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\n19th April to 25th April 2022
\nDespite the property cooling measures, private home prices continued to increase in the first quarter of 2022, albeit at a much slower pace of 0.7%. HDB resale prices also increased at a slower pace of 2.4% in Q1 2022.
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\n1) Private home prices climb at a slower pace of 0.7% in Q1
\nZyanya is a new launch condo located at 8 Lorong 25A Geylang. The project launched in Q4 2021.
\nDespite the cooling measures, private residential property prices continued to increase in the first quarter of 2022, albeit at a much slower pace of 0.7% compared with the 5% growth seen in Q4 2021, showed Urban Redevelopment Authority (URA) data.
\nRelated article:\u00a0New Launch Condos and ECs for 2022: 11 Upcoming Projects We Can Expect
\nLanded homes led the price hike in Q1 2022, increasing 4.2% quarter-on-quarter \u201cas limited stock, healthy demand for Good Class Bungalows (GCBs), and strong take-up of strata-landed units at new launch Belgravia Ace helped to prop up landed home prices during the quarter\u201d, noted PropNex.
\nNon-landed private home prices, on the other hand, declined 0.3% quarter-on-quarter, marking its first quarterly drop since Q1 2020.
\nThe Rest of Central Region (RCR) registered the steepest price decline, with prices falling 2.7% in Q1 2022. The Core Central Region (CCR) also saw prices drop 0.1%, while the Outside Central Region (OCR) outperformed, with prices increasing 2.2% from the previous quarter.
\n\u201cThe dwindling unsold inventory of new units in the OCR as well as the healthy demand from HDB upgraders continued to support prices in the mass market,\u201d said PropNex.
\nOn the back of the December 2021 property cooling measures, the lack of major launches, and the\u00a0Chinese New Year festive lull period, the sales volume of private homes slumped in Q1 2022. However, prices continued to\u00a0hold steady, even increasing slightly overall, demonstrating\u00a0a resilient residential property market.
\nHowever, Dr. Tan Tee Khoon, Country Manager, PropertyGuru Singapore, believes upcoming RCR project launches, Piccadilly Grand and LIV @ MB, in Q2 2022 should bring more cheer to the market. \u201cThe North Gaia Executive Condominium (EC) project is expected to be well-received too,\u201d he adds.
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\n2) HDB resale prices rise at a slower pace in Q1 2022
\nResale prices of Housing and Development Board (HDB) flats rose at a slower pace of 2.4% in the first quarter of 2022, compared with the 3.4% growth posted in the fourth quarter of 2021, showed HDB data.
\nIn fact, it is the slowest quarterly growth since Q3 2020 when resale prices climbed 1.5% quarter-on-quarter.
\nIn Q1 2022, a total of 6,934 resale flats were sold, down 12.7% from the 7,940 units shifted in Q4 2021. On an annual basis, resale transactions declined 8.5%.
\nRelated article:\u00a0HDB Resale Flat Price 2022: Singapore Estates Ranked from Most Expensive to Most Affordable
\nAnalysts attributed the drop in transactions to the seasonal lull and tight supply of flats on sale.
\n\u201cThe delays in completion of new homes in both public and private markets delayed owners\u2019 decision to put their existing flats up for sale,\u201d said Huttons. \u201cThe cooling measures and global uncertainties also influenced owners to adopt a wait and see approach before they make their next housing decision,\u201d it added.
\nHomeowners will have to contend with rising interest rates in 2022 and beyond, with six more interest rate hikes expected this year alone.\u00a0MAS has already released an advisory to caution households in Singapore to exercise financial prudence.
\nDr. Tan Tee Khoon weighs in, \u201cWhile we will see another bumper crop of about 31,000 flats fulfil their MOP in 2022, prices are likely to trend upwards, albeit at a more measured pace. We are unlikely to observe a repeat of the spectacular price growths set in 2021.\u201d\u00a0
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\n3) New private home sales rebound 20.7% in March on easing of restrictions
\nNormanton Park was the best performing non-landed private residential project for Q1 2022, moving 253 units.
\nSales of new private homes, excluding ECs, increased 20.7% to 654 units in March from 524 units in February, according to URA data.
\nOn an annual basis, new home sales dropped 49.5% from 1,296 units in March last year.
\n\u201cThe private residential market showed some signs of recovery as developers sold more homes last month. Sales picked up after the Chinese New Year lull and the easing of Safe Management Measures,\u201d said Christine Sun, Senior Vice President of Research and Analytics at OrangeTee & Tie.
\nPropNex noted that the Rest of Central Region (RCR) led last month\u2019s sales as it accounted for 49% (320 units) of the total monthly sales. The Outside Central Region (OCR) saw sales bounce back, with 181 units changing hands, or up 11% from February.
\nRelated article:\u00a0Singapore District Map: Defining the CCR, RCR and OCR by the 28 Districts
\nSales in the Core Central Region (CCR) also increased 39.1% to 153 units from the 110 units sold in February.
