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
An RHB Analyst View Of The Singapore Property Market (Post Covid-19): A Recap
As we head into the second phase of the circuit breaker in Singapore, things are looking to be slightly more…

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 How Condo Buying In Singapore Became A Game Of Luck

Singapore Property News Is Your HDB or Condo at Risk of a Sinkhole? 5 Signs to Watch Out For

Singapore Property News This 3-Room Flat in Toa Payoh Just Sold for $920K — Here’s What The Seller Could Have Made

Singapore Property News Would You Still Pay More For A Private Condo, If The EC Next Door Looked The Same?
Latest Posts

Landed Home Tours I Visited Freehold Terraces, Semi-Ds, and Detached Homes in the East Ranging from $2.5 Million to $11 Million

New Launch Condo Analysis Springleaf Residence Launches From $878K — Is This 941-Unit Mega Development Worth It?

On The Market 5 Spacious 3-Bedroom Condos That Cost Less Than You’d Expect (Under $2M)

New Launch Condo Analysis Canberra Crescent Residences Pricing Breakdown: A Price Comparison With Nearby Condos

Property Market Commentary 10 Most Affordable New Launch Condos Under $1.5 Million—Some Are Surprisingly Central

Editor's Pick Why I Might Still Pay $1 Million For A 50-Year-Old HDB—Even If Everyone Says It’s A Bad Buy

Editor's Pick A New River Valley Condo From Just $1.2M? Here’s What You Need To Know About River Green’s Pricing

Property Market Commentary Singapore’s Most Expensive Neighbourhoods Are Changing—4 Buyer Trends That Prove It In 2025

Property Market Commentary URA 2025 Draft Master Plan: 6 Under The Radar Changes You May Have Missed

Editor's Pick We Found Freehold Landed Homes From $4 Million In The East—But Would You Live Here?

Overseas Property Investing Why I Bought 7 Properties in Johor Bahru, and Will Still Buy More

Editor's Pick River Green Condo Review: Attractive Entry Price To River Valley From $1.2m

On The Market 5 Spacious Cluster Landed Homes That Cost Less Than You’d Expect (From $2.79M)

Pro Why The Interlace Condo Underperformed—Despite Its Massive Land Size And Large Units

On The Market Spacious 4-Bedroom In Orchard Is On The Market For $6.3M – With a Rare Standout Feature
