Propnex Proposes Policy Shifts Support Housing Market Ahead Singapore Budget 2026
PropNex Realty’s Recommendations Ahead of Singapore Budget 2026
As Singapore anticipates the upcoming Budget 2026 announcement in February, real estate giant PropNex Realty has put forth a series of recommendations intended to bolster market stability, enhance housing accessibility, and promote urban renewal. These suggestions aim to modify existing real estate policies to better align with the current market conditions and future needs.
In a recent statement, Kelvin Fong, CEO of PropNex, highlighted the opportunity that the Budget presents for refining policies that could better serve the real estate market and the broader community.
Singapore Condo projects could potentially benefit from some of these policy adjustments, particularly those aimed at increasing market liquidity and encouraging urban renewal, which are central to maintaining the vibrancy and competitiveness of Singapore’s real estate landscape.
Adjustments to ABSD Rates and Developer Policies
One of the key recommendations from PropNex is the reduction of the Additional Buyer’s Stamp Duty (ABSD) rate for foreign buyers of ultra-luxury non-landed homes worth $10 million or more in the Core Central Region (CCR). The current ABSD rate, which was increased to 60% in April 2023 to dampen speculative purchasing, could be adjusted back to 30% for this specific segment, fostering liquidity without impacting local housing competition.
Furthermore, PropNex suggests extending the ABSD remission deadlines for developers of large residential plots, proposing a new timeline of seven years for projects over 80,000 sq m. This adjustment would provide developers more flexibility in marketing their units, potentially leading to more ambitious and innovative housing projects.
Enhancements to Executive Condominium Policies
The firm also addresses concerns in the Executive Condominium (EC) market, advocating for an increase in the Mortgage Servicing Ratio (MSR) from 30% to 40% for new EC purchases. This change is suggested in response to the sharp 88% rise in new EC prices from 2013 to 2025, which has significantly outpaced the increase in HDB resale prices. Additionally, PropNex recommends raising the monthly household income ceiling for new EC buyers gradually from $16,000 to as much as $20,000 to alleviate the financial burden on potential buyers.
Supporting Urban Renewal and Homeownership
To further support urban renewal initiatives, PropNex has proposed reducing the statutory consent threshold for collective sales under the Land Titles (Strata) Act to 70% for private residential developments that are at least 40 years old. This would facilitate the redevelopment of aging properties, incorporating modern, senior-friendly designs and enhanced community facilities.
Additionally, PropNex calls for the abolition of the 15-month waiting period for private homeowners who wish to purchase HDB resale flats. With the stabilization of HDB resale prices and transaction volumes, lifting this restriction could improve housing affordability and fluidity in the resale market.
Kelvin Fong emphasizes that through careful adjustments to existing policies, Singapore can maintain housing affordability, encourage responsible homeownership, and ensure the long-term resilience of the residential property market.