\nCurrently,\u00a0demand in Singapore is primarily driven by locals, with foreign buyers taking a more cautious approach to new home sales, shifting only 81 units in Q1 2022, down from 155 units in Q4 2021.\u00a0\u00a0\u00a0
\nHowever, with the gradual relaxation of Safe Management Measures, we can expect more foreign buyers to take to CCR residential properties in the days ahead. These investors are likely to make purchases above $5 million as their interests lie in capital preservation, with a preference for properties in Singapore due to the country\u2019s offered stability.\u00a0
\nRelated article:\u00a0What You Need to Know if You\u2019re Buying Property in Singapore as a Foreigner (2022)
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\n4) 5 Oxley Rise up for sale, offers expected to exceed $300mil
\nSource: CBRE
\n5 Oxley Rise, one of the remaining freehold residential landed sites in District 9, has been put up for sale, revealed marketing agent CBRE.
\nConsisting of two land plots with a combined area of about 151,205 sq ft, the site houses a two-storey bungalow that served as the residence of various notable figures in Singapore such as Jewish businessman Sir Manasseh Meyer and real estate tycoon Cheong Eak Chong.
\nUnder the 2019 Master Plan, the site is zoned for \u201cResidential (two-storey mixed landed)\u201d use.
\n\u201cPotential developers and owner-occupiers, therefore, have the flexibility to consider a few residential landed options, such as redeveloping the site to accommodate a single large mansion, a strata or a mixed-use landed development, or multiple Good Class Bungalows (GCB), subject to approval from the relevant authorities,\u201d said CBRE.
\nMichael Tay, CBRE\u2019s Head of Singapore Capital Markets, expects the site to attract offers in excess of $300 million. The tender for 5 Oxley Rise closes on 8 June.
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\n5) Lakepoint Condominium relaunched for collective sale, price unchanged at $640mil
\nSource: Google Maps
\nLakepoint Condominium in Jurong has been relaunched for collective sale with its reserve price unchanged at $640 million, revealed exclusive marketing agent PropNex Realty.
\nThis works out to a land rate of around $959 to $982 per sq ft per plot ratio (psf ppr), including the development charge as well as the lease top-up premium from JTC.
\nPreviously launched for tender in October 2021, the development occupies a 562,286 sq ft site that is zoned for residential use under the 2019 Master Plan with a plot ratio of 1.4.
\nThe owners of Lakepoint Condominium had recently obtained URA\u2019s approval for higher height redevelopment, enabling the prospective buyer to build a mix of five-storey and 12-storey residential blocks, greatly enhancing the attractiveness of the site.
\nThe tender for Lakepoint Condominium closes on 8 June.
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\n6) Mortgage rates to increase a \u2018few times\u2019 this year
\nOrangeTee expects mortgage rates in Singapore to increase by a \u201cfew times\u201d this year, on the back of faster inflation growth globally, reported Singapore Business Review.
\nIt noted that global market movements highly influence the city-state\u2019s domestic interest rates. As such, the US Federal Reserve has announced plans to raise\u00a0interest rates up to six more times\u00a0this year.
\nHowever, the majority of flat owners in Singapore may not be too adversely affected by the interest rate hikes since the government has already set up safeguards such as adjusting the total debt servicing ratio (TDSR) and mortgage servicing ratio (MSR).
\n\u201cThe impact of the interest rate hikes is dependent on various factors like the loan quantum and the investment portfolio of a buyer\u2026 Although more buyers are taking loans from private institutions in recent years, the loan quantum for most flats is not large,\u201d said OrangeTee.
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\n7) Locals make up 80.3% of home buyers in Q1 2022
\nSingaporeans accounted for 80.3% of the residential property buyers in the first quarter of 2022, while permanent residents made up 16.3% and foreigners 2.9%, reported Singapore Business Review citing Huttons Asia.
\nRelated article:\u00a0HDB Resale Eligibility: Can a Singapore Permanent Resident (PR) Buy an HDB Flat in Singapore?
\nHuttons also revealed that homes valued under $1.5 million made up 41% of the total transactions in Q1 2022. Homes valued above $2 million made up 35.7%, while those between $1.5 million and $2 million accounted for 23.3%.
\nMeanwhile, ECs continued to attract buyers as an alternative to private living even as no new EC project was launched in Q1 2022. In fact, more than 32 ECs were shifted in Q1 2022, taking the unsold stock to 18 units as of March 2022.
\nRelated article:\u00a0Executive Condo Singapore (2022): 4 Upcoming ECs We Can Expect
\nAs we transition to living with COVID-19 as an endemic,\u00a0buying preferences for bigger homes and properties located in the OCR are expected to endure.\u00a0The OCR and RCR are expected to remain price drivers for H2 2022 in the private property market. OCR non-landed private properties hit the sweet spot between size and price point (of between $1 million to $1.5 million).
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\n8) Singapore office space prices up 4.4% in Q1, retail space prices drop 1.4%<\/p>\n