{"id":124195,"date":"2022-01-11T06:42:32","date_gmt":"2022-01-10T23:42:32","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/private-property-and-hdb-prices-touch-record-highs-in-2021-growing-rental-demand-in-2022-and-more\/"},"modified":"2022-01-11T15:04:04","modified_gmt":"2022-01-11T08:04:04","slug":"private-property-and-hdb-prices-touch-record-highs-in-2021-growing-rental-demand-in-2022-and-more","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/private-property-and-hdb-prices-touch-record-highs-in-2021-growing-rental-demand-in-2022-and-more\/","title":{"rendered":"Private property and HDB prices touch record highs in 2021, growing rental demand in 2022, and more"},"content":{"rendered":"


\nPrivate property and HDB prices touch record highs in 2021, growing rental demand in 2022, and more3rd January to 10th January
\n2021 ended on a high for the Singapore property market. As supply for private property and HDB flats dipped, prices peaked. The response from the Singapore government was a round of cooling measures announced in late December 2021.
\n\u00a0
\n1. Enhanced protection, more accurate information for homebuyers among proposed changes to Housing Developers Rules
\nThe Urban Redevelopment Authority (URA) has launched a public consultation on the proposed changes to the Housing Developers Rules (HDR). Under the proposed changes, developers are required to provide more information regarding their housing projects such as the storey layouts, location of key communal facilities as well as information on ground rent payable and the landowners\u2019 identity.
\nTo enhance the protection of home buyers, URA also proposed amendments to the terms within the standard Sale and Purchase Agreement. These include:<\/p>\n

Reducing the threshold for claims for shortfall in the area of a unit to 2%, from 3% currently
\nMoving the commencement of the 12-month defects liability period and home buyer\u2019s obligation to pay maintenance charges closer to the date home buyers take possession of their properties<\/p>\n

While the changes are beneficial to buyers, Lee Sze Teck, Senior Director (Research) at Huttons Asia, noted that the proposed changes \u201cplace a larger burden on developers and add to the costs of compliance\u201d. He pointed that some of these costs \u201cmay eventually be passed on to buyers\u201d.
\nWith the cooling measures in place, there will likely be a shift towards buying private property for own stay. The probability of these properties being the owner\u2019s sole unit is also higher. These rule changes mark a step towards enhancing consumer protection, which is beneficial for ensuring these owner-occupiers live in a well-built property.
\n2. Private home prices rose 10.6% in 2021
\nSingapore saw private home prices jump 10.6% in 2021, the highest since 2010 when prices rose 17.6% and significantly higher than the 2.2% gain registered in 2020. Flash estimates from the Urban and Redevelopment Authority (URA) showed that private home prices accelerated for the seventh consecutive quarter in Q4 2021, rising by 5% compared to the 1.1% growth in Q3 2021.
\nWith the rollout of the new property cooling measures, ERA\u2019s Key Executive Officer Eugene Lim expects 2022 to be a genuine home buyer\u2019s market, with the first six months being tough due to a mismatch of seller\u2019 and buyers\u2019 expectations. And with private property transactions for 2022 \u201cunlikely to be anywhere near 2021\u2019s record levels, we are likely to see property prices remain flat or at most, continue to increase very moderately by 1 to 3% over the course of the year\u201d, he said.
\nDue to the government tightening the land supply for the Government Land Sales (GLS) Programme, we\u2019re still looking at tapering supply in 2022. As it is, we\u2019re only expecting 11 new ECs and condo launches for the year. Due to limited supply, the prediction for private properties to be a more \u201cgenuine home buyer\u2019s market\u201d, and the newly introduced cooling measures, it can be safe to assume private home prices are likely to increase, but at a slower pace.
\nStill, this is not a sign to go on a property spending spree. As interest rates are expected to gradually rise, homeowners should exercise caution before upgrading from an HDB flat to private property, or from a smaller to larger private property.<\/p>\n

