How to Find Fire Sale Properties With Built-In Profits (Updated Guide)
- Stuart Chng
- Dec 21, 2025
- 7 min read
Many property investment courses and social media ads promise “zero money down” strategies or owning multiple properties with minimal cash. Unsurprisingly, this creates anxiety among investors who feel they’re missing out on some secret formula.
In reality, fire sale properties—also known as urgent sales, below valuation units, or undervalued properties—do exist. However, over the past few years, most genuine bargains were found in industrial properties, not residential homes.
That said, given current market conditions, it’s timely to revisit how investors can identify residential fire sale opportunities with real profit potential.
This article outlines the fundamentals. In future posts, I’ll dive deeper into execution strategies.
So How Exactly Do You Find And Invest In Fire-Sale Properties With Built-In Profits?
The short answer if you're time starved.
Identify a genuinely motivated or urgent seller
Purchase the property well below its fair market valuation
Simple in theory—but difficult in practice.
Why Fire Sale Deals Are Hard to Find
During stable or booming markets, owners rarely sell at large discounts. Strong demand—both local and foreign—usually means that even a small price reduction is enough to close a deal.
However, even in good times, forced sellers always exist. There will always be people who are caught on hard times or have other pressing reasons to let go urgently.
I’ve seen genuine cases involving:
Migration
Retrenchment or job loss
Business failures
Heavy investment losses from over-leveraging
Owners reallocating capital to higher-yielding assets (as we see today)
The key challenge isn’t whether fire sales exist—it’s finding them before others do.
Common Situations Where Fire Sale Discounts Occur
1. Developers Facing ABSD Deadlines
To prevent land hoarding, developers must sell all units within five years of land acquisition or incur a 25% ABSD penalty on land cost.
When only a few units remain and deadlines are near, developers may offer significant discounts—as seen in projects like 38 Jervois.
However, this doesn’t always apply. If many units remain, some developers prefer paying the penalty rather than damaging price integrity.
A word of caution; Remaining units may have compromised layouts or facings. Professional advice is crucial.
2. Owners Who Need to Buy a Matrimonial Home
Young investors who purchased private properties in their 20s often face a problem later—owning a private property disqualifies them from buying a BTO or resale flat without paying 12% ABSD (for Singaporeans).
When marriage plans are on the line, these owners are often willing to accept larger discounts to sell quickly.
3. Owners Racing Against ABSD Remission Deadlines
Some owners buy their matrimonial homes first and are given six months to sell their existing property to qualify for ABSD remission.
As the deadline approaches, negotiation flexibility increases dramatically.
4. Smaller Units With Tighter Financial Buffers
One- and two-bedroom units are typically bought by first-time investors with limited buffers.
In uncertain economic climates, those with tight budgets are more likely to need to liquidate their holdings fast if their incomes are at stake as compared to those with deeper pockets and access to alternative methods of financing.
5. Listings Stagnant for Over Six Months
Not all motivated sellers slash prices publicly.
Some owners grow tired of waiting or want to redeploy capital elsewhere. While their asking prices remain firm, they may be quietly open to serious offers.
This is where asking the right questions—or engaging a seasoned negotiator—makes a difference.
4 Practical Steps to Finding Fire Sale Properties
Step 1: Focus on Markets You Know Well
Profitable deals exist in all segments, but only if you understand pricing deeply.
Start by specialising in:
A specific district
A property type
Or even a shortlist of projects
Familiarity allows you to set a realistic target buy price—the number you’re confident is a true bargain.
Personally, I focus on condominiums in Districts 1, 2, 9, 10, 11, 15, 16, and 19, as well as select projects like The Sail @ Marina Bay and The Clift.
Rental demand and liquidity matter greatly to me.
There are also certain projects that are personal favourites that i monitor on a micro level such as The Sail @ Marina Bay, The Clift and several in Nathan Road, River Valley and Novena.
I like them for cash flow reasons as good and consistent rentals are 1 of my important rules of thumb when investing. You can read more about this here: (4 Important Entry Signals That Will Greatly Improve Your Property Investment Returns)
Not everyone plays the same game though and i have friends who monitor deals only at enbloc potential projects like Laguna Park, Neptune Court, Braddell View, Novena Court etc.
