweet spot for the OCR. Fewer OCR launches mean less diversity for folks hunting that perfect price point.
So, strap in: the OCR keeps its crown, but the market might feel a bit less balanced. Stay tuned, folks—your dream apartment hunt might take a tiny detour!
Three Brush‑Off‑MRT Condos That’ll Still Be a Bargain
When the market is blowing up, you want places that still feel like a steal. The OCR list is short‑handed, just three Executive Condominiums (ECs)—but that’s just fine. Here’s the low‑down:
- EC North Gaia – perched on Yishun Avenue 9. It’s a sweet spot for families looking for a fresh start.
- Tengah Garden Walk – city vibes and green streets. A good balance for those who want to stay city‑centered without the price tag.
- Upcoming Launch: Tampines Street 62 – new and getting ready to roll. Pss‑hst, it’s all about staying ahead of the curve.
Sure, none of these are next‑door to a MRT station. But in a market where price tags are practically sending out baby bombs, these units will stand out as the affordability champions of the year. We’re predicting demand to be higher than the number of coffee shops on a busy weekday.
6. HDB resale flats are likely to retain their momentum
Singapore’s Housing Market: Prices Rocking Their Highest Groove in Eight Years
Rumor has it that the HDB resale scene is stirring the biggest money pot in a decade. And guess what? The heat isn’t cooling down in 2022.
Reasons Behind the Price Party
Two hot topics are heating up the market:
-
Construction FOMO (Fear Of Missing Out) – COVID‑19 has turned a lot of builders into procrastinators, and buyers are panicking.
- Picture this: You’re all set, declaring “Yes, I’m buying!” but the construction crew keeps saying, “Sorry, can’t finish until… next month.”
- Because of these delays, many home seekers are ditching the “Build‑To‑Order” (BTO) plans for a ready‑made resale that feels safer.
-
Resale vs. BTO Debate – Around two‑thirds of BTO projects are running late thanks to COVID challenges.
- When the clock is ticking, people tend to opt for a move‑in‑ready resale rather than wait for a BTO launch.
What This Means for Potential Buyers
If you’re eyeing a new home, keep these points in mind:
- Resales are now more expensive than ever; budgeting needs a little extra wiggle room.
- Stay alert to BTO timelines – delayed launches could hurt your plans.
Bottom Line
In short, the housing market’s hotter than your morning coffee. With construction hiccups keeping buyers on the resale side and BTO projects facing delays, prices are poised to stay high for the rest of 2022. Keep your eyes open and your wallet ready — this is one market that’s definitely hot off the press!
Home‑Office Chaos: Why Singapore Just Can’t Figure Out the WFH Thing
Singaporeans are realizing it’s straight-up exhausting to have a whole household in the same living space while everyone tries to get work done. Picture this: your kid is in an online science lecture, the parents’ Zoom call is booming, and an older sibling is chasing a video call for a contract audit—all happening over your couch. It’s a recipe for distraction.
Why the “Rent‑from‑Reality” Plan Fails
- Stressful scenario: The lack of a dedicated workspace means everyone has to supplant each other’s focus. Productivity plummets.
- Noise levels: Shared rooms turn into a noisy battleground of overlapping audio.
- Family drama: When everyone’s on their phones, you lose privacy and personal space.
The Missing Ingredient: Renting Instead of Buying
When Singaporeans think about moving to a new place, renting often slips across the mind—because buying is seen as the ultimate status symbol. But outrightly wanting a default mate only feeds the frenzy for resale flats. Since new construction is inevitably delayed for due process, interests jump onto resale flat markets—like a house on the shift front.
Takeaway
The solution? Singapore needs to re‑imagine how we use our homes for WFH. Going for rentals that come with the flexibility of renovation timelines could be a game‑changer. Well‑planned space would break the monotony, let families breathe, and boost productivity—so we can focus on that bright future…and probably celebrate with a decent curry after an all‑day session of Zoom and study streams.
7. Property taxes are going up next year
What’s New for Your Flat’s Property Tax?