3. HDB resale prices up 12.5% in 2021
\nResale prices of Housing and Development Board (HDB) flats increased 3.2% in Q4 2021 and 12.5% for the whole of 2021, showed flash estimates from the Housing Board. Huttons Asia noted that resale prices picked up pace in Q4 2021 after remaining steady at about 3% in the past three quarters.
\nGiven the strong demand for HDB resale flats, ERA\u2019s Key Executive Officer Eugene Lim expects prices to further increase in 2022. With higher resale prices and more Build-to-Order (BTO) offerings from HDB, Lim believes that Singapore is unlikely to register the same resale volume as recorded in 2021. \u201cWith lesser transactions of around 25,000 for 2022, the pace of price increase in the resale HDB market may slow down,\u201d he added.
\nUntil the BTO construction delays are resolved, it is unlikely that the demand for HDB resale flats will dip. Consequently, prices are likely to continue increasing. All we know is, public housing affordability has become an increasingly hot topic, especially among younger Singaporeans.
\nRelated article:\u00a073 Freshly MOP-ed HDB Resale Flats in Singapore to Expect in 2021\/2022
\n4. Recent property cooling measures timely
\nThe introduction by the government of its latest property cooling measures has been timely, given the double-digit hike in private and public home prices in 2021, outpacing Singapore\u2019s preliminary gross domestic product growth of 7.2%, reported The Straits Times (ST).
\nThe tightening of borrowers\u2019 total debt servicing ratio (TDSR), for instance, would prove helpful in ensuring that households are not overstretched, given the potential increase in interest rates this year.
\nBut while analysts expect the new curbs to moderate price growth across public and private markets, the measures will unlikely turn the sellers\u2019 market into a buyers\u2019 market overnight. This comes as unsold home inventory is now at record low levels. JLL\u2019s Senior Director of Research and Consultancy Ong Teck Hui said developers face less pressure to reduce prices, \u201cespecially if they are in a healthy financial position\u201d.
\nTypically, it takes one or two quarters before the effects of cooling measures are seen. More time is needed before we can ascertain the results of the newly introduced policies. Still, the move comes at an apt time; hopefully, this will contribute towards improving housing affordability.
\nRelated article:\u00a0HDB to EC, Condo, or Landed Property: How Much Must You Save to Upgrade in Singapore (2021)<\/p>\n

5. Singapore to see dwindling private home supply, growing rental demand in 2022
\nWith unsold private home stock falling to its lowest level in about four years at 17,140 units as of end-Q3 2021, analysts see fewer units from new launches in 2022, reported Channel News Asia (CNA).
\nThis comes after the government moderated the supply from the Government Land Sales (GLS) Programme over the last two years, said Christine Sun, Senior Vice President of Research and Analytics at OrangeTee and Tie. Huttons Asia\u2019s Senior Director of Research Lee Sze Teck believes that about 5,400 units will be offered across some 40 launches this year, down from 2021\u2019s over 10,500 units.
\nMeanwhile, Singapore\u2019s rental market may witness a growing demand, amid construction delays as well as the re-opening of the city-state\u2019s borders. Notably, rental rates for private homes rose 7.1% during the first three quarters of 2021 and will likely continue to gain pace. Sun expects rents to rise at a faster pace of 8 to 11% in 2022, with leasing volume climbing by 3 to 4%.
\nWe see several groups competing for private home rentals in 2022. Foreigners and locals who are deterred by high HDB resale flat and private property prices (with foreigners paying higher ABSD rates thanks to the new cooling measures); millennials looking to rent for more space due to enduring work from home arrangements; young couples and families affected by BTO construction delays. Demand from these groups is likely to keep rental prices high in 2022.
\n6. Government releases seven sites under 1H 2022 for Industrial GLS
\nThe Ministry of Trade and Industry (MTI) has launched seven sites with a total area of 4.48ha under its Industrial Government Land Sales (IGLS) programme for 1H 2022. The IGLS list comprises three Confirmed List sites and four Reserve List sites. The Confirmed List sites are located in Plot 4 Jalan Papan, Plot 10 Tampines North Drive 5 and Plot 2 Tanjong Penjuru. For the Reserve List sites, two are in Jalan Papan, while the other two are in Tampines North Drive 5 and Woodlands Industrial Park.
\n7. More unable to repay full CPF amount after selling property in 2020
\nIn 2020, about 4,580 persons who used their Central Provident Fund (CPF) monies to finance their mortgages were incapable of fully refunding the amount after having sold their properties. Data published by the CPF Board showed there was an increase from 2019 and 2018, where about 3,960 and 3,380 people failed to do so, respectively.
\nHowever, none of these persons was required to top up their CPF in cash. Having been able to sell their properties at market value allowed them not to do so.
\nThis statistic highlights how \u2018paper gains\u2019 are not adequate to negate transaction and financing costs in today\u2019s property market. MAS previously released an advisory in December 2021, cautioning homeowners to exercise prudence in the wake of mortgage interest rates being expected to gradually rise in 2022 and beyond.
\nRelated article:\u00a0CPF Housing Loan in Singapore: Can I Use CPF to Buy Condo or HDB Flat? Yes, but Here Are 4 Reasons Not To<\/p>\n

