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?


    Phone No:


    dont wait to buy real estate
    6 February 2023
    Stephen is very professional and trustworthy agent, he's very responsive and treat all customers with respect. He has put in a lot of effort in making sure my transaction is handled properly, on time and on top of priority. I have already recommended him to my friends that's interested in buying property. Thanks Stephen.
    Elwin840808 Elwin
    Elwin840808 Elwin
    16 January 2023
    Stephen really a good agent. I was new to home selling and have heard many about terrible agents. Stephen was professional and he never made me felt uncomfortable. He is professional, experienced and helpful agent. Highly recommend.
    Marchelina Vincensia
    Marchelina Vincensia
    17 August 2022
    I’ve met so many property agents in my life but Stephen is really a rare find. If you are looking for someone unconventional, who gives advice based on data and answer all your easy and hard questions tirelessly, then I couldn’t recommend Stephen more. A very hardworking, humble and strategic agent, highly recommend!
    Sei Chia Lau
    Sei Chia Lau
    4 August 2022
    Stephen is efficient, responsive and informative. He is able to give us useful advise and guide us patiently. Overall, his service is great👍
    Stanley Tan
    Stanley Tan
    26 June 2022
    Stephen is experienced, analytical and views properties comprehensively. This is evident right from the beginning when we chanced upon his informative YouTube videos. He provided us invaluable advice throughout the process of our property purchase. His calm, humble and polite nature made him an approachable professional to discuss the many questions we had. He was patient with his technical explanations as well as his insightful suggestions. He placed our interests first, in the buyers' shoes, gave us space to consider and has never rushed us to make decisions without proper considerations. His attentiveness goes a long way. Stephen carefully planned out the timeline for us and gave us reminders to complete the various items ahead of the deadlines to avoid unwanted hiccups. It was entirely a worry-free process. Stephen even gone the extra mile to meet us at the law firm to show us the way and be in person with us to sign the S&P. He made our property purchase a great buy and an enjoyable experience. Thank you, Stephen.
    Leo Lim
    Leo Lim
    21 March 2022
    I would like to send a note of commendation to Stephen Chong for his dedication, professionalism, diligence and patience in handling of property transaction. I would absolutely recommend Stephen Chong to buyers and sellers who are considering to buy or sell their homes.
    Lim Ming Hwee
    Lim Ming Hwee
    26 February 2022
    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
    24 December 2021
    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
    20 July 2021
    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.

    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.
    Review Title
    Review Content