Excerpts from Mind Mind: Singapore Property Outlook 2021/2022
Taken from Channel News Asia: Money Mind
Will Singapore’s residential property market continue to defy gravity as pandemic transitions to endemic?
Property Market Volume
Property Volume has been a uptrend since last year 2020 with price rising 6 straight quarter.
Demand comes mainly from HDB upgraders from the rally of HDB resale prices.
Residential price index has been on an uptrend while office price index is on a down trend and the gap is becoming wider.
Most of the owners are now looking to buy first before selling. Main reason is because buying is harder.
HDB resale market is also bullish as many are first timers due to requirement for more space and also shorter waiting time as compared to BTO.
Million Dollar HDB Homes
Total volume of Million Dollar HDB homes have already exceeded the total of last year. In the first 10 months, there is a total of 194 million dollar HDB transactions, up 228.8% over the same period last year.
Mainly are landed property owner who are downsizing or to cash out yet want to space or location.
Demand of Private Property
There is a higher demand for suburban (Outside Central Region OCR) private properties as compared to properties nearer the city.
This is mainly due to the Work-from-Home culture where people want a larger home with the same price point as compared to the other region.
Core Central Region
The Core Central Region (CCR) has remain attractive and is expected to pickup when foreign buyers return.
CCR has the lowest price growth of only 5.7% as compared to the other 2 region 11.5% and 8.3%. This is mainly due to the weak foreign purchase.
A revival is expected to be seen in the coming years when foreign buyers come back into the market.
Main Trend and Demand
The main surge is after the circuit break in Apr 2020.
- People are looking for 3 things:
better connectivity - better amenities such as schools
- larger units
As for HDB, 4 room flats remain as the most popular type.
Luxury Tier
Demand for luxury homes have been strong.
There are 3 tiers of luxury.
- Entry Level Luxury: $2-4M
- Deluxe Luxury: $5-8M
- Ultra Luxury: >$10M
High Net Worth and Ultra Net worth individuals are less affected by the economy and these luxury property buyers are not speculators and are here to invest their money over a long period.
The main group of buyers are locals, mainly entrepreneurs in emerging industries such as biomedical and fin-tech. The segment has seen a 4.5% growth and 72% of the buyers are locals.
To read more about my in-depth analysis and my future prediction written previously, go to the link below:
2021 Property Market – Current Scene, Where & What to Buy
Why 2021 is the Best Time to Buy a Property
Private Home Prices Expect to Rise Further on Higher Supply and Demand