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\n4 April to 10 April 2023
\nPrices of HDB resale flats rose at a slower pace in Q1 2023, rising by 0.9% compared to the 2.3% hike seen in the fourth quarter of 2022. Meanwhile, private home prices in Singapore grew at a faster pace in the first quarter of 2023, increasing by 3.2% compared to 0.4% in the previous quarter.
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\n1. HDB resale prices were up 0.9% in Q1 2023, the smallest growth in the last 10 quarters<\/p>\n
Prices of HDB resale flats rose at a slower pace in Q1 2023, rising by 0.9% compared to the 2.3% hike seen in Q4\u00a02022, reported CNA citing HDB.
\nIt is also the smallest increase over the last 10 quarters.
\nAnalysts take the moderate growth as a sign of price resistance setting in.
\nEugene Lim, Key Executive Officer at ERA, said more buyers are exercising restraint when asked to raise their bid after the sellers turned down their initial offer to buy the flat.
\nLee Sze Teck, Senior Director for Research at Huttons Asia, said potential buyers may have also turned to the Build-to-Order (BTO) market given that over 10,000 BTO flats are expected to be launched over the coming months.
\n\u00a0\u201cSome of these flats may have shorter waiting times and may attract some buyers away from the resale market. The higher interest rate in 2023 may also deter buyers from the resale market and see them applying for a BTO flat,\u201d he said.
\nLooking ahead, analysts expect prices to continue to increase albeit at a slower pace of 5% to 8% compared to 2022\u2019s 10.4% and 2021\u2019s 12.7% increase.
\nAccording to\u00a0Dr Tan Tee Khoon, Country Manager \u2013 Singapore, PropertyGuru, HDB resale flat demand should gradually stabilise in 2023, as more BTO projects are completed, construction delays continue to alleviate, and more BTO flats are offered at the quarterly HDB launches.\u00a0
\n\u201cWe should expect the momentum of the price appreciation to slow and the HDB resale market to stabilise, barring any economic shocks,\u201d he added.
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\n2.\u00a0Private home prices rise 3.2% in Q1 2023<\/p>\n
Private home prices in Singapore grew at a faster pace in Q1 2023, increasing by 3.2% compared to 0.4% in Q4 2022, reported CNA citing the Urban Redevelopment Authority (URA).
\nThe hike comes even as sales dropped by around 8% quarter-on-quarter (QoQ) and by around 38% year-on-year (YoY) in Q1 2023.
\n\u201cThe 3.2% growth observed for overall property prices in Q1 2023 is indicative that prices are stabilising amid slower sales,\u201d said\u00a0Dr Tan Tee Khoon, Country Manager \u2013 Singapore,\u00a0PropertyGuru.
\n\u201cHowever, the prices for private properties are unlikely to drop in the near term. Despite the increasing gap in pricing expectations between sellers and buyers, sellers are still able to hold out and maintain high asking prices due to the tight labour and rental market,\u201d he added.\u00a0
\nThe Rest of Central Region (RCR) saw prices of non-landed private homes increase by 4% during the quarter, while prices in the Core Central Region (CCR) and Outside Central Region (OCR) grew by 1% and 1.9%, respectively.
\n\u201cThe slower sales indicate that declining affordability has taken a toll on some potential buyers who face the dual challenges of skyrocketing interest rates and continued price growth,\u201d said Christine Sun, Senior Vice President of Research and Analytics at OrangeTee & Tie.
\nHuttons Asia\u2019s Lee attributed the hike in private home prices to \u201cmore property launches\u201d as well as the return of buyers following the year-end seasonal lull in 2022.
\nHe noted that the marginal increase in property tax did not affect market demand \u201cas buyers chased after attractively priced homes in the market\u201d.
\nRelated article:\u00a0Singapore District Map: Defining the CCR, RCR and OCR by the 28 Districts
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\n3.\u00a0Record 21 4-room million-dollar HDB flats sold in Q1 2023
\nSingapore\u2019s resale market saw a record 21 4-room HDB flats sold for more than $1 million in Q1 2023, reported TODAY.
\nThis is triple the seven similar-type units sold over the same period last year, according to both HDB and PropNex Realty data.
