Private residential prices to increase up to 8% in 2022
Prices already rose at a faster pace in Q2, rising 3.5%.
Private residential prices will likely increase up to 6% to 8%, according to property experts.
In Q2, prices already climbed faster, rising by 3.5%. OrangeTee said the larger increase was on the back of more new sales sold at higher prices than resale homes.
“There was also a higher number of pricier transactions of at least S$2 million in Q2,” added OrangeTee.
Huttons and One Global Group echoed this, adding that strong demand from foreigners also contributed to the pickup of prices.
Data from Urban Redevelopment Authority (URA) showed that foreign purchases increased by 3.9% YoY from 281 units in Q2 21.
“The recent recovery in the primary and secondary residential property market is a result of the improvement in foreign buying behaviours and the positive sentiments surrounding new home sales and the resale market,” One Global Group said.
In Q2, there were 2,397 private residential units (excluding ECs) sold, and 4,236 resale transactions.
Meanwhile, Huttons said sales from major projects also contributed to the price gains across major markets, citing Piccadilly Grand and LIV @ MB located in the Rest of Central Region (RCR).
PropertyGuru shared the sentiment saying prices in RCR rose on the back of the strong performance of new launches in the segment.
Unlike the RCR, the Outside Central Region (OCR) posted slower gains in Q2 as more are returning to the office, and daily work commutes are becoming the norm again.
“Attention is likely to shift away from new launches in the OCR. Still, the buying preference for larger homes endures, contributing to a lasting interest in OCR properties,” PropertyGuru said.
Looking ahead, OrangeTee said prices will likely rise by 6% to 8% in 2022 as macroeconomic influences play a more central role in determining property prices in the second half of 2022.
In the short-term, Property Guru said more major new condo and EC launches in OCR and RCR will give prices a further boost in Q3.
Huttons specifically cited K Suites, Kovan Jewel, Lentor Modern, Sky Eden @ Bedok and The Arden as projects which will likely drive price gains in 3Q 2022.
“Foreigners are continuing to buy homes in Singapore and will support prices in the Core Central Region and Rest of Central Region,” added Huttons.