What URA didn’t tell you about the hidden Cooling Measure?


Updated on 29 Nov 2019

Cooling measure

The new URA 4 guideline changes on 17 October 2018 are not just a small change, but in fact, it’s like a hidden cooling measure! Which can cause a big change!

How would it affect the market? 

I will not go into details about the guideline changes here.

(For those who wish to read the details about the new guideline changes, click here.)

Instead, I will share more about what are the impacts on you.

I believe these will be more appealing to most of you, right?

In short, the government wants to counter developers from building shoebox units and control the traffic in certain area.

Would the shoebox units owners still able to gain profit? 

The Consequences?

The lesser number of sellable units in the project means the developers will make less profit as well.

How significant will be the difference? It reduces the number of units by 18% and 30%!

Certainly, this is a bad news for the developers, homeowners and also homebuyers!

You must be wondering why homeowners and homebuyers?

Why is it a Bad News to Homeowners?

The “Homeowners” here refers to those who are speculating or dreaming for successful en-bloc sales.

With the lower profit now to the developers, here is the end of collective sale fever for this cycle!

En bloc potential is not sure sign

But Why also Bad News to Homebuyers?

Literally, the formula used to restrict the maximum number of units allowed in developments outside CCR (core central region) is now gross floor area over 85sqm, instead of 70sqm previous.

In other words, the future private homes, their average size will be 21% larger than what’s in the market today (October 2018).

cooling measure effect

After I converted into the square foot, the average size now is 753sqft but soon to be 915sqft.

753sqft is the norm 2-Bedroom new condo size, whereas 915sqft is the norm 3-Bedroom Compact nowadays.

Future Condo will be More Expensive!

Meaning that the developers got to build all their unit mix larger by 21% or cut down the number of 1 and 2 bedrooms and replace them with 3 bedrooms.

Either way, the selling price in term of quantum is going to be much higher.

HDB and Condo Price Gap

High chance is, you won’t be able to find anything new below $1million in the near future!

Because all the unit sizes will become bigger!

Generally, this makes more difficult for homebuyers who are looking for the affordable condo. The price gap for HDB upgraders to be widened again.

This new hidden “cooling measure” may not favourable to you if you wish to buy a new 1 or 2-Bedroom next year onwards.

Can 1-Bedroom Condo Still Make Profit?

However, this can be a double-edged sword too, especially for current private homeowners of the 1 and 2-Bedroom. Because people will start to look into resale when the new sale price is too high.

There are still some current new launches which do not affect by the new guideline changes.

Thus, turn yourself to be the owner before it is too late!

Tips For You:

If you are looking for 1 or 2 Bedroom unit, please buy now.

If you own 1 or 2 Bedroom unit below $700K or $850K respectively, you may hold until the effects kick in and sell at a higher price.

Need an Advice from us?

    Name:

    Phone No:

    Email:

    dont wait to buy real estate
    Stephen Chong
    Stephen Chong
    Lim Ming Hwee
    Lim Ming Hwee
    2022-02-26
    Stephen is a very good agent who goes beyond his way to ensure that his clients are happy. He is very patient and helpful, and will always give good advice.
    Joseph Sze
    Joseph Sze
    2021-12-24
    Stephen is a professional & responsible person who has provided good quality customer services to our recent Condo housing purchase & related matters. I found he has put in great efforts and gone for extre miles to assist us in the whole process and related purchase issues. Excellent work, Stephen!👍🏼👍🏼👍🏼
    SZ Lim
    SZ Lim
    2021-07-20
    Was going thru Stephen's video when I noticed he had a google review panel up. Going to copy paste my review on his FB page from 2019. I still stand by my review. Stephen was very professional throughout our engagement process. I first engaged Stephen as his effort could be seen thru the videos he made. The videos were informative, detailed, yet easy to understand from a beginners point of view. Could also see the improvement of his videos as time passes, and that speaks volumes about one's character on his eagerness to improve and share. During my engagement with him, Stephen was very professional. Since I was very new in the scene, I required alot of guidance and honesty. Stephen was very upfront with me on many items and did not try to hide any facts from me. As a first time buyer, both good and bad prospects were laid out after his detailed analysis on my current financial condition and also on the projects we went to see. Comparing to other agents who will just blab anything that benefits their sales point, Stephen was straightforward and truthful on the issue. I have met quite a few agents but would highly recommend Stephen to people who are looking for properties, be it looking for a place to stay, or looking for a property to invest.
    YingYu Tan
    YingYu Tan
    2021-07-11
    Stephen handled both my HDB sale and new condo purchase. The whole process was fuss-free and smooth. What impressed me was his willingness to go the extra mile for his client, from analyzing every detail and being there for me and my wife every step of the selling/buying process.
    陳若芸
    陳若芸
    2021-07-04
    Cannot believers Mr Stephen posting my rental unit less than 10 mins ? Yes, can't believed it ? but please believed it. 1st day open ..more then 8 enquiry. Mr Stephen was very professional, patient and knowledgeable, he shares all the information i needed, excellent service 💪💪 Rent out my unit within 2 days highly recommended ..BINGO
    Jade Bai
    Jade Bai
    2021-06-30
    We came across Stephen YouTube video and appreciated the tips he is providing. We decided to engage Stephen when we were house hunting. Most people may feel that you can DIY resale hdb buying process. Personally we feel its money well spent engaging Stephen. The whole buying process is swift. Stephen is very prompt in his reply. He did alot of detailed analysis and recommend us the units we can explore. He is very detailed anf meticulous. This process saved alot of time. He also gave us helpful advice on the units we viewed. No hard selling or rush you into hasty decisions 😊
    Adrian Tay
    Adrian Tay
    2021-06-30
    Knowledgeable and professional, Stephen is not the typical agent you will meet. Ever so patient, he will help provide his genuine feedback and never pushy unlike most sales agents. Fortunate to have Stephen walk with me in my property investment journey. Will recommend Stephen to anyone who is looking for a trustworthy agent to walk the mile with.
    michael tan
    michael tan
    2021-06-29
    Very patient and give good advise. I bought ec under him and he sold my hdb.
    CY Goh
    CY Goh
    2021-06-05
    I believe every property investors or home buyers have encounters with numerous property agents. However, how many of you ever met someone with passion and enthusiasm to sit down and analyze each property based on your criteria (budget, requirements like location, size, etc)? Having watched Stephen's videos in YouTube, decided to ping him and the rest is unspoken of. Not only did he helped to narrow down our search, he also analyzed which project has higher prospect and which unit (level, facing, etc) fits our living habits. No complaints, except for not knowing Stephen earlier. Good job Stephen, thank you.
    Esther Cheh
    Esther Cheh
    2021-04-30
    Stephen was the agent assisting us in the purchase of our condo and now to market them for rental. He is extremely helpful, open, transparent and reliable throughout the entire time. He went above and beyond to help us set things up while we are not in Singapore.He is also very professional and knowledgeable about the property market in general. I am confident to leave our condo in his care to find us a good tenant and to manage them in future.

    Please review or share if you think this post helps.

    What URA didn't tell you about the hidden cooling measure?
    0.0 rating based on 12,345 ratings
    Overall rating: 0 out of 5 based on 0 reviews.
    Name
    Email
    Review Title
    Rating
    Review Content