Prices of non-landed private homes decline for the first time since 2020
The prices dipped by 0.6% in Q1 2022.
For the first time since the first quarter of (Q1) 2020, prices of non-landed private homes declined, dropping 0.6% quarter-on-quarter (QoQ) in Q1 2022.
The decline in prices was also seen in the Core Central Region (0.5% QoQ), and the Rest of Central Region (3.0%).
On the other hand, prices Outside Central Region (OCR) inched up 1.9% QoQ in Q1 2022.
According to Knight Frank, the repression of home prices’ upward trajectory was likely due to the government's cooling measures and the seasonal Chinese New Year lull.
These same factors also led to the 42.2% lower non-landed private home, excluding Executive Condominiums, transactions, according to the analysts.
In Q1 2022, there were only 4,071 transacted private homes.
“Buyers and sellers in both the primary and secondary markets held back, leading to a cycle where transactions stalled,” Knight Frank said.
The analyst added that some buyers were also pushed to the resale market due to the “ lack of choice new launch units and longer construction timelines” in the private residential market.
Looking ahead, Knight Frank said transaction volume for private homes will likely pick up some time inQ2 2022 “as developers start to launch projects, especially those in choice locations and as the VTF gains momentum.”
For the entire year, the analysts expect new sale volumes of non-landed private homes to reach around 8,000 to 9,000 units.
On prices, Knight Frank said increases will likely be more subdued by around 1% to 3%. Meanwhile, 7%-9% increases are projected for rents for the whole of 2022.