See also: Private housing prices up a fifth consecutive quarter by a more sedate 0.9% in 2Q2021
The number of new home sales (excluding executive condominiums or ECs) are up by 27.1% q-o-q in the second quarter, reaching 2,258 units, says OrangeTee & Tie senior vice-president of research and analytics Christine Sun.
New homes, which constitutes a larger share of total sales in the second quarter, are typically sold at higher prices as compared to resale homes. The number of pricier transactions exceeding $2 million also increased, from 35.3% of total transactions in the first quarter to 38.3% in the second quarter, which further drove up prices, Sun adds.
“The sheer weight of demand is simply outpacing the backlog of supply as Singapore normalises from the pandemic years,” notes Leonard Tay, head of research at Knight Frank.
Private non-landed residential prices in the core central region (CCR) increased by 1.6% q-o-q in the second quarter, up from a 0.1% q-o-q decrease in the first quarter, based on URA caveats lodged. Generally characterised by prime homes, the increase in prices coincides with the easing of air travel from April, adds Tay.
“High-Net-Worth-Individuals in Asia are looking towards Singapore for private home investment opportunities, including luxury properties in prime areas despite the increased ABSD levied for foreigners,” he continues.
This includes the 20 units purchased for $85 million at CanningHill Piers by a Chinese national and an Indonesian family looking to buy 22 units at Draycott Eight.
Private non-landed residential prices in the rest of central region (RCR) clocked the highest growth, increasing by 6% q-o-q in the second quarter, up from a 2.7% q-o-q decline last quarter.
“The launch of Piccadilly Grand and LIV@MB in May reignited the market and captured homebuyers’ attention,” observes Tay.
Conversely, the growth of private non-landed residential property prices slowed in the outside central region (OCR), only increasing by 1.7% q-o-q in the second quarter as compared to 2.2% q-o-q previously. This segment represents mass market suburban homes, and are driven largely by HDB upgraders and new families. (Find HDB flats for rent or sale with our Singapore HDB directory)
Tay further notes: “We are seeing those using profits gained from selling their HDB units at robust prices in the resale market to finance their transition to the private residential market.”
Momentum in the landed property prices has slowed to a 2.9% q-o-q increase in the second quarter, from a 4.2% q-o-q growth last quarter. Dwindling sales from Good Class Bungalows (GCBs) due to a limited supply played a factor, He notes.
Private property prices are expected to taper for the remainder of the year, as homebuyers may be deterred by increased interest rates and lowered mortgage eligibility. He expects upcoming mass-market launches such as Sceneca Residences, Lentor Modern and AMO residences to play well with home upgrades and support continued price growth, despite higher borrowing costs., OrangeTee & Tie’s Sun believes the housing demand will remain resilient, predicting overall property prices to rise by 6% to 8%. However, Tay estimates a 5% to 7% increase this year.
Check out the latest listings near CanningHill Piers, Piccadilly Grand, LIV@MB, Sceneca Residence, Lentor Modern, AMO residence