Top 3 Singapore Property Myths That Cost Buyers Thousands
In Singapore’s fast-paced property market, clarity matters more than confidence. Every day, property agents hear the same myths repeated—beliefs that sound logical but lead buyers to overpay, miss opportunities or make emotionally driven decisions that don’t align with market realities.
These misconceptions don’t just slow down a purchase; they can affect long-term returns, delay upgrades and result in tens of thousands in missed gains. Here are three of the most common (and costly) property myths that continue to mislead even savvy Singapore buyers in 2025.
Myth 1: Larger Units Always Sell Better
Bigger is better, until quantum (purchase price) exceeds what the buyer pool can afford.
In resale HDB and condo markets, buyer decisions are rarely about square footage alone. Instead, they hinge on:
• Layout efficiency
• Total quantum (not just $PSF)
• Target buyer group
• Resale demand and financing limits
A 710 sq ft 2‑bedder with a dumbbell layout may be far more appealing than an 880 sq ft unit with long corridors and wasted space, especially if both are priced under $1.8M.
Moreover, large‑format units often face smaller buyer pools due to high total quantum. A 1,400 sq ft 4‑bedder priced at $3.2M may have limited takers, especially when most upgraders hover around the $2M–$2.4M range.
In Singapore’s luxury condo market, large‑format units, such as those at Reflections at Keppel Bay, often face resale challenges due to their high total quantum, despite attractive PSF rates.
For many buyers in 2025, liquidity and affordability matter more than square footage, especially in the resale segment of the Core Central Region (CCR). This highlights a mismatch between size and liquidity.
A better framing: “What is the sweet spot in size and price for the likely future buyer of this unit?”
This is where advisory comes in, by identifying which layouts align with:
• Family upgraders (typically 900–1,000 sq ft 3‑bedders)
• Young investors (1‑bedder units with yield potential)
• Legacy buyers (larger freehold homes in prime districts)
Myth 2: It's Better to Wait for the Market to Crash
In 2020, when the pandemic hit, many buyers held back. Prices dipped briefly in Q2, but just 12 months later new launch prices rebounded sharply—driven by construction delays, record-low interest rates and rising demand for larger homes.
Fast forward to today, and the gap is striking. A 2‑bedder that cost $1.3 million pre‑COVID may now be priced at $1.8 million or more. In fact:
• In Q2 2020, URA caveats show new launches in the Outside Central Region (OCR) transacting around $1,400 – $1,500 psf
• By 2023–2024, similar units at projects like The Reserve Residences and Lentor Hills Residences exceeded $2,100 psf, with average prices reaching $2,400+ psf in some cases, translating to $1.75 M to $1.9 M for a typical two‑bedroom unit
Waiting didn’t lead to better prices; it led to missed capital gains. And that’s not all. Buyers who delay often face:
• Fewer unit choices (the best stacks go first)
• Higher psf in Phase 2 or Phase 3 launches
• Policy changes (TDSR or ABSD) that limit eligibility or financing
• Loss of deposit flexibility or financing terms
• Opportunity cost in long‑term appreciation
A better question isn’t “Should I wait for the market to crash?” It’s “Can I afford to enter now, and hold long‑term through market cycles?” Because in Singapore’s tightly controlled, land‑scarce market, the real cost isn’t overpaying slightly today. It’s missing the entry window altogether.
Myth 3: Freehold Properties Are Always a Better Investment Than Leasehold
Lower entry prices unlock greater appreciation. 99-year leasehold condos often launch at lower price points than their freehold counterparts, which allows buyers more room for capital gains. For example, a 99-year leasehold two-bedder launched at $1.2 million in 2018 and sold for $1.6 million in 2023 delivers a 33% gain. A comparable freehold unit purchased at $1.5 million and sold for $1.68 million yields just 12%. The bigger jump on a lower quantum illustrates why entry price, not tenure, drives returns.
2. Stronger Demand Pool from HDB Upgraders
Leasehold condos often attract a larger pool of HDB upgraders. Around 80% of households live in public housing, so lower entry prices make these units accessible for families moving up from HDB. This deep demand pool supports resale values and liquidity when it’s time to exit.
What the Data Actually Shows About Buying Early
3. Shorter Holding Periods & Lease Decay Isn’t a Dealbreaker
Most buyers don’t hold their condos for 99 years. Owners typically move for schools, lifestyle changes or capital gains within 5‑10 years. With holding periods this short, lease decay is a non‑issue. What matters more are your entry price, the timing of your exit, and the demand pool when you sell.
Final Thoughts: It’s Not About Asking More Questions. It’s About Asking Better Ones
Many property myths persist not because people don’t do research, but because they’re asking the wrong questions:
- It’s not “Should I wait?” → It’s “What price and location fits my life now and later?”
- It’s not “Freehold or leasehold?” → It’s “What’s my exit plan, and how long am I holding?”
- It’s not “Is 1,300 sq ft better than 1,000 sq ft?” → It’s “Who will buy this from me in 5–10 years and what can they afford?”
When buyers focus on these reframed questions, the decision becomes clearer and the outcome becomes stronger.
Should You Wait for Discounts or Buy Before Revision?
Waiting can sometimes backfire. While some hope for leftover unit discounts, 2025’s market shows:
- Top 30% of units often sold out in early phases
- Later buyers pay more with lesser views or stack positions
- Interest rate environment remains stable, increasing buyer urgency
According to URA data, non-landed private home prices in the OCR increased by 0.3% in Q1 2025. While specific data on Phase 1 versus Phase 2 pricing isn’t publicly available, it’s common for developers to raise prices in subsequent phases following strong initial sales. Projects like Parktown Residence, Chuan Park and Elta have exemplified this trend, setting new benchmark prices in their respective neighborhoods.
In most cases, buying during or just after the preview launch yields the best value.
Bonus Insight: What URA Caveats Reveal About New Launch Pricing
URA caveat data shows a consistent trend among top-performing new launches in Singapore:
- Over 90% of top-grossing condo projects sold their first 30% of units at the lowest PSF
- Average price increases of 8% to 15% were observed between Phase 1 and the final release
This reinforces the advantage of entering early, not just in terms of selection, but also in maximising future gains.
Final Thoughts: Stay Ahead, Stay Informed
Price revisions are not a scare tactic. They are a proven pricing mechanism in Singapore’s condo market. If you’re planning to purchase a new launch in 2025, knowing how developers think and how actual resale data supports early buying gives you the upper hand.
Sign up for early previews, get price trend reports, and move quickly when a project fits your budget and goals.
Ready to secure the best units before prices go up?
Contact Zach Lin for complimentary expert consultation and register for exclusive floor plans, first-phase prices, and developer VVIP previews before public launch.
