Excerpts from Mind Mind: Singapore Property Outlook 2021/2022

Taken from Channel News Asia: Money Mind

Money Mind 2021/2022 – S1E31: Singapore Property Outlook

Will Singapore’s residential property market continue to defy gravity as pandemic transitions to endemic?

Property Market Volume

Price Growth comparing the 3 different regions of Singapore
Growth of Properties Comparing the 3 zones of Singapore

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

Demand Breakdown by Region in Singapore
Condo Volume Breakdown by Region

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

Singapore Pricing Index by location
Property Price Index by 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. 

  1. People are looking for 3 things:
    better connectivity
  2. better amenities such as schools
  3. 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.

  1. Entry Level Luxury: $2-4M
  2. Deluxe Luxury: $5-8M
  3. 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.

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