8. MCT, MNACT propose merger
\nThe managers of Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) have proposed a merger that will make the combined entity one of Asia\u2019s top 10 largest real estate investment trusts (REIT).
\nThe combined entity, to be named Mapletree Pan Asia Commercial Trust (MPACT), will have a market capitalisation of about $10.5 billion and will serve as a \u201cflagship commercial REIT positioned to be the proxy to key gateway markets of Asia\u201d, said the managers in a joint release.
\nThey noted that the merger would be done via a trust scheme of arrangement with MCT acquiring all MNACT units in exchange for new units in MCT or a mix of cash and MCT units. MNACT unitholders will get a scheme consideration of $1.1949 for each unit held as at the record date, taking the total scheme consideration to $4.215 billion.
\nRelated article:\u00a0REITs Vs Property in Singapore: 6 Factors Comparing Which Is a Better Investment
\n9. Ascott registers record growth in units in 2021 despite COVID-19
\nThe Ascott, the wholly-owned lodging business unit of CapitaLand Investment Limited (CLI), has secured 15,100 units across 72 properties globally in 2021, marking the fifth straight year it registered record growth in units despite the COVID-19 pandemic.
\nServiced residences accounted for over 60% of the new signings. CLI\u2019s Chief Executive Officer for Lodging Kevin Goh said over 80% of the new units secured last year were under management and franchise contracts, which was in line with the asset-light growth strategy of Ascott.
\nAscott also closed 2021 with its highest-ever property openings as it launched more than 8,200 units across 40 properties in 10 countries. The figure is more than double the units opened in 2020.
\nRelated article:\u00a0Guide to Your First Investment Property: Singapore or Overseas?
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nCheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email:\u00a0cheryl@propertyguru.com.sg.
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Private property and HDB prices touch record highs in 2021, growing rental demand in 2022, and more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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By Khalil Adis The Singapore property market faces a lacklustre year ahead as the various cooling measures, interest rate hikes and more unsold units\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":45318,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/news-roundup-february-2017\/","url_meta":{"origin":124195,"position":1},"title":"News Roundup (February 2017)","date":"February 24, 2017","format":false,"excerpt":"\r \u00a0 Our top Singapore property stories. Higher demand expected for HDB resale flats: experts HDB resale flats have become more appealing for first-time buyers in light of the higher CPF housing grants announced as part of Budget 2017, said Eugene Lim, Key Executive Officer at ERA Realty Network. \u201cBuyers\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2017\/02\/Luxury-apartments-in-Singapore-1024x680.jpg?fit=1024%2C680&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":93893,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-market-to-benefit-from-new-cooling-measures\/","url_meta":{"origin":124195,"position":2},"title":"HDB market to benefit from new cooling measures","date":"July 16, 2018","format":false,"excerpt":"\r While the government\u2019s latest round of property cooling measures may prove to be a bane for en bloc sale aspirants, some developers and home loan providers, some analysts expect the new curbs to benefit the HDB market in the near-term, reported Singapore Business Review. Larger HDB units may witness\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":123833,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-unveils-new-property-cooling-measures\/","url_meta":{"origin":124195,"position":3},"title":"Singapore unveils new property cooling measures","date":"December 16, 2021","format":false,"excerpt":"\r Singapore unveils new property cooling measuresThe new Singapore property cooling measures, which include a higher ABSD, lower TDSR, and tighter LTV, will take effect from today, 16 December 2021. 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