These however, usually have lower rental yields as they have aged considerably and lack the modern facilities that new projects have.
Step 2: Search Property Portals Consistently
Search on 99.co, EdgeProp.sg and PropertyGuru.com.sg using keywords such as the following:
Urgent, Fire sale, Serious Seller, Must Sell, Selling at Loss, Below Valuation etc.
If you're not sure how to do so, below are some example screenshots.
Example: For PropertyGuru, you can filter by keywords under the search box right below.
If you're using the mobile app, key the search terms into this box.
For 99.co, you will be able to key the fields here.
For EdgeProp.sg, it's even better as there are 2 fields that can help you narrow your search for fire sale properties. One of them is to select via "% under valuation" while the other is the typical keyword search like the others.
If you are kiasu/serious like i am, you should scout using all 3 portals regularly.
Step 3: Separate Real Fire Sales From Marketing Gimmicks
Not every “urgent” listing is genuinely discounted.
Some agents use buzzwords to generate interest, while some sellers prefer to leave room for negotiation.
To filter real opportunities:
Know your target buy price
Be ready to commit immediately
Submit serious offers backed by a cheque
Offers taken seriously are those backed by speed and credibility.
Generally, a meaningful fire sale is 10–20% below market valuation. This requires careful analysis of recent transactions and confirmation with bankers.
Always inspect the unit and review tenancy terms before proceeding.
Before you pounce, it is also important to check with a few bankers to triangulate that the property in question is indeed a good deal. (If you want the contacts to my private panel of proven & savvy advisers like bankers, mortgage brokers and lawyers on your side, drop me a note!)
In the event your offer is taken, always view the unit first in case of blind spots & sight the tenancy agreement terms and conditions before you hand over the cheque.
It is important to only make offers you intend to honour—your reputation matters more than any deal.
Important Tip: Always Compare Apples to Apples
Large units often transact at lower PSF, while smaller units command higher PSF.
Be cautious of:
Roof terraces
Patios
High ceilings
Void spaces
These features inflate size without improving usability, leading to misleading “cheap” pricing.
Step 4: Work With Area Specialists
If portal searches fall short:
Set up alerts (though they aren’t foolproof)
Contact agents specialising in your target districts
Share your exact buy criteria and price point
These agents often have off-market intel and can prioritise you when urgent deals surface.
Building relationships pays off.
Final Thoughts
Finding fire sale properties with built-in profits takes time, discipline, and persistence. There are no shortcuts—but the rewards can be substantial for those willing to do the work.
In an upcoming article, I’ll explain how investors unlock profits from fire sale deals—sometimes even achieving outcomes commonly marketed as “zero money down” strategies.
Yes, it can be done—when executed correctly.
Need an opinion on your property investment plans, the best buys available or help marketing your properties?
Get a 1-time free 30 min Property Wealth Planning consultation with Stuart and his team of advisers.
A PWP consultation includes:
- An in-depth financial affordability assessment and timeline planning
- Highly relevant investment insights
- A clear and customised investment road map
- A curated list of best buys in today's market with good growth potential & minimal risks
- Selecting units with the highest potential in a new launch project
- Advice on marketing and getting a buyer for your property fast
- Has your property stagnated in price? What are the reasons and options you have?
Stuart Chng, Executive Group District Director at Huttons, is a renowned leader and personality in the real estate industry.
He adores music and can play a few instruments decently without upsetting his neighbours. When not doing so, he enjoys pillow fighting with his son and coming up with silly puns which barely amuses his wife.
Professionally, he is a licensed real estate agent, an avid stocks & options trader, and real estate investor, business owner, team leader, speaker and columnist for several property newsletters and blogs and is often quoted in media interviews on 938FM, Channel 8, PropertyReport, PropertyGuru and other publications.
Throughout his career, he has helped many clients grow their wealth through selecting great property investments and managing their portfolios actively. Read his clients' reviews here.
Stuart has also coached many top million dollar producing agents from different real estate agencies in Singapore. Read his agents' reviews here.
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