In recent years, the Singapore government has introduced multiple cooling measures, increasing investment barriers while prioritizing owner-occupiers. Data from 2020 to 2024 shows that owner-occupied private homes have grown twice as fast as investment properties, signaling a shifting market trend.
Rising Demand for Owner-Occupied Homes, Tougher Investment Landscape
According to Singapore’s Ministry of National Development:
📊 2020:
- Owner-occupied private homes: 236,000
- Non-owner-occupied units: 166,000
📊 2024:
- Owner-occupied units increased by 27,000 to 263,000
- Investment units grew by only 8,000 to 174,000
This trend clearly indicates that government interventions have made investment properties more costly, shifting the market toward owner-occupiers. For buyers, making the right decision under evolving policies is now more crucial than ever!
ABSD Hike: A Surge in Investment Costs
To further curb speculative buying, the government raised Additional Buyer’s Stamp Duty (ABSD) in April 2023, making property investment significantly more expensive:
🟢 Singapore Citizens
- 2nd property: 20% ABSD
- 3rd & subsequent properties: 30% ABSD
🟡 Permanent Residents (PRs)
- 1st property: 5% ABSD
- 2nd property: 30% ABSD
- 3rd & subsequent properties: 35% ABSD
🔴 Foreigners
- All residential properties: 60% ABSD (Previously 30%)
These changes shrink investment returns and significantly increase holding costs. So, is now the right time to buy or should you wait?
Buy Now or Keep Waiting?
Given the current policy climate, buyers must be more strategic. Consider these three key factors before making a decision:
1. Owner-Occupier vs. Investor – Define Your Goal
For Owner-Occupiers: Policies favor homebuyers. If you have a genuine housing need, now is a good time to buy. We can help you find the best home, whether it’s a school district property, CBD apartment, or a serene condo.
For Investors: Extra caution is needed. Consider longer return cycles and tax implications. We provide in-depth market analysis to help you minimize risks and identify high-growth potential properties.
2. Tax & Loan Planning
Factor in total property costs, including ABSD, BSD, and loan interest rates.
Check loan eligibility, including LTV ratios and repayment capacity.
We offer cost calculations and purchase optimization strategies to avoid unnecessary expenses.
3. Market Trends & Future Planning
Short-term: Cooling measures have slowed property price increases.
Long-term: Singapore’s real estate remains a stable appreciating asset, especially in prime locations.
Our experts track real-time trends to guide your decision with data-driven insights.
Make Smarter Property Moves with Us
Whether you are buying a home or investing long-term, we provide expert guidance to ensure you make the best decision.
Our Professional Services Include:
✅ Tailored Property Matching – We find the best options based on your needs.
✅ Tax & Loan Planning – Comprehensive cost analysis and strategic advice.
✅ Full-Service Support – From viewings and negotiations to contracts and consultations.
📩 Thinking about buying? Contact us today for a hassle-free, expert-guided property journey!
