Residential property prices to climb by 7% in 2022: report

This will be driven by the flight to the safety of real estate amidst inflation.

Residential property prices could rise by 7% year-on-year in 2022 as the industry serves as a hedge against inflation and the shrinking inventory of unsold stock, Savills reported. 

Despite the higher rates of Additional Buyer’s Stamp Duty, Savills said the zero-COVID policy implemented by China and the war between Ukraine and Russia has led to increases in commodity price that made investing in residential real estate more attractive.

With global infl ation expected to persist for the rest of 2022, the yearning to hedge against it using residential properties will remain strong, despite expectations that interest rates are expected to rise further,” Savills noted in its May 2022 Singapore residential sales report.

“The other reason why the market has so far been immune to hitherto and expected rate hikes is that the Total Debt Servicing Ratio had used a notional 3.5% mortgage rate to compute mortgage quantum and tenure.”

Between January 2021 and the May 2022, the one-month and three-month compounded Singapore Overnight Off er Rate rose by just 0.5% and 0.29% to 0.75% and 0.46%, respectively. Effectively, mortgagors  pay around 1.5% to 1.6%. For two to three-year fi xed rates, it is about 2.2% to 2.6%, which is still a wide gap from the 3.5% TDSR rate.


Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!