New home prices will trend higher with the land bid prices going up. Higher GLS price by tender translates to higher launch prices.
Steadily increasing land prices will result in higher EC prices.
Since 2010, the Singapore government has introduced twelve rounds of cooling measures to moderate price growth. The recent cooling measure in April 2023 saw new home transactions staying muted.
*flash estimates
The following cooling measures were implemented to moderate rising real estate prices:
- Aug 2010 – SSD 3 years
- Jan 2011 – SSD 4 years, LTV 60%
- Dec 2011 – ABSD introduced
- Jan 2013 – ABSD raised, 2nd & 3rd loan LTV tightened, MSR lowered to 35% of income and 30% for bank loans
- Jun 2013 – TDSR 60%
- Aug 2013 – HDB loan 30 years
- Mar 2017 – SSD 3 years
- Jul 2018 – ABSD raised, LTV tightened by 5%
- Dec 2021 – Higher ABSD, TDSR 55%, HDB loans 85%
- Sep 2022 – Medium Term rate 3%, 15 mths wait out period
- Feb 2023 – Change in BSD rates
- Apr 2023 – ABSD increased, foreign buyer ABSD doubled to 60%
Despite that, benchmark land bid prices could send new home prices to a new high.
ERA forecasts new home transactions to hover between 7,000 and 8,000 units while average price could grew between 4% and 6% by end 2024.
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