\nAnalysts said the trend of four-room resale flats selling for over $1 million started in 2018, with the sale of a 96 sq m unit at Pinnacle@Duxton for $1.028 million in June 2018.
\nThey believe the introduction of HDB flats under the Design, Build and Sell Scheme (DBSS) in 2005, as well as the 15-month wait-out period, announced in September 2022, have contributed to the hike in prices.
\nMore people are also willing to spend over $1 million for flats located near the city centre as private property prices have been on the uptrend.
\n\u201cAs resale prices climbed after Covid, more buyers turned to four-room flats in 2023 as they are more affordable,\u201d said Lee Sze Teck, Senior Director for Research at Huttons Asia.
\nAnalysts expect 4-room million-dollar flats to be more common. In fact, industry expert Nicholas Mak sees the trend continuing for the next 10 years due to the lack of five-room flats in popular areas within mature estates and in prime location housing areas.
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\n4.\u00a0Some expats turn to HDB flats amid rising rents for condo units
\nA growing number of expats are moving into HDB flats, amid rising inflation and rents for private condominium units, reported TODAY.
\nURA data showed that rental prices for private homes rose to their fastest pace in 15 years in 2022.
\nWith this, property agents and analysts have noticed an uptick in rental enquiries for HDB flats among expats since last year. Some were open to renting flats that are of high quality and located closer to downtown areas as well as public transportation.
\nIn fact, PropNex property agent Corraine Choo has closed about four to five deals a month for expats renting HDB flats, double the number she closed per month last year.
\n\u00a0\u201cThe salaries of expats are not increasing as much as the rent for a condo unit, it\u2019s quite scary. It\u2019s almost a 100% increment to rent a condo compared to two years ago,\u201d she said.
\nChristine Sun, OrangeTee & Tie\u2019 Senior Vice President of Research and Analytics, noted that the number of expats moving into HDB flats is currently low to significantly affect the HDB rental market.
\nHowever, if demand from such a group of tenants increases, it could possibly push HDB rental prices higher, she added.
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\n5. Freehold property at 64 Wilkie Road relaunched for en bloc sale
\nA freehold residential site located at 64 Wilkie Road has been relaunched for collective sale, with the guide price reduced to $10 million, revealed PropNex Realty.
\nThis works out to a land rate of $1,348 per square foot per plot ratio (PSF PPR), inclusive of the 7% balcony space as well as the\u00a0Land Betterment Charge (LBC).
\nThe property was first launched for an en bloc sale with an adjacent site at 62 Wilkie Road for $19.5 million in November last year. The tender closed with no bids received.
\nThe site at 64 Wilkie Road currently houses five residential strata units. The building occupies a 3,306 sq ft site that is zoned for residential use under the 2019 Master Plan with a gross plot ratio of 2.1.
\nPropNex Realty\u2019s Head of Investment and Collective Sales Tracy Goh expects the property \u201cto appeal to family offices and high net worth individuals who may purchase this residential building for multi-generation families to live together and\/or for investors to hold this prime residential building for legacy planning and strong recurring income\u201d.
\n\u00a0The tender for 64 Wilkie Road closes on 12 May 2023.
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\n6. Investment sales down 61% in Q1 2023<\/p>\n
Real estate investment deals were off to a slow start, with just $4.2 billion of investment sales registered in Q1 2023.
\nThis marked a 61% decline from the $10.8 billion recorded in Q1 2022 and was the lowest quarterly total since Q2 2020, when the city-state was placed under the circuit breaker, revealed Knight Frank.
\nThe residential market saw $1.6 billion in deals, comprising en bloc sales amounting to around $583.8 million.
\nThe commercial market was quiet for the most part of the quarter, but the sale of 39 Robinson Road pushed the total sales for the sector to $1.9 billion.
\nThe industrial market recorded a 62.8% QoQ\u00a0increase in sales to $681.1 million in Q1 2023. Knight Frank attributed the hike to the market shifting focus while waiting on the potential repricing of assets within the commercial sector.
\nKnight Frank expects the pace of investment activity in Singapore \u201cto get worse before it gets better\u201d, with investment sales forecasted to range between $20 billion and $22 billion for the whole of 2023. This is down from the earlier projection of between $22 billion and $25 billion.
