HardwareZone Forums Singapore Housing Market Update: Community Insights and Analysis (25 Nov – 23 Dec 2024)

Executive Summary

The HardwareZone forum discussions regarding the Singapore housing market reveal a complex landscape with ongoing debates about pricing, cooling measures, and investment strategies. Recent launches like EOK have seen strong initial sales, but concerns about potential oversupply and the impact of agent behavior remain prevalent. Interest rate fluctuations and the potential for new cooling measures, particularly those targeting speculative behavior, are also prominent topics. Key statistics mentioned include fixed mortgage rates around *2.55% and the sale of a Jadescape penthouse for a SGD 4.35* million profit.

The community is actively engaging with various viewpoints, from those advocating for long-term property investments to those concerned about overpricing and the potential for market corrections. The discussions highlight the diverse perspectives and strategies of Singaporean property buyers, ranging from seasoned investors to first-time homeowners. The forum also showcases the influence of property agents and financial advisors on buyer sentiment and decision-making.

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Key Developments

New Launches and Sales

Recent launches, particularly EOK (East Coast area), have seen significant sales activity. EOK reportedly sold *99% of its units, triggering discussions about potential price increases for remaining units. A second balloting round for 12 bounced units* at EOK attracted a large number of participants, demonstrating continued strong demand.

““And with another launch, it will push the sales of remaining units from Hillock Green and Lentoria to sell out soon.” – Advancer (25 Nov 2024)

Other developments, such as the 13 units at EOK being taken up after 800 expressions of interest, further emphasize the intense competition in the current market. However, some users have pointed out that some of these bounced units may have been from multi-purchasers.

Interest Rates and Refinancing

Discussions about mortgage rates are frequent, with users sharing experiences and advice on securing competitive rates. Fixed rates around *2.55% for a 2-year period are mentioned, with some banks offering better rates for loan sizes above SGD 500,000*.

“>SGD 500k wise, banks are friendlier to give a good rate.” – dan1982 (26 Nov 2024)

Users also discuss the possibility of repricing or refinancing after the lock-in period, suggesting waiting 5-6 months before exploring options with other banks. Some users have successfully negotiated better rates by demonstrating that they are considering other banks.

Cooling Measures and Market Speculation

There is ongoing speculation about potential cooling measures from the government. Discussions include possibilities such as increasing Additional Buyer’s Stamp Duty (ABSD) for PRs, lowering Loan-to-Value (LTV) ratios, and extending the Seller’s Stamp Duty (SSD) period.

“Some u tubers say cooling measures coming in 2025 60% loan only for first timer?” – ThinkCarefully (08 Dec 2024)

Some users believe that the government is likely to implement cooling measures after the next election, targeting issues such as runaway new launch prices and HDB resale prices caused by the PLH model. There are also calls to address loopholes such as the 99-1 decoupling strategy.

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Community Insights

User Experiences

Users share various experiences, including both successes and challenges in the current market. One user recounts their experience of securing a *2.5%* fixed rate after negotiating with their bank, highlighting the importance of shopping around. Another user details the stress of dealing with a buyer who backed out of an agreed completion date, illustrating the potential difficulties of property transactions.

“Eventually I have just settled to stick with SCB and reprice @ 2.5% 2yrs fixed with an option to convert after 1yr.” – ExEngineer (28 Nov 2024)

Some users express frustration with delays in HDB approval processes, with some waiting longer than the standard 28 working days. There are also anecdotes about agents prioritizing certain buyers, leading to discussions about fairness and market transparency.

Tips and Recommendations

Forum users offer practical advice on various aspects of the housing market. For those considering refinancing, it is recommended to start exploring options 5-6 months before the end of the lock-in period. It’s advised to use any better offers from other banks to negotiate with the current bank.

“If the other banks give you a better rate, use this rate to ask UOB to match ot better.” – dan1982 (26 Nov 2024)

Users also suggest focusing on overall quantum rather than just price per square foot (psf) when comparing properties. For those considering new launches, there are warnings about potential overpricing and the need to consider rental yields.

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Important Considerations

Users highlight several key considerations when navigating the Singapore housing market. There are warnings about the potential risks of buying new launch properties with the sole intention of renting them out, as current rental yields are low, around 2-2.5%. The potential for market fluctuations and the impact of cooling measures are also emphasized.

“Current nett rental yield really cui. 3/4BR mostly 2-2.5% nett yield nia Thats why nobody talk about rental yield liao.” – DevilPlate (29 Nov 2024)

Users express concern about the possibility of oversupply, particularly in areas with multiple new launches. There is also a discussion about the long-term implications of lease decay and the potential for HDB leases to be reduced to 70 years. It’s important to be aware of the potential for delays in HDB approvals and to plan accordingly.

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Looking Ahead

The forum discussions indicate a degree of uncertainty about the future of the Singapore housing market. Users are closely watching for potential cooling measures and their impact on prices. The upcoming 2025 GLS (Government Land Sales) is also a point of interest, with discussions about how new launches may be priced and how they will impact the market.

“2025 gls is OUT” – Rxgn (06 Dec 2024)

The community expects a continued focus on balancing affordability with market stability. Some users predict that prices will continue to rise, while others believe that a market correction is imminent. The potential for increased competition in the resale market, particularly from agent-owners, is also a concern. The discussions underscore the need for careful planning and due diligence when making property decisions in Singapore.