From ABSD to TDSR to income ceilings, property today is less about “can I afford the house?” and more about “can I pass the rules?” If you’ve bought, sold, or even just thought about property in Singapore, you’ve felt it: Cooling measures are everywhere.
Now, heading into Budget 2026, property developers, consultants, and agents are speaking up. Their message is clear:
The market has cooled enough. It’s time to fine-tune, not freeze.
Let’s unpack what they’re asking for — and what it realistically means for retail investors and everyday Singaporeans.
Why Property Players Are Speaking Up Now
Singapore’s property market has gone through multiple rounds of cooling measures since 2010. These were meant to:
- Curb speculation
- Protect affordability
- Reduce systemic risk
And to be fair — they worked.
But the environment today is very different:
- Interest rates have already done the “cooling”
- Transaction volumes are down
- Some segments (especially luxury) are very quiet
This is why the industry is calling for adjustments, not rollbacks.
The Big One: ABSD on Foreign Buyers
What Is ABSD Singapore Today?
As of now:
- Foreign buyers pay 60% ABSD
- PRs and locals face progressively higher ABSD for second and third homes
This makes Singapore one of the most expensive countries in the world for foreign residential buyers.
Why Property Players Want a Review
Developers argue that 60% ABSD:
- Effectively locks foreigners out
- Hurts the luxury and prime segments
- Reduces liquidity for ultra-high-end homes
Example:
A foreign buyer eyeing a S$10 million Good Class Bungalow would need to pay S$6 million in ABSD alone — before stamp duty and legal fees.
For most, that’s a deal-breaker.
Why This Matters to Local Investors
Even if you’re Singaporean:
- Foreign buyers help set price benchmarks
- Their absence affects resale demand at the top
- Weak luxury demand can trickle down over time
Think of it like Orchard Road retail:
- Even if you don’t shop at luxury boutiques
- Their presence lifts the entire street
Will ABSD Be Cut? Realistically?
A full rollback is unlikely.
More realistic possibilities include:
- Targeted ABSD reduction for:
- Ultra-luxury homes
- Very high price tiers
- Temporary or conditional relief
- Differentiation between:
- Owner-occupiers
- Long-term residents
For retail investors, the key takeaway is this:
Any softening of ABSD would support prices — especially in prime districts.
EC Income Ceiling: Still S$16,000 — Is That Realistic?
Why This Is a Problem
The EC income ceiling has been stuck at S$16,000/month for years.
But today:
- Many dual-income households earn more
- EC prices are often S$1.3–1.6 million
- Monthly mortgage payments are high
This creates a strange situation:
- Families earn “too much” for ECs
- But may still find private condos unaffordable
A Very Singaporean Example
Couple in early 30s:
- Both working professionals
- Combined income: S$17,000
- One child, planning for another
They:
- Miss EC eligibility
- Stretch heavily for a private OCR condo
- Or delay upgrading altogether
Raising the EC income cap would:
- Help genuine upgraders
- Reduce pressure on mass-market private homes
Loan Caps: Are MSR and TDSR Too Strict Now?
Developers also want a review of:
- MSR (30% cap) for HDB/EC buyers
- TDSR (55%) for all borrowers
These rules:
- Are conservative by design
- But may disadvantage:
- Younger buyers
- Self-employed individuals
- Commission-based earners
With interest rates already high, some argue:
The market is already self-regulating.
Why This Matters for Investors
If loan rules are slightly relaxed:
- Buyer pool expands
- Transaction volumes increase
- Price stability improves
This is especially relevant for:
- OCR condos
- ECs
- Suburban resale properties
En Bloc Sales and Redevelopment: Unlocking Supply
Another proposal is to:
- Lower consent thresholds
- Extend en-bloc sale deadlines
Why?
- Many ageing developments are stuck
- High costs make redevelopment difficult
- Supply renewal slows
For investors in older condos:
- Easier en-bloc rules = potential upside
- But not guaranteed — expectations must be realistic
What This Means for Retail Investors (Plain English)
If You’re a First-Time Buyer
- No immediate impact
- But policy fine-tuning could:
- Improve supply
- Stabilise prices
If You Own One Investment Property
- Any ABSD easing supports resale liquidity
- EC changes may push more buyers into private condos
- En-bloc tweaks could revive older estates
If You’re Sitting on Cash
- Policy shifts usually move slowly
- Watch Budget 2026 closely
- Be ready before sentiment changes
Will Prices Go Up If These Changes Happen?
Not overnight.
But over time:
- Improved confidence supports prices
- Liquidity returns to quiet segments
- Market becomes healthier, not hotter
This is about sustainability, not speculation.
Final Thoughts: Cooling Measures Don’t Last Forever
Singapore’s property policies have always been:
- Data-driven
- Gradual
- Targeted
The fact that property players are calling for reviews — not rollbacks — is important.
It suggests:
- The market has matured
- Risks are more contained
- The next phase is about balance, not brakes
For retail investors, the biggest lesson is this:
Policy matters — but understanding where you sit in the cycle matters more.
Stay informed, stay patient, and don’t invest based on headlines alone.
Disclaimer
This article is for educational purposes only and does not constitute financial advice. Property investments carry risk, and readers should assess their own circumstances.