Executive Summary

The HardwareZone forum discussions reveal a dynamic Singaporean property market, with significant activity and varied opinions. The recent launches, particularly in District 15 (D15), have seen high demand, with EOK being a standout example, despite concerns about oversupply. Interest rates and their impact on affordability remain a hot topic. The community is actively analyzing market trends, potential cooling measures, and the role of property agents.

The forum highlights a mix of investor and homebuyer mentalities, with many focused on potential capital appreciation rather than rental yields. The discussions emphasize the importance of understanding market fundamentals, but also acknowledge the emotional aspects of property buying. There’s a growing debate about the sustainability of current price levels and the likelihood of government intervention. New launches in 2024 are seeing prices exceeding SGD 2,000 psf, with some even nearing *SGD 3,000* psf in certain areas.

Key Developments

New Launch Performance

Recent launches like Amber Park (AP), The Grand Dunman (GD), and EOK have been the focus of much discussion. Despite multiple launches in D15, the community doesn’t perceive an oversupply issue, citing the high percentage of owner-occupiers and strong sales figures. EOK, in particular, has seen rapid sales, with a significant number of units sold within days of launch.

“AP as the newest launch offering, takeup rate is pretty good, supply is low. Still got almost 18-24 months to go for the first batch to clear the TOP/SSD for the 3 new launches. All 3 new launches are differentiated products despite them being in D15. Oversupply? So far I don’t see any indication of it.” – drkcynic (28 Nov 2024)

The discussions also note that while some buyers may intend to flip their properties after the Seller’s Stamp Duty (SSD) period, many are likely to be long-term residents, especially for larger units in prime locations. The difference in product type is also a key factor in sales success.

Interest Rate Fluctuations and Repricing

Forum members are actively sharing their experiences with mortgage repricing, noting that banks are willing to negotiate to retain clients. Some users secured repriced rates of *2.5%* for a 2-year fixed term, with options to convert after 1 year.

“Eventually I have just settled to stick with SCB and reprice @ 2.5% 2yrs fixed with an option to convert after 1yr. Interestingly, the original reprice offer was slightly higher (2.55) and did not include the 1yr free conversion feature, but upon my second inquiry… their offer became better.” – ExEngineer (28 Nov 2024)

There’s a general awareness that interest rates are not guaranteed to remain low, with some speculation about rates potentially rising to *5%* in the future. This uncertainty affects investment decisions and long-term financial planning.

HDB Resale Delays

Several users reported significant delays in HDB resale application approvals, exceeding the usual 28 working days. These delays are attributed to increased workload and year-end backlogs, causing frustration and financial strain for those relying on sales proceeds for their next purchase.

“We submit the resale application on 6 Nov and likely my agent has told them to do the same soon but ended up they submit on 12 Nov 2024 so our clock started ticking from there. Till date still no sms.” – Lucky1115 (06 Dec 2024)

The delays highlight the importance of planning for potential waiting periods and having contingency plans, such as bridging loans, in place. Some users successfully escalated their cases to HDB for faster processing.

Community Insights

User Experiences

Users share diverse experiences, from securing good mortgage rates to navigating HDB resale delays. One user highlighted the frustration of having buyers back out of a deal after agreeing to an earlier completion date. Others have shared their experiences with banks offering better rates after they showed interest in other options.

“My buyer back out on the initially agreed completion date and I further escalated my case and they give us a date through still no sms yet” – Lucky1115 (06 Dec 2024)

Some users expressed concerns about the high prices of new launches and the low rental yields, questioning whether property investment still makes sense. There are also concerns about the impact of high-ceiling units on overall livability and the value of properties with unique features.

Tips and Recommendations

The community offers practical advice for navigating the property market. Key recommendations include:

• Negotiate with banks for better mortgage rates: Do not accept the initial offer, shop around and use competing offers to your advantage.
• Plan for HDB resale delays: Be prepared for potential delays in HDB resale approvals and have contingency plans.
• Focus on overall quantum, not just psf: Look at the total price, not just the price per square foot, when assessing property value.
• Understand the impact of SSD: Be aware of the implications of the Seller’s Stamp Duty on short-term property flipping.
• Consider the practical aspects of layouts: Evaluate whether high ceilings and other design features suit your needs.
• Do your own research (DYODD): Don’t blindly follow agents or online influencers, make informed decisions.

“Follow the actual numbers can liao. Alternatively you can choose to listen to 3 years of mindless ramblings from the in-house retirees on how the market is going to burn until your SSD is up. Your choice.” – drkcynic (01 Dec 2024)

There is also advice to look at the bigger picture and not just the immediate gains. Some users suggest focusing on long-term value and the unique attributes of a property instead of just short-term flips.

Important Considerations

The forum discussions raise several important considerations:

• Potential cooling measures: There is ongoing speculation about the government introducing new measures to curb property price increases, with suggestions ranging from increasing ABSD for PRs to extending the SSD period.
• The role of property agents: Concerns are raised about agents prioritizing their interests over their clients, particularly in new launch sales. Some advocate for banning agents from priority sales.
• Impact of market hype: The forum warns against being swayed by hype and unrealistic expectations, emphasizing the need for a rational and data-driven approach.
• Rental yield vs capital appreciation: The community acknowledges that current rental yields are low, suggesting that many buyers are focused on capital appreciation. This carries risk if prices stagnate.
• Long term maintenance costs: For freehold properties, there are worries about high maintenance costs that might affect resale values.

“Those who bought recent launch projects with a view to rent is asking for trouble lah.. That’s why those agents who bought in to choice projects only have one target in mind. Flip in 3 years time when SSD period is over.” – jeffong (30 Nov 2024)

Users also caution against over-leveraging, highlighting the importance of having a financial safety net. The discussions reveal a need to consider the long-term implications of property ownership.

Looking Ahead

The community anticipates further developments in the property market, particularly after the next general election. There’s speculation about potential cooling measures and their impact on prices and buyer behavior.

Users are closely monitoring upcoming Government Land Sales (GLS) and their potential effect on supply and prices. The launch of new projects in areas like Hougang and the Greater Southern Waterfront are expected to generate significant interest. There’s also discussion about whether prices will continue to rise, plateau, or potentially decline.

“Whatever happens likely after election. Now got no balls release new measures” – elvintay07 (02 Dec 2024)

The forum emphasizes the importance of staying informed, doing thorough research, and making decisions based on individual circumstances and risk tolerance. The community expects continued volatility and a need to adapt to changing market conditions.