I Waited for Property Prices to Drop — and Ended Up Paying More
Buying property should always be done when you’re financially ready; but this can also become a gamble if you take it too far. If you try to wait simply to roll the dice on a possibly better price, AQ’s story shows what can happen. Here’s how she learned to avoid market timing attempts in future:
A gift for a newly engaged daughter
When AQ’s daughter got engaged in 2022, the family decided they wanted to buy a property as a gift for her. In 2023, Sceneca Residence launched at Tanah Merah MRT, and it seemed like the perfect option: “
We were living in Tampines and our house was only under my husband’s name, so I could still buy a property under my own. And just right Sceneca Residence was launched, and it’s at Tanah Merah MRT. That is very close to Tampines, and also to Bedok where I work. We prefer to live near our daughter, so we planned to buy this for her, and she could move in when it was ready.”
However, AQ was shocked at the launch prices, which had risen significantly since COVID. At over $2,000 psf, she felt it was excessive for a project outside the central areas. Based on our checks, launch prices averaged $2,076 psf for Sceneca Residence. AQ sought a second opinion. A colleague’s agent friend explained that prices had risen due to housing shortages caused by COVID disruptions. But AQ and her husband felt that these prices were overheated and decided not to buy.
Getting it right at first
AQ’s hesitation seemed validated when, in April 2023, the government introduced new cooling measures. Prices at Sceneca Residence briefly dipped, with some units going for under $2,000 psf.
“We reconsidered our decision, but I think the cooling measures gave us false confidence. I felt quite clever at thinking that I ‘read the market’ and that my prediction of the unsustainable prices was right. So I told my husband we should wait till the end of the year, as cooling measures usually take some time to bring down prices.”
At this point, AQ believed her patience would be rewarded. She expected that waiting a few more months would mean an even better deal.
Unfortunately, the market moved in the other direction. By the following year, prices at Sceneca Residence had not only recovered but climbed above $2,100 psf. What was left on the market were mostly larger units, which exceeded AQ’s budget. Eventually, she had to compromise. AQ bit the bullet and bought at around $2,115 psf, beyond her initial budget. To make matters worse, the unit was on a lower floor and was the same size as the one she had originally wanted. By waiting, she ended up with a worse deal.
“The worst part is that actually I was right and the price went down, but I waited some more and I ended up going from right to wrong.”
Property market rebounds can be sharper than you think
While AQ doesn’t consider the experience a disaster, she admits she would advise others not to repeat her approach:
“Even if the price drops, it drops by a small amount, but if it goes up, it can go up until you cannot buy anymore, so if you really want to buy, it’s better not to take the risk.”
Her story illustrates the danger of trying to time the market. Prices may dip for a short while, but the longer you wait, the higher the risk of being priced out of the unit you want. Prices don’t just move down, they also move up – and often much faster. AQ’s story shows that “wait and see” can quickly turn into “too late.”
This isn’t to say you should rush to buy before you’re ready
By all means, wait if you don’t yet have the financial security to buy. But once you do have the means and you find the right property, reconsider the temptation to gamble further. It’s hard to predict where exactly the bottom of the property market may be, even if prices do drop.
Also, a quick reminder: while property prices may fall due to cooling measures, those same cooling measures may impose new problems like tighter loan restrictions, or higher stamp duties. This could more than offset any “savings” you get from waiting.
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