09/09/2026
Private property prices over the last few years have been insane.
Just last year, you could buy a new launch project in Tampines at an average of around $2,200 psf.
But fast-forward 12 months to this year, and a similar project in the same area is going for an average of around $2,500 psf.
Thatโs a $300 psf increase in just one year.
And hereโs the interesting part โ there are resale properties nearby going for only around $2,000 psf.
So the key question is:
If youโre entering the market at these high prices, how confident are you that you have a clear exit strategy in the future?
Nobody has a crystal ball.
But if you understand these 4 key fundamentals behind property prices, you can make a much more informed decision.
Number 1 โ Demand vs Supply
Weโre seeing projects selling like hotcakes, with some selling more than 90% on Day 1.
But hereโs the question:
Will there continue to be enough buyers in the future? Thatโs the demand side.
At the same time, you need to look at how many properties have already been built โ and how many more are coming. Thatโs the supply side.
And if you know where to look, especially at population and household growth, you can get a better sense of where demand may be heading.
Number 2 โ Timing the Market Cycle
If you donโt already know, Singaporeโs property market moves in cycles.
One of the best ways to understand the current cycle is to look back at what happened in previous cycles โ what triggered them, how prices responded, and how the market eventually turned.
Because history may not repeat itself exactly, but market cycles often rhyme.
So yes, prices may look high today.
But the more important question is:
Which part of the market cycle are we in, and how should you position yourself within that cycle?
Because the goal isnโt simply to buy. Itโs to understand when and why youโre buying, so that you can position yourself for a better exit in the future.
Number 3 โ The Current Pricing Correction
Yes, you heard that right. There is actually a pricing correction taking place in the market, despite the high psf prices weโre seeing today.
And part of this has to do with the governmentโs ongoing policies to keep Singaporeโs housing market sustainable.
It may sound contradictory. How can prices be at record-high levels, yet there still be a pricing correction happening?
The answer lies in understanding how the policies are affecting land prices, developersโ costs, pricing strategies and ultimately what buyers are willing to pay.
These corrections happen from time to time and understanding where we are in the current correction could make a big difference to your entry and exit strategy.
Number 4 โ Future Buyersโ Purchasing Power
We know that demand matters.
But hereโs the bigger question:
Where will the purchasing power of your future buyers come from?
Because when you eventually sell your property, your buyer needs to be able to afford your selling price.
So you need to understand how future buyers can move from a lower property quantum to a higher one over time.
This is where the 4Ps Capital Building Cycle comes in. It helps you understand how buyers build their capital and purchasing power, allowing them to eventually move into higher-value properties.
And ultimately, these are the buyers who may become your future exit buyers.
Because I always say:
Buying is easy. Exiting is the difficult part. You may be able to afford a property today. But if youโre already thinking,
โWho is going to buy this from me five years from now?โ
โ then youโre asking the right question.
Thatโs why I offer a complimentary 1-to-1 property consultation for buyers who want to understand their potential exit strategy before committing to a property.
During the consultation, weโll look at these 4 key factors together:
1. Demand and supply.
2. Market cycles.
3. Ongoing pricing corrections.
4. And most importantly, the future purchasing power of your next buyer.
More importantly, weโll apply these factors to your specific property, budget and investment horizon โ so you can make a more informed decision instead of simply buying based on todayโs price.
Because the question isnโt just:
โCan I afford to buy this property today?โ
Itโs also:
โWill someone be able to afford it from me tomorrow?โ
So if having a clear exit strategy is one of your biggest concerns when buying property, simply click the link below to book your complimentary 1-to-1 consultation with me.
Letโs work through the numbers and see whether the property youโre considering has a clear path to exit.
Wayne Soon
Real Estate Investment Planning & Advisory
HP: 8810 5478
