How Property Cycles Actually Work in Singapore

Video description from @marcusluahsg

Do property price cycles actually begin before condo prices start rising?
Most buyers only notice the market moving when new launch prices start hitting new highs. But by then, the change may have started years earlier, when developers first paid a higher price for land.

In this video, I break down the relationship between land prices and condo prices in Singapore, and look back at what happened during the previous land-price reset.

We’ll compare projects like Penrose, Clavon, AMO Residence and Lentor Modern to understand what happened to buyers who entered before and after land costs moved higher. We’ll also look at why a subsequent drop in land prices didn’t necessarily translate into much cheaper condo prices.

I’ll also explain GFA Harmonisation, why newer condos can look smaller or more expensive on a PSF basis, and why buyers today need to look beyond just PSF and square footage when comparing properties.
Most importantly, we’ll bring everything back to one key question:
Where does the property you’re considering today sit relative to its future replacement cost?