The private home prices in Singapore accelerated during the final quarter of the year 2021, with a considerable jump of 5% in comparison to the past three months, even after the recently implemented property cooling measures.
For the entire year, the prices of property surged to 10.6% and it is the highest annual growth reported after the year 2010 when prices climbed by 17.6%. Note that in the year 2020, prices improved only by 2.2%.
The estimates from Urban Redevelopment Authority (URA) reveal that the fourth quarter presented robust performance while extending gains for the 7th straight quarter. It happened after prices increased by 1.1% during the third quarter of the year 2021, 0.8% during the second quarter, and almost 3.3% during the first quarter.
It also presented the highest quarterly rise right since the second quarter of the year 2010, when private home prices were reported to rise by 5.3%.
The overall growth in price for the previous year was supported by the non-landed segment as it jumped by 5.4% during the fourth quarter after reporting a slight rise of 0.7% during the third quarter. Analysts state that this improvement was mainly fuelled by resistant private resale prices as well as several new launches including Perfect Ten, CanningHill Piers, and Jervis Mansion that were reported to have record-high prices during the previous year.
Other than this, the prices of landed property improved by 3.7% during the fourth quarter in comparison to only a 2.6% rise during the previous quarter. This growth was supported by the impressive market condition of the good-class bungalow. The landed property price during the year 2021 jumped by almost 13.1% and it was the best growth since 2010 when prices sweep by 30.8%.
The landed market in Singapore was influenced by huge wealth creation from the biomedical and technology sector. Moreover, it was also affected by the impressive gains in the crypto and stock markets during the previous year.
Reports reveal that the city fringe caused the non-landed sub-markets to jump by 7.2% which is considerably high in comparison to the 2.6% gain during the previous quarter. Analysts state that the launch of CanningHill Piers with 696 units played an important role in this growth, out of which 582 units were sold at an estimated median price of $2886 psf.
The non-landed home prices, in the suburbs or outside the central region jumped by 5.4% while following a dip of 0.1% in the previous quarter. This segment of the Singapore housing market is greatly affected by HDB upgraders as they are benefited from the HDB resale market.
The prime districts, as well as the core central regions, gained a rise of 2.5% during the fourth quarter while following a fall of 0.5% during the third quarter. It was supported by new home sales, strong re-sales, and the opening of long-closed vaccinated travel lanes.
Reports also reveal that Perfect Ten, a new launch condo with 230 units in Bukit Timah Road presented subdued interest, even after providing a one-time discount of 5% over recently announced cooling measures. In short, the prices for the prime area during the year 2021 improved by 3.7%, while showing a rise of 16.9% for the city fringe and 8.4% for suburbs.
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