Transaction volume of private homes declines 9.7% in Q3 22
Overall transactions of private residential houses was at 6,148 units.
The overall sales volume of private homes fell by 9.7% quarter-on-quarter (QoQ) in the third quarter (Q3) of 2022 to 6,148 units from 6,811 units in the previous quarter, a real estate report showed.
“This is due to macroeconomic headwinds, rising interest rates and a slowdown in sales activities during the Hungry Ghost month that happened from 29 July to 26 August 2022,” Edmund & Tie said in its report.
The residential overall price index, meanwhile, went up for the 10th straight quarter. It grew 3.% in Q3 2022.
Landed homes prices went up by 1.6% QoQ whilst prices of non-landed properties rose by 4.4% in Q3 2022.
Within the non-landed properties, the largest price increase in Q3 2022 was in the Outside Central Region (OCR) at 7.5% QoQ.
On unit size, the non-landed median price of unit size saw the largest increase of 11.1% QoQ, which stemmed from new launches including Lentor Modern, AMO Residence, and Sky Eden@Bedok.
Unit size, foreign buyer
The share of homes sold to foreigners was still stable at 4.7% in Q3 2022, from 4.8% in the previous quarter whilst rising interest rates and ongoing geopolitical tensions continue.
Foreign demand increased both in the Rest of the Central Region with 4.7% and OCR with 2% in Q3 2022.
“This is likely that foreign buyers are casting their nets wider to include more affordable properties located in the fringe and suburban locations, amid rising prices,” said Edmund & Tie.
Prices to soften
Next year, the real estate expert said the private home price is seen to soften to about 9% compared to 10.6%.
Edmund & Tie said it expects primary sales of about 7,000 to 8,000 units could rise by about 1-3% in 2023 “barring a further deterioration in economic conditions or new cooling measures."