Private homes prices in 2022 expected to rise up to 3%: Huttons

More foreigners could buy homes in Singapore which will cause price hikes.

The prices of private residential units in 2022 are projected to stay firm and rise up to 3% due to robust upgrading demand and foreigners wanting to buy homes in the Lion City, real estate agency Huttons Asia revealed.

Huttons Asia noted that construction costs may have soared during the Russia-Ukraine conflict but as the government imposed quarantine-free travel for vaccinated travellers from 1 April, more foreigners may purchase homes in Singapore. 

Also, the transaction volume in the resale market went down by 33.3%, on a quarterly basis, to an estimated 3,165 units in the first quarter of 2022. 

Huttons said prices remained flat, which reflected the resilience in the resale market despite the government ending of the COVID-19 support measures.

HDB owners are choosing a fast-moving HDB resale market to upgrade to a private home.  

For developer sales, Huttons found that 1,876 units were sold by developers in the first quarter of this year, which is 37.8% lower than the fourth quarter of 2021 and 46.3% lower than the first quarter of 2021.