The Singapore real estate market is known for its red hot private properties that experience sizzling price variations every year. However, as per the recent reports, the overall price growth for property slowed down by almost 0.4% during the first quarter of 2022.
Analysis reveals that the recent quarter marked the slowest price increase on a quarter on quarter basis. The last rise was reported in the second quarter of the year 2020, when prices went up by 0.3%. This trend further experienced a rise of 5% during the fourth quarter of the year 2021, which is the highest quarterly release reported after the second quarter of the year 2010, when prices of property increased by 5.3%.
Several aspects are responsible for the considerable fall in the property prices, such as the Russia-Ukraine conflicts, the sharp surge in the Covid-19 crisis, and the Chinese New Year. The head of the research wing at CBRE, South East Asia, recently reported that the new launches of this quarter were actually restricted to the smaller boutique housing projects because developers preferred a wait-&-see approach after recent cooling measures. In a similar manner, buyers also held back in the market due to reassessing the property market.
Nicholas Mak, the head of the research and consultancy department in ERA Singapore, recently stated that the reduced transaction volumes in the Singapore housing market led to weaker price growth. Observations state that almost 1600 new homes and almost 2600 resale units were sold during the first quarter of this year; however, these stats do not include executive condominiums. However, it is considerably less than the sales reported from the previous quarter with 4748 resale homes and 3018 new homes.
The minute rise in the price was mainly due to the landed property segment that reported improvement in gains by 4% in the previous quarter. It is reported as the highest quarterly rise since the very first quarter of the year 2021, when a hike of 6.7% was reported by experts. The landed prices also increased by 3.9% during the fourth quarter of the previous year.
The head of research at Singapore’s Cushman & Wakefield, Mr. Wong Xian Yang, recently stated that the landed property segment stayed unaffected by the recently implemented cooling measures as the demand for properties is driven by owner-occupiers as well as due to the limited supply of such homes.
Consequently, the non-landed properties may suffer from price fall during the first quarter when compared to the drop of 0.6% reported in the first quarter of the year 2020. It is reported that only outside central regions and suburbs experienced a gain in property prices by 1.9% in this quarter in comparison to the 5.7% surge reported in the previous quarter. As the supplies of new homes are reduced in the suburban areas, the total stock of unsold new launch condos may decline exponentially every month.
Other than this, the housing board upgraders and mass-market home buyers are least affected by cooling measures since most of them do not own more than one property.
Find out more information from the article below,
https://www.straitstimes.com/business/property/singapore-private-home-price-growth-slows-sharply-in-q1-on-cooling-measures
New Launch Condo
Exclusive Living In Singapore
