In The News

Singapore Residential Property Price Index

Private home prices in Singapore increased by 3.5 percent quarter-on-quarter in the three months to June of 2022, compared with the preliminary reading of a 3.2 percent growth and after a final a 0.7 percent rise in the previous quarter. The latest figure marked the ninth straight quarter of increases in private home prices, largely linked to a sharp bounce in cost of non-landed property (3.6 percent vs -0.3 percent in Q1). Meantime, cost of landed property moderated (2.9 percent vs 4.2 percent). Going forward, the upward momentum may be threatened by worries over rising cost of living and higher interest rates. In 2021, private home prices jumped 10.6 percent, way faster than a 2.2 percent rise a year earlier. 
source: Urban Redevelopment Authority
Singapore property players turn cautious as economic outlook darkens

PROPERTY players are more cautious about market outlook in the next 6 months to a year ahead in anticipation of various global economic uncertainties, according to a survey by the National University of Singapore’s Institute of Real Estate and Urban Studies (IREUS).

Nearly 97 per cent of its respondents flagged rising inflation or interest rates as the top potential risk factor which may adversely impact market sentiment in the next half year, according to the Real Estate Sentiment Index (RESI) survey. About 8 in 10 respondents also indicated “a decline in the global economy” and “tightening of financing and liquidity in the debt market” as potential risks.
Worries over rising costs of construction softened from 94.9 per cent in Q1 to 80 per cent in Q2, but it still remains in the top 4 risks. Meanwhile, there was growing concern over “the real estate bubble or excessive speculative activities” and “job losses or decline in the domestic economy”, each getting about 16.7 per cent and 36.7 per cent votes respectively.

An unnamed respondent said: “Developers will want to launch quickly while sentiments are positive and before interest rates run up further. With high land prices and higher construction costs, pricing for new projects are expected to be moderately higher in this resilient market. But developers have to price them attractively since interest rates and inflation have risen and that may impact buyers’ affordability.”

Looking forward, more than half - 64 per cent - of the survey respondents expect unit prices of new launches in the next 6 months to be moderately or substantially higher. About 31 per cent expected new launch prices to maintain at the same price level, while only 6.3 per cent expected prices to be substantially lower.

source: The Business Times , JUL 20, 2022

Measures to Cool the Property Market

source: Ministry of National Development (MND) , Dec 15, 2021