Will Singapore’s property prices fall this year?

The surge in property prices through the year saw 2021 come to a close with the implementation of cooling measures. Despite the newest round of housing policies potentially deterring speculation in the residential market, prices of the real estate asset class are likely to stay strong this year.

For one, the noteworthy hike in the additional buyer’s stamp duty (ABSD) is not applicable to homebuyers who would be acquiring their first property. Besides, while it might have dampened home investors’ enthusiasm in the property market, Singaporean married couples could obtain ABSD remission. That is, if they are able to sell their first property within 6 months after the date of purchasing a completed property, or the date when the Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC) is issued. Hence, the cooling measures might not not have an absolute impact on the property market.

Work-from-home and hybrid work arrangements, which have become prevalent in the face of the covid-19 pandemic, have also led many to finding themselves needing a larger space to accommodate their lifestyle and work-related needs. Additionally, with borders progressively opening up, expatriates would be able to return to Singapore, thereby boosting the property market.

The low land supply against the high demand for properties, coupled with the rise in costs pertaining to construction and manpower, would also continue to drive property prices. Looking to enter the property market? Wonder Homes can help you with your property investment journey. Check out our website at https://www.wonderhomesg.com, for more information, and drop us a message!