For years, Singapore property felt almost foolproof. Buy a condo, hold for a few years, sell, and walk away with a tidy profit. That narrative is starting to crack.
Recent data shows that loss-making condo resale transactions have crept up, especially in the final quarter of the year. While most sellers are still in the black, the growing share of red-ink deals is an important signal for retail investors, not just high-net-worth buyers.
This isn’t a story about a market crash. It’s about changing conditions, pricing discipline, and the end of easy gains.
Let’s unpack what’s really happening, why it matters, and how everyday Singapore investors can adapt.
What Does “Loss-Making” Really Mean?
A loss-making resale simply means the unit was sold for less than its previous purchase price, excluding additional costs like stamp duty, renovation, and interest.
In real life, the pain is often worse than the headline number.
Example:
A couple buys a CCR condo in 2016 for S$3 million.
They sell in 2024 for S$2.85 million.
On paper, the loss is S$150,000.
After buyer’s stamp duty, interest, legal fees, and renovation?
The real loss can easily exceed S$300,000.
This is why even a “small” loss can sting badly.
Why Are Loss-Making Condo Resales Rising Now?
1. The Price Peak Effect
Many loss-making transactions involve owners who bought during previous market highs.
Think:
- Pre-2008 boom
- 2012–2013 peak before cooling measures
- Select high-end launches priced aggressively in recent years
When prices flatten instead of rising, sellers who need to exit don’t have much room to manoeuvre.
2. Interest Rates Changed Buyer Psychology
Even though rates have stabilised, buyers today are far more cautious.
Before:
“Prices always go up. Stretch a bit, can recover later.”
Now:
“Monthly instalment so high—better not overpay.”
This matters most in:
- CCR
- Larger units
- High absolute price condos
When buyers hesitate, sellers lose pricing power.
3. The CCR Is Feeling It the Most
Losses are concentrated in prime areas, where:
- Entry prices are high
- Buyer pool is smaller
- Rental yields are lower
A S$100 psf mispricing in OCR might be manageable.
The same mistake in CCR can mean six-figure losses.
What This Means for Retail Investors (Not Just Luxury Buyers)
You might be thinking:
“I’m only looking at OCR or RCR—this doesn’t affect me.”
Not quite.
The market is becoming segmented.
- Good projects, good floors, good layouts still sell profitably
- Overpriced, poorly located, or badly timed purchases are exposed
This is a shift from a rising-tide market to a selection market.
Insight #1: Entry Price Matters More Than Ever
In the past, timing could cover mistakes. Now, entry price is the main determinant of outcome.
Practical Example (Very Singaporean)
Two investors buy similar 2-bedroom units in the same development:
- Investor A buys during launch hype at S$2,300 psf
- Investor B waits and buys resale at S$2,050 psf
Five years later, the market price is S$2,150 psf.
- Investor A faces a loss
- Investor B walks away with a gain
Same condo. Same market. Totally different outcome.
Lesson:
Retail investors must stop chasing headlines and start anchoring to value.
Insight #2: “Hold Long Enough” Is No Longer a Guarantee
There’s a common belief in Singapore:
“If you hold property long enough, confirm make money.”
The data is quietly challenging that assumption.
Why Holding Doesn’t Always Save You
- Long flat periods can erase real returns after inflation
- Maintenance fees, interest, and opportunity cost add up
- Exit timing still matters, even after 10–15 years
Some of the biggest losses occurred in units held over a decade.
Holding reduces risk—but it doesn’t eliminate it.
Insight #3: Liquidity Is an Underrated Risk
Retail investors often focus on price but forget liquidity.
Ask yourself:
- How many buyers can afford my unit?
- How sensitive are they to interest rates?
- Are there many similar units competing with mine?
Example
A 1-bedder near an MRT in OCR:
- Many buyers
- Many renters
- Easier exit
A large CCR unit with luxury finishing:
- Smaller buyer pool
- Price-sensitive
- Harder to sell in uncertain times
Liquidity determines how painful a downturn feels.
Is This a Warning Sign or a Healthy Reset?
It’s more accurate to see this as a market cooling into realism.
Positive signs:
- Most resale transactions are still profitable
- Forced selling remains limited
- Owner-occupiers are largely holding steady
What’s disappearing is easy money.
What Smart Retail Investors Should Do Now
1. Stress-Test Your Purchase
Before buying, ask:
- Can I hold if prices stagnate for 5–7 years?
- Can I rent it out comfortably?
- Am I relying on capital gains to survive?
If the deal only works in a bull market, it’s not a good deal.
2. Focus on Fundamentals, Not FOMO
Strong fundamentals still win:
- MRT accessibility
- Good unit layouts
- Limited competing supply
- Real rental demand
Ignore:
- “Last unit!”
- “Prices going up next phase!”
- “Everyone making money!”
3. Plan Your Exit Before You Enter
Know your:
- Likely buyer profile
- Holding period
- Exit price range
If you can’t picture who will buy your unit from you, reconsider.
What About 2025 and Beyond?
Expect:
- Slower, uneven price growth
- Continued pressure in high-end segments
- Better opportunities for disciplined buyers
For retail investors, this is actually good news.
Less speculation means:
- More rational pricing
- Fewer bidding wars
- Better risk-adjusted returns
Final Thoughts
The rise in loss-making condo resales in Singapore isn’t a crisis—but it is a message.
The property market is no longer forgiving.
Returns are earned, not assumed.
For retail investors who stay disciplined, understand value, and respect risk, opportunities still exist. But the days of buying anything and winning are firmly behind us.
And honestly? That’s probably healthier for everyone.