Singapore’s Inland Revenue Authority (IRAS) just recalculated the Annual Value (AV) of flats for 2022. The AV is the loan‑to‑rent number that determines how much property tax you’ll pay each year. The good news? The tax bump is tiny for most flats.
Small Shifts for Most 3‑Roomers
- Three‑room flats: +$8 to $14 per year
- Five‑room centers: +$21 to $26 per year
- Two‑room units: no additional tax
That’s roughly a 65% boost for 3‑room flats—good news for those who’ve been eyeing a new home. These increments are almost a drop in the bucket when compared to the current price tag.
Why the Numbers Matter
AV changes are tied to overall rental rates, covering both public and private housing. So if public housing rents tick up, your flat’s AV will adjust in kind—keeping taxes in line with the market.
Watch Out for the Prime‑Estate Types
Even though the average increase is modest, some premium rentals—especially in high‑end central CBD areas—could face steeper AV hikes. If you’re buying a high‑profile unit, keep an eye on your future tax bill. It could be a few extra dollars starting next year.
Bottom Line
Overall, the impact is gentle. Most families will see a few extra bucks on their tax, but the change is designed to match rental trends fairly. If you’re eyeing a prime property, double‑check the AV to avoid surprises.
8. The Core Central Region (CCR) may face slower sales
Foreign Investors Are Back—No ABSD? Nailed It!
Forget the hotline bling—foreign buyers are dialing into Singapore’s private property scene again, even if the ABSD (Additional Buyers Stamp Duty) is waving its 30% flag high. It’s like they’re saying, “Who needs a 30% extra tax when the skyline’s so dazzling?”
Back In The Day: The Circuit Breaker
- Remember the Circuit Breaker period? Chinese investors were snapping up Marina One units for roughly $20 million—and they did it all sight‑unseen. A bold move that sent a ripple through the market.
- They were circulation for the day, and the market? It felt like a roller coaster without seat belts.
March 2021: The Luxury Surge
- Fast forward to March 2021: luxury home sales clocked in at a staggering ten times higher than the year before.
- That buzz was all hype, all envied. Foreign buyers were revving up like a Ferrari at a leisurely Sunday drive.
ABSD Storm Coming…
Before the ABSD 30% measure dropped like a thunderbolt, the market was flashing salesman swagger. Now that the new rule is in place, the sentiment has shifted—fewer folks are following the wealthy bandwagon.
It’s like the doors to the penthouse just got a new lock. “The vacancy is real, the exquisitely plastered walls now demand more than just a stamp,” said one local developer.
Will the Market Beat the ABSD?
One thing’s for sure: the 30% ABSD is a pretty steep climb for most buyers. It’s going to take a while for the market to find its equilibrium. Until then, we’ll be watching how the affluent few navigate the coastal breeze of the new regulation.
So, hold onto your binoculars, folks—the foreign buyers are still in the game, even if they’re gently tipping their hats to the ABSD. Whether this new tax heads up a market reset? Only time—and a bit of Singapore charm—will tell.
Luxury Launch Discounts: The New Reality
Have you noticed the recent price plummet on high‑end launches? From the newly rolled‑out Perfect Ten to a flotilla of other premium projects that followed suit, the market is feeling the squeeze. Even though a handful of buyers still swoon over these glossy listings, the future is looking a bit tougher, especially in the coveted Holland V neighbourhood.
Why Buyers Are Feeling the Crunch
- Launch teams are now bundling discounts into their marketing mix to entice early‑adopters.
- With competition heating up, price‑cuts are the quickest way to hold a buyer’s attention.
- Those who can afford a flashy apartment are still looking forward to the likely adjustments that will come early next year.
What This Means for Future Buyers
- Expect fewer incentives when the market stabilises.
- Early‑bird buyers who miss out on the current discounts could find themselves paying a premium later on.
- Keep an eye on developments that promise future price shifts—the trick is timing.
So, if you’re eyeing a luxury launch, the lesson is clear: Act fast but also stay informed. Don’t wait too long or you might end up paying more for a place that’s still going to look great.
