Growth in Singapore’s private home prices slowed in 2022 home prices rose 8.4% in 2022.
Growth in private home prices slowed in 2022 : The Details
This is slower than the 10.6% growth registered in 2021, showed flash estimates from the Urban Redevelopment Authority (URA).
The prices increased 3.8% in the third quarter.
The prices inched up 0.2% in the fourth quarter. URA attributed the slight in price increases to a decline in private housing sales.
In fact, private home’s sale volume dropped by around 49% quarter-on-quarter and by about 60% year-on-year in Q4 2022. For the whole of 2022, sale transaction volume fell 36% from 2021.
Home Prices Growth in CCR, RCR and OCR for Q4 2022
Non-landed private home prices within the Core Central Region (CCR), the most prestigious areas in Singapore, only rose about 0.5% in the 4th quarter of 2022, after rising 2.3% in the 3rd quarter.
The Rest of the Central Region (RCR) posted a 2.6% hike in Q4 2022, versus the 2.8% increase in Q3 2022.
Prices in the Outside Central Region (OCR), on the other hand, fell 2.6%, a reversal from the 7.5% increase recorded in Q3 2022.
The decrease could be due to a lack of new major condominium launches after the Q3 launches of Lentor Modern, AMO Residence, and Sky Eden @ Bedok.
It will be interesting to see how the launch of Sceneca Residences will affect the Singapore’s private home prices in Q1 of 2022.
In addition, the 15-month wait out-period in HDB resale which would definitely affect the market for private resale, if not already. Indeed the Sept 30 2022 Property Cooling Measures are starting to impact the property market. The Fed’s continous increase in interest rates will continue to have an outsized impact in mortgages affordability.
The prices for private properties in the resale segment are unlikely to dip any time soon anyway due to limited supply and current private home owners are unlikely to lower their prices too.
Singapore is still a very attractive place for the rich and wealthy in the region and hence private home prices will not drop a lot. Read about how the super rich affected our Singapore Property Market.