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RES Exam Unit 1.1 Guide: Understanding the Real Estate Market and Submarkets in Singapore

  • Writer: Phượng Trương Thị
    Phượng Trương Thị
  • Jul 4
  • 3 min read

For anyone preparing for the Real Estate Salesperson (RES) Examination in Singapore, Unit 1.1 is a foundational topic you must master. It introduces how Singapore’s real estate market is structured and segmented — knowledge that’s tested frequently in the exam and critical to real-world practice.

RES Exam Unit 1.1 Guide: Understanding the Real Estate Market and Submarkets in Singapore

At Haofeng.sg, we’ve supported countless aspiring real estate agents in building confidence through clear explanations, real-world examples, and smart learning strategies. If you're aiming to pass the RES exam and start your career on solid ground, this unit is where it all begins.


What Is Covered in RES Exam Unit 1.1?

Unit 1.1 introduces key structural components of Singapore’s real estate landscape, including:

  • Segmentation into submarkets

  • Different property types: HDB, ECs, condos, landed homes, and commercial spaces

  • Geographic zoning: CCR, RCR, OCR

  • Government policies: MOP, ABSD, LTV, TDSR, MSR

Understanding these helps future property agents better navigate market demand, property financing, and client advising.


Singapore’s Real Estate Market Segments

The property market in Singapore is not uniform. It's divided into multiple submarkets based on:

  • Location

  • Housing type

  • Eligibility

  • Ownership rules


Key Submarkets

  • Public Housing (HDB Flats) Government-built, for Singaporeans and eligible PRs, subject to MOP.

  • Executive Condominiums (ECs) Hybrid public-private housing, with income ceilings and resale restrictions.

  • Private Residential Property Condominiums and landed homes — generally open to all buyers, including foreigners.

  • Commercial and Industrial Property Offices, retail units, factories — with different rules and financing structures.


Geographic Segmentation: CCR, RCR, OCR

According to URA (Urban Redevelopment Authority):

  • CCR (Core Central Region) Upscale areas: Orchard, Newton, Sentosa

  • RCR (Rest of Central Region) Mid-tier areas: Bishan, Novena, Toa Payoh

  • OCR (Outside Central Region) Mass-market estates: Woodlands, Jurong, Sengkang

Understanding these zones is vital for evaluating property value, rental yield, and buyer interest.


Property Types and Key Differences

Property Type

Buyer Eligibility

Loan Type

ABSD

MOP

HDB Flats

SCs & eligible PRs

HDB/Bank

0–20%

5 yrs

ECs

SCs & eligible PRs (income ceiling applies)

Bank only

0–30%

5 yrs

Private Condos

All buyers (incl. foreigners)

Bank only

0–60%

None

Landed Homes

SCs mainly; foreigners need LDAU approval

Bank only

Up to 60%

None


Buyer Eligibility & Financing Rules

Buyer Type

ABSD (1st Property)

Loan Type

LTV Cap

Singapore Citizen

0–20%

HDB/Bank

Up to 75%

PR

5–30%

Bank only

Up to 75%

Foreigner

60%

Bank only

Up to 75%

Other important rules:

  • TDSR: Applies to all loans

  • MSR: Applies to HDB & ECs only

  • CPF Usage: Restricted by lease & valuation

  • Loan Tenure Rules: Affected by borrower’s age and loan length


Understanding Property Tenure

  • Freehold: Permanent ownership, higher value

  • 999-Year Leasehold: Almost equivalent to freehold

  • 99-Year Leasehold: Most common, especially for HDB

Shorter lease = more restrictions on CPF and lower resale value — often tested in the RES exam.


Sample RES Exam Questions

Q1: A PR buying an EC for the second time—what ABSD applies?

A: 25%

Q2: Can a foreigner buy a landed home in Bukit Timah?

A: Only with LDAU approval

Q3: What’s the MOP for a new EC?

A: 5 years


Study Tips from Haofeng.sg

At Haofeng.sg, we recommend you study Unit 1.1 with a focus on:

Understanding policies, not just memorising them

Linking concepts (e.g., ABSD + buyer type + region)

Practising case-style MCQs

Thinking like a future agent, not just a student

We help RES candidates simplify complex eligibility rules and financing conditions so that they’re prepared for both the exam and future client interactions.


Frequently Asked Questions

Q: Is Unit 1.1 important in the RES Exam?

A: Yes. It’s a core topic in Paper 1 and often reappears in scenario-based questions.

Q: Do I need to know every district under CCR/RCR/OCR?

A: Not all, but know a few examples and their pricing trends.

Q: What’s the most common mistake?

A: Memorising rules without understanding how they apply in real-world scenarios.


Related Reading


Final Thoughts

Unit 1.1 is not just exam content — it’s the foundation of your real estate career. From understanding property segmentation to applying financing policies, this unit prepares you to be an informed and effective property agent.


At Haofeng.sg, we don’t just help you pass. We help you understand, apply, and succeed — both in the exam and in practice. Whether you’re just starting or reviewing key topics, our insights and teaching approach are here to guide your RES journey.

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