PropNex proposes policy shifts to support housing market ahead of Singapore Budget 2026

Ahead of the Singapore Budget 2026 in February, PropNex Realty has released a wish list outlining targeted policy adjustments aimed at supporting market stability, improving housing accessibility and encouraging urban renewal.

Kelvin Fong, CEO of Propnex, says that “this gives policymakers room to fine-tune existing measures, and the upcoming Singapore Budget 2026 in February presents an opportunity to tweak certain measures.”

In the wish list, PropNex has called for a reduction in the additional buyer’s stamp duty (ABSD) rate for foreign buyers purchasing ultra-luxury non-landed homes priced at $10 million and above in the core central region (CCR). In April 2023, the ABSD rate for foreigners was doubled from 30% to 60% to curb speculative demand, particularly in the prime market.

However, PropNex argues that this ultra-luxury segment is not a source of competition with local buyers, who largely do not participate in the ultra-luxury housing market. Restoring the ABSD rate to 30% for this narrow segment would help revive liquidity at the top end of the market, while providing developers with greater demand visibility and confidence when bidding for CCR land parcels.

On the supply side, the company has proposed further refinements to the ABSD remission framework for developers. Under current rules, developers must sell all units within five years of site acquisition to qualify for ABSD remission, or face significant clawbacks. While the government introduced targeted deadline extensions of six months to a year in March 2025 for larger or more complex projects, and reduced clawback rates in February 2024 for projects with at least 90% of units sold, PropNex believes additional flexibility is needed.

By lengthening ABSD remission deadlines to seven years for large residential sites spanning 80,000 sq m or more, developers would have more time to market units, and boost their confidence to undertake more ambitious projects.

As for the EC market, PropNex has urged a review of the mortgage servicing ratio (MSR), which is currently capped at 30% of a borrower’s gross monthly income for HDB flats and new EC purchases. While the MSR is intended to ensure prudent borrowing, the firm noted that average new EC prices have surged by 88% between 2013 and 2025, significantly outpacing the growth in HDB resale prices.

Therefore, Propnex has proposed raising the MSR for new EC purchases to 40%, while keeping the cap for HDB flats unchanged to preserve affordability at the public housing level.

In addition, the firm has recommended a gradual increase in the monthly household income ceiling for new EC buyers from $16,000 to $18,000 initially, and potentially to $20,000 later. Based on the average new EC price of $1.72 million in 2025, buyers earning $16,000 a month face a combined downpayment and financing shortfall of about $715,000, payable using cash and CPF savings.

Raising the income ceiling to $18,000 and $20,000 would reduce the shortfall to approximately $595,000 and $465,000 respectively, easing upfront financial strain on EC buyers, although monthly loan repayments would increase accordingly.

To support urban renewal, PropNex has also proposed lowering the statutory consent threshold for collective sales under the Land Titles (Strata) Act. Currently, en bloc sales require at least 80% consent for developments aged 10 years or older, and 90% for those under 10 years. With the Ministry of Law reviewing the collective sale framework, PropNex suggests reducing the threshold to 70% for private residential developments that are at least 40 years old.

Redevelopment of older assets will help mitigate maintenance costs for homeowners, while also adapting to the community’s needs with “barrier-free access, senior-friendly designs, and facilities for modern living”. More landscaping and open spaces offers a refreshed look for these neighbourhoods, says Propnex.

Lastly, the company reiterated its call to lift the 15-month wait-out period imposed on private homeowners seeking to buy HDB resale flats. Introduced in September 2022 as a cooling measure, the restriction was intended to curb resale price pressures.

With HDB resale prices rising by a more moderate 2.9% in 2025, compared with 9.7% in 2024, and resale transaction volumes also easing, PropNex believes the measure has largely served its purpose. Removing the wait-out period would allow private homeowners to right-size more efficiently and could also support en bloc activity, as sellers would be able to secure replacement homes without delay.
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Fong adds: “By fine-tuning existing measures and policies in line with current market conditions, we believe Singapore can continue to keep housing affordable for its citizens, support responsible homeownership, and ensure the long-term resilience of the residential property market.”