[2024: Will New Home Prices Continue to Rise?]

With rising land tender prices, new home prices are set to trend upwards. Higher GLS (Government Land Sales) tender prices translate into higher launch prices.

A steady increase in land prices will also lead to higher EC prices.

Since 2010, the Singapore government has implemented twelve rounds of cooling measures to stabilise property price growth. The latest cooling measures introduced in April 2023 have kept new home transaction volumes subdued.

A recap of the cooling measures introduced by the government to moderate property price growth:

August 2010: Introduction of a 3-year Seller's Stamp Duty (SSD)

January 2011: 4-year SSD, LTV tightened to 60%

December 2011: Introduction of Additional Buyer's Stamp Duty (ABSD)

January 2013: Higher ABSD rates, tighter LTV limits for second and third properties, MSR capped at 35% of gross income, bank loan cap tightened to 30%

June 2013: TDSR introduced at 60%

August 2013: HDB loan tenure capped at 30 years

March 2017: SSD holding period shortened to 3 years

July 2018: ABSD rates raised, LTV tightened by 5%

December 2021: Higher ABSD rates, TDSR tightened to 55%, HDB loan LTV lowered to 85%

September 2022: Medium-term interest rate floor set at 3%, 15-month wait-out period introduced

February 2023: Revisions to Buyer's Stamp Duty (BSD) rates

April 2023: ABSD rates raised, foreign buyer ABSD doubled to 60%

Nevertheless, benchmark land tender prices are likely to push new home prices to new highs.

Experts predict that new home sales volume will hover between 7,000 and 8,000 units by the end of 2024, while average prices could grow by 4% to 6%.

Disclaimer

This information is provided in good faith and does not relieve any party from the responsibility of verifying information from relevant sources and/or seeking appropriate advice from relevant professionals, such as valuers, financial advisers, bankers, and solicitors.

For the avoidance of doubt, no responsibility is assumed for the accuracy, reliability, and/or completeness of the information provided above.