Private home prices up 3.8% in Q3 of 2022 : Another quarter. another increase. Today we learnt that Singapore private home prices are up 3.8% in the 3rd quarter of year 2022, according to URA data released on Oct 28.
This is an increase of the 3.5% quarter on quarter growth recorded in the previous quarter.
And this means that the overall private home price increase to 8.2% for the first three quarters of 2022, higher than the 5.3% growth registered for the first nine months of 2021.
Prices of non-landed properties in Core Central Region (CCR) increased by 2.3% in 3rd Quarter 2022, compared with the 1.9% increase in the previous quarter.
Prices of non-landed properties in Rest of Central Region (RCR) increased by 2.8%, compared with the 6.4% increase in the previous quarter.
Prices of non-landed properties in Outside Central Region (OCR) increased by 7.5%, compared with the 2.1% increase in the previous quarter
Private home prices up 3.8% in Q3 of 2022 : Where Does Q3 Price Growth Came From
The price growth in Q3 is largely driven by the Outside Central Region (OCR) where prices accelerated to 7.5% from just 2.1% in Q2.
This is the fastest pace of increase in OCR prices since Q3 2009. Industry Experts point to several huge OCR launches during this Q3 quarter
(1) the 372-unit Amo Residence, which launched on July 23
(2) the 158-unit Sky Eden@Bedok, which launched on Sept 7
(3) the 605-unit Lentor Modern which was launched on Sept 17
Demand for these new launches in suburban locations was strong, as homebuyers were willing to pay prices set at new benchmarks for suburban condominiums, showing clearly the upward housing aspirations of Singaporeans have the financial means.
OCR and CCR and RCR price gaps narrowed again
The price acceleration in the OCR has further reduced the gap between the OCR with the CCR and the RCR, says Ismail Gafoor, CEO of PropNex Realty.
“The uplift in OCR home values in 3Q2022 had narrowed the non-landed new sale average unit price gap between the sub-market and the CCR and RCR to 38% and 19%, respectively — down from 55% and 28% in 2Q2022.”.
Many buyers may be taking advantage of the narrowing price gaps to consider properties in the CCR and RCR. The Chinese are major buyers of expensive luxury properties in CCR.
Popular projects in Q3 2022 in OCR amd RCR included Hyll on Holland, Riviere, Leedon Green, and Perfect Ten.
Landed Properties Moderate Growth
In Q3 of 2022, Singapore landed properties saw price growth moderate to 1.6%, slower than the 2.9% q-o-q increase observed in the previous quarter.
Rental Market Sizzles
Rentals of private residential properties increased by 8.6% in 3rd Quarter 2022, compared with the 6.7% increase in the previous quarter !!
Rentals of landed properties increased by 10.9% in 3rd Quarter 2022, compared with the 3.2% increase in the previous quarter. Rentals of non-landed properties increased by 8.3%, compared with the 7.1% increase in the previous quarter. Rentals of non-landed properties in CCR increased by 7.0% in 3rd Quarter 2022, compared with the 7.7% increase in the previous quarter.
Rentals in RCR increased by 9.6%, compared with the 5.9% increase in the previous quarter. Rentals in OCR increased by 8.8%, compared with the 7.7% increase in the previous quarter.
The accelerated growth to the arrival of more foreigners to work and study in Singapore after the government eased travel and Covid restrictions, as well as tight supply.
Going forward
A further slowdown in market sales is expected as buyers become more cautious and prudent due to the new cooling measures, shocking increase in bank loan interest rates and the difficult economic outlook in the world.
However, growth in rental rates are expected to remain sustained given the low number of new completions and the decision of the government to keep importing more foreigners.
The rental market may only start to ease in 2023 when economic conditions are expected to weaken, and a higher number of units are slated for completion.
