RES Exam Unit 1.1: Understanding the Real Estate Market and Submarkets in Singapore
- Phượng Trương Thị
- 12 minutes ago
- 4 min read
For anyone preparing to take the Real Estate Salesperson (RES) Examination in Singapore, Unit 1.1 is one of the first topics to focus on. This unit lays the groundwork for understanding how Singapore’s real estate market is organised — a topic that comes up often not only in the exam but in real-world practice.
At Amy Lim Group, we’ve helped many aspiring agents understand and apply the concepts taught in Unit 1.1 through clear explanations, case-based learning, and up-to-date examples. If you’re aiming to pass the RES exam and start your real estate career with confidence, mastering this unit is a must.
What Is Covered in RES Exam Unit 1.1?
Unit 1.1 introduces candidates to the core structure of Singapore’s real estate market. Specifically, it examines:
The segmentation of the property market into submarkets
Different property types: public housing, ECs, private condos, landed homes, and commercial spaces
How geographic zones and buyer profiles affect demand and supply
Key regulatory and policy factors such as MOP, ABSD, LTV, TDSR, and MSR
The goal is to help future salespersons recognise how different parts of the market operate and relate to each other — and to be able to advise clients accordingly.
Understanding Singapore’s Real Estate Market Segments
The real estate market in Singapore is not a single, homogeneous entity. Instead, it is divided into submarkets that reflect differences in location, housing type, buyer eligibility, and ownership restrictions.
These include:
Public Housing (HDB flats)
Executive Condominiums (ECs)
Private Residential Property (condominiums and landed homes)
Commercial and Industrial Property
Each of these is treated differently in terms of financing, ownership regulations, and target buyers — making it essential to understand how each functions both in the exam and in the field.
Geographic Segmentation: CCR, RCR, OCR
The Urban Redevelopment Authority (URA) further divides Singapore into three key regions for residential property:
Core Central Region (CCR): High-end properties in locations like Orchard and Sentosa
Rest of Central Region (RCR): Mid-tier areas such as Novena, Bishan, and Toa Payoh
Outside Central Region (OCR): More affordable, mass-market areas like Punggol, Woodlands, and Jurong
Understanding these zones helps agents forecast market demand and advise clients on affordability, investment potential, and rental yield.
Property Types and Key Differences
HDB Flats
Developed by the government
Only available to Singapore Citizens and eligible PRs
Subject to a 5-year Minimum Occupation Period (MOP)
Eligible for HDB loans and CPF Housing Grants
Executive Condominiums (ECs)
Hybrid housing developed by private developers but subsidised by the government
Only for SCs and eligible PRs under an income ceiling
MOP of 5 years; privatised after 10 years
Only bank loans allowed (no HDB loans)
Private Condominiums
Open to all buyers, including foreigners
No MOP or resale restrictions
Financed through bank loans only
Subject to ABSD depending on the buyer profile
Landed Properties
Includes bungalows, semi-detached and terrace houses
Generally only available to Singapore Citizens
Foreigners must apply for LDAU approval
Often freehold and located in designated landed zones
Buyer Eligibility and Financing Rules
The RES exam often includes questions about who is eligible to buy different types of properties and under what financing terms. Here's a simplified overview:
Buyer Type | ABSD Rate (1st Property) | Loan Type | LTV Cap |
Singapore Citizen | 0–20% | HDB/Bank | Up to 75% |
Permanent Resident | 5–30% | Bank only | Up to 75% |
Foreigner | 60% | Bank only | Up to 75% |
Other important financial rules include:
TDSR (Total Debt Servicing Ratio): Applies to all property loans
MSR (Mortgage Servicing Ratio): Applies to HDB and ECs only
CPF Usage: Restricted depending on lease tenure and property value
Loan Tenure and Age Limits: Affect how much financing a buyer can obtain
Understanding Tenure: Freehold vs Leasehold
Tenure affects a property’s market appeal, valuation, and financing eligibility.
Freehold: Indefinite ownership, higher demand
999-Year Leasehold: Nearly equivalent to freehold
99-Year Leasehold: Most common for HDB and many condos
Shorter leases affect CPF usage and resale value — something tested regularly in the exam
Example RES Exam Questions
Q1: A PR buying an EC for the second time—what ABSD rate applies?
Answer: 25%
Q2: Can a foreigner purchase a landed home in Bukit Timah?
Answer: Only with approval from the Land Dealings Approval Unit (LDAU)
Q3: How long is the Minimum Occupation Period for a newly purchased EC?
Answer: 5 years
Tips from Amy Lim Group
At Amy Lim Group, we recommend students approach Unit 1.1 with a focus on:
Real-world application, not just memorisation
Understanding how public policies shape market behavior
Practising MCQs and scenario-based questions from multiple angles
Linking concepts (e.g., ABSD + buyer type + tenure + region)
We also coach our agents on how to break down complex eligibility or financing questions into manageable parts — a skill that benefits both during the exam and in future transactions.
Frequently Asked Questions
Is Unit 1.1 heavily weighted in the RES Exam? Yes. Many Paper 1 questions touch on property types, buyer eligibility, or submarket characteristics.
Do I need to know all regions under CCR, RCR, and OCR? Not all, but you should know examples of each and the typical buyer profiles and pricing associated with them.
What is the most common mistake students make? Focusing too much on memorising terms instead of learning how they work together in practice. For example, knowing MOP is five years is one thing — but knowing how it impacts resale strategy is another.
Related Reading
For more RES exam support, continue with these guides:
Final Thoughts
Unit 1.1 forms the backbone of your real estate knowledge. It’s not just about passing an exam — it’s about understanding the landscape you’ll work in daily. From public housing eligibility to tenure structures and financing rules, this unit gives you the insights every property agent needs from day one.
At Amy Lim Group, we’re committed to helping RES candidates go beyond theory. If you want to learn with practical insights, proven strategies, and experienced mentors, we’re here to support you at every step of your RES journey.
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