What next for Singapore housing market after July 6 cooling measures?

Get The Property Insights Serious Buyers Read First: Join 50,000+ readers who rely on our weekly breakdowns of Singapore’s property market.

Residential property investment sales have collapsed in Singapore after another series of housing curbs halted ‘en-bloc’ redevelopment deals. The last round of cooling measures for the Singapore housing market took place just more than 3 months ago on July 6 and ever since that day speculation about when the next crash will occur have been rife. Many investors hoped that the market was resilient enough to withstand a major failure. But that was not to be as merely 2 redevelopment sales worth S$353 million were finalised in the third quarter of this year, down from the impressive S$3.8 billion worth of transactions of the second quarter according to Cushman & Wakefield Inc.
The calm before the storm
In May this year, it was reported that the Singapore housing market was once again expanding after a 4-year slump in property prices. Demand was on the increase with residential construction also rising along an improved homebuilder sentiment. Once adjusted for inflation, house prices increased by as much as 5.2% during 2017 and Q1 of 2018 according to the Urban Redevelopment Authority. Home buyers regained faith in the market, financial institutions enjoyed an upsurge in business as more individuals required home financing, eager to invest in their dream homes.
The crash was a long time coming
According to Christine Li, head of research for Singapore at Cushman “the collective sales market was decimated after the recent cooling measures”. The prices of private homes increased at a snail’s pace after the additional curbs were enforced. During July this year, the Singapore government took steps to cool down the market after a precipitous rise in en bloc sales during the first half of the year. The recoil in prices following a 4-year slide fuelled a host of belligerent bids from property developers which led to an eruption of en bloc sales – a strategy employed by a group of property owners who group together to sell whole apartment buildings at a time. This means homeowners get an increased payoff for their property, in some cases it can easily be double the market value. The government’s new rules resulted in a raising the buyer’s stamp duty, making it increasingly more expensive for developers to redevelop old properties.
More from Stacked
Why 4,580 Homeowners Have Negative Cash Sales Despite High Property Prices
The CPF Board said this week that around 4,580 Singaporeans couldn’t refund the full amount of CPF they used for…

Property Market CommentaryWhy Knowing The Singapore Property Cycle Can Make You A Better Investor
by SeanNew rules, new risks
Under the new rules, individuals looking to take out their first home loan faced increasingly stringent loan limits, increasing the need for a lump cash sum. Foreign investors in the residential property market also came face to face with a higher stamp duty which looks to impact house sales and prices significantly. Not to mention, the recent news of the new policy on shoebox units could also possibly have an even higher impact on the Singapore housing market prices as developers now have to build larger units, which are traditionally harder to sell. This could put a dent in profitability, leading to a bigger drop in en bloc deals and less cash in the market.

Source: Bloomberg
This is not the country’s first property market collapse and will more than likely not be the last. It is still early days after the collapse and forecasters are yet unable to predict what long-term impact the latest crash will have on the overall property market in Singapore. What can, however, confidently be ascertained is the fact that investors will be significantly more hesitant in parting with their money in the foreseeable future.
As always, feel free to reach out to us at hello@stackedhomes.com or leave a comment down below!
Stanley
Stanley loves crunching numbers in excel and analysing them. Naturally, he helps Stacked Homes generate articles based on his analysis as much as he can. When he's not using Excel, he enjoys watching movies and eating chocolates.Read next from Singapore Property News

Singapore Property News The Trick to Seeing Through a Condo Showflat (Most Buyers Never Do This)

Singapore Property News So Is The 99-1 Property Split Strategy Legal Or Not?

Singapore Property News Higher 2025 Seller’s Stamp Duty Rates Just Dropped: Should Buyers And Sellers Be Worried?

Singapore Property News They Paid Rent On Time—And Still Got Evicted. Here’s The Messy Truth About Subletting In Singapore.
Latest Posts

New Launch Condo Analysis This New 376-Unit Condo In Sembawang Might Be The Best Pick For Young Families: Here’s Why

Landed Home Tours Where To Find Freehold Semi-D Landed Homes From $4.4m: Touring Gilstead Road

Overseas Property Investing Can You Really Buy A House In Italy For €1? Here’s What Singaporeans Should Know

On The Market 5 Cheapest 5-Room HDB Flats Near MRT Stations From $550k

Pro Why Seletar Park Residence Underperformed—Despite Its District 28 Location And Large Unit Sizes

On The Market Inside A Luxury Waterfront Home at The Residences At W Singapore Sentosa Cove

New Launch Condo Analysis Singapore’s Tallest New Condo Comes With the Highest Infinity Pool: Is The 63-Storey Promenade Peak Worth A Look?

Property Market Commentary We Tracked The Rise Of Million-Dollar HDB Flats By Estate — And The Results May Surprise You

Editor's Pick LyndenWoods Condo Pricing Breakdown: We Compare Its Pricing Against Bloomsbury Residences, Normanton Park & One-North Eden

Property Market Commentary 2-Bedder vs 2+Study Units: Which Condo Layout Has Better Returns Over The Last Decade?

Homeowner Stories Does The “Sell One, Buy Two” Strategy Still Work In 2025? 3 Real Stories From Singapore Homeowners

Editor's Pick Where $4 Million Semi-Ds Sit Next To $40 Million GCBs: Touring First Avenue In Bukit Timah

New Launch Condo Reviews Transforming A Dual-Key Into A Family-Friendly 4-Bedder: We Revisit Nava Grove’s New Layout

On The Market 5 Cheapest HDB Flats Near MRT Stations Under $500,000

Editor's Pick The Robertson Opus Review: A Rare 999-Year New Launch Condo Priced From $1.37m