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\n7. GuocoLand-Hong Leong Holdings JV lone bidder for Lentor Gardens site
\nThe tender for a residential site at Lentor Gardens closed on 4 April\u00a02023, with a joint venture between GuocoLand and Hong Leong Group submitting the sole bid of $486.8 million or $985 PSF PPR, according to\u00a0URA.
\nTricia Song, Head of Research for Southeast Asia at CBRE, noted that the price is at the lower end of market expectations. In fact, it is the lowest bid for a land plot within the Lentor precinct.
\n\u00a0\u201cWhile this is not totally unexpected, due to the competitive dynamics of the site \u2013 it being the fifth out of seven and more successive sites to be tendered in the Lentor precinct \u2013 we believe it also reflects increasing caution among developers,\u201d she said.
\nSpanning 21,866.7 sq m, the 99-year leasehold site has a maximum permissible gross floor area of 45,921 sq m and could yield 530 housing units.
\nWith this, Song expects the developer to launch the Lentor Gardens site at $2,000 to $2,100 PSF.
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\n8. Collective sale market muted amid widening price gap between owners, developers\u2019 expectations
\nThe collective sale market has been relatively muted as the price gap between owners\u2019 and developers\u2019 expectations has widened by up to 15%, reported The Business Times.
\nKnight Frank noted that the current 2021\/2023 cycle has seen only a third of en bloc sales succeed, down from 63% in the 2017\/2018 boom cycle.
\nJLL\u2019s Executive Director of Capital Markets for Singapore Tan Hong Boon attributed the 15% price gap to rising interest rates and construction-related costs.
\nChia Mein Mein, Head of Capital Markets (Land and Collective Sale) at Knight Frank, also pointed to the higher cost of replacement properties. Notably, private home prices rose by 20% to 30% over the year.
\nFactors such as the harmonisation of floor-area definitions \u2013 which will reduce developers\u2019 saleable area \u2013 may also affect pricing.
\nWith this, developers remain \u201cvery, very cautious\u201d even as their inventories are low, while owners are not keen on reducing their prices.
\nHowever, developers may have to eventually raise their bids once the market stabilises and new sale prices continue to increase.
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\n9. Demand for co-living space to moderate, following two years of increase<\/p>\n
Demand for co-living spaces in Singapore has increased over the past two years, with operators registering strong occupancy of at least 80%, reported The Business Times.
4 April to 10 April 2023 Prices of HDB resale flats rose at a slower...<\/p>\n","protected":false},"author":1,"featured_media":135852,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-135851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2023\/04\/hdb-flats-in-singapore.jpg?fit=820%2C410&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-zl9","jetpack-related-posts":[{"id":120572,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/private-home-prices-hdb-resale-prices-continue-to-increase-in-q2-2021\/","url_meta":{"origin":135851,"position":0},"title":"Private home prices, HDB resale prices continue to increase in Q2 2021","date":"July 1, 2021","format":false,"excerpt":"\r Private home prices, HDB resale prices continue to increase in Q2 2021Private home prices and HDB resale prices continue to increase in the second quarter of 2021, showed the URA and HDB flash estimates.\u00a0 Singapore saw private home prices and HDB resale prices continue to increase in the second\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/07\/HDB-MRT-station.jpg?fit=819%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":86794,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-resale-prices-down-0-8-in-q1\/","url_meta":{"origin":135851,"position":1},"title":"HDB resale prices down 0.8% in Q1","date":"April 30, 2018","format":false,"excerpt":"\r This is the highest decline seen for resale flat prices in over two years.\u00a0 Prices for HDB resale flats fell by 0.8 percent in the first quarter of 2018 \u2013 its highest decline for the last nine quarters since Q1 2016, according to more complete data released by the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":125906,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/private-home-prices-hdb-resale-prices-rise-at-slower-pace-in-q1-and-more\/","url_meta":{"origin":135851,"position":2},"title":"Private home prices, HDB resale prices rise at slower pace in Q1 and more","date":"April 25, 2022","format":false,"excerpt":"\r 19th April to 25th April 2022 Despite 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. \u00a0 1) Private home\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2022\/04\/singapore-ann-siang-hill.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":106584,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/private-home-prices-hdb-resale-prices-down-in-q1-2019\/","url_meta":{"origin":135851,"position":3},"title":"Private Home Prices, HDB Resale Prices Down In Q1 2019","date":"April 26, 2019","format":false,"excerpt":"\r Private home prices in Singapore fell 0.7 percent in the first quarter of 2019, notably larger than the\u00a00.1 percent decrease registered during the previous quarter, showed the Urban Redevelopment Authority (URA) data on Friday (26 April). It is also a notch higher than the 0.6 percent drop estimated by\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":20866,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-resale-flat-prices-stay-flat-in-q2\/","url_meta":{"origin":135851,"position":4},"title":"HDB resale flat prices stay flat in Q2","date":"July 22, 2016","format":false,"excerpt":"\r HDB resale transactions were up last quarter, signalling a return of confidence in the market. Prices of HDB resale flats remained unchanged during the second quarter, after dipping by 0.1 percent in the first three months of 2016, according to more detailed public housing data published by the Housing\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":125720,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/private-home-hdb-resale-prices-up-in-q1-2022-north-gaia-to-open-for-preview-e-applications-on-thursday-and-more\/","url_meta":{"origin":135851,"position":5},"title":"Private home, HDB resale prices up in Q1 2022, North Gaia to open for preview, e-applications on Thursday and more","date":"April 4, 2022","format":false,"excerpt":"\r 29th\u00a0March\u00a0to 4th April 2022 Private home prices and HDB resale prices continued on an upward trend, increasing 0.4% and 2.3%, respectively, in the first quarter of 2021. Meanwhile, North Gaia, Sing Holdings\u2019 executive condominium (EC) project\u00a0in Yishun\u00a0is set to open for preview and e-applications on Thursday, 7 April. \u00a0\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2022\/04\/singapore-old-airport-road.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/135851"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=135851"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/135851\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media\/135852"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=135851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=135851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=135851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nThis comes as more Singaporeans turn to them as a more affordable option amid the surge in residential rents.
\nThe local segment accounted for 7% of co-living tenants prior to the pandemic, before peaking at 34% in Q4 2021 and dropping to 18% in Q4 2022, according to Cushman & Wakefield\u2019s December 2022 report.
\nDespite the dip in local demand, Cushman & Wakefield sees overall demand for co-living spaces to recalibrate lower but remain above pre-pandemic levels.
\nMeanwhile, the supply of co-living spaces has also grown, with over 677 units added to the current stock. Big players such as LHN\u2019s Coliwoo, The Ascott\u2019s lyf, The Assembly Place (TAP), Hmlet and Cove dominate the market, holding over 5,000 units.
\n\u00a0
\n10. Singapore industrial sales drop 11.6% to $799.4 million in Q1 2023
\nThe industrial property market saw sales decline 11.6% QoQ to $799.4 million in Q1 2023, amid softer business expectations, reported Singapore Business Review citing Knight Frank.
\nThe property expert revealed that around 97.3% of the caveats lodged in Q1 2023 were for deals of $10 million or lower.
\nNonetheless, the quarter also saw large deals, which include Cycle & Carriage\u2019s $333 million sale of four properties to M&G Real Estate and the sale of the J\u2019Forte Building for almost $100 million to Boustead Industrial Fund.
\nKnight Frank noted that the leasing volume for multiple-user factories also dipped 1.5% to 1,548 tenancies during the first two months of 2023 compared to the first two months of Q4 2022.
\nHowever, median rent rose 4.7%\u00a0QoQ to $2.01 per sq ft per month (PSF PM).
\nBusiness parks, on the other hand, saw leasing deals jump 66.7% to 70 tenancies in January and February 2023 compared to the first two months of Q4 2022. Median rents for business parks also increased 1.4%\u00a0QoQ to $4.22 PSF PM.
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u202fListings,\u202fProject Reviews\u202fand\u202fGuides.\u00a0
\nFarhan Shafie, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: farhanshafie@propertyguru.com.sg.\u00a0
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…HDB Resale Prices Up 0.9% in Q1 2023, Smallest Growth in Last 10 Quarters, Private Home Prices Rise 3.2% in Q1 2023, and More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"