2022-04-11-莱坊-Singapore_Residential_Market_Update_Q1_2022_2页_846kb

Market Snapshot Q1 2022

Overall Market:

• Market activity paused following cooling measures and lingering COVID-19 uncertainties, leading to a decline in non-landed residential transactions.

Cooling Measures Impact:

• Cooling measures dampened price increases and suppressed buyers/sellers' reactions, stalling transactions.
• Prices in the Core Central Region (CCR) experienced a 0.5% quarter-on-quarter drop. Core Central Region (CCR) prices slowed further due to targeted cooling on foreign buyers.
• The OCR market was the only segment to maintain growth, rising 1.9% quarter-on-quarter.

Supply/Demand & Inventory:

• Increased inventory delays (due to supply chain issues), but higher unsold stock dampened rental demand despite persistently strong demand from upgraders and investors.
• Sellers are facing longer construction timelines and limited new launches, compelling some buyers to seek resale units.
• Dearth of salable inventory, particularly for larger units, restricts transaction activity.

Sales & Prices - Detail:

• Primary Sales: Dipped significantly, 44.4% q-o-q.
• New Launches: Reluctant relative to previous measures, only two smaller projects (48 units). Some projects still saw price dips specifically in the CCR.
• Resales: Volumes fell sharply by 40.7% q-o-q, contributing to overall market decline.

Rental Market:

• Rental volume dropped by 6.2% y-o-y (Jan-Feb 2022), but demand for replacement homes remains high.
• Landlords pass on increased maintenance and inflation to tenants, likely leading to rising rents, which may offset higher interest payments.

Market Outlook (2022):

• Transaction volumes expected to pick up from Q2 onwards as the VTF gains momentum and new launches occur.
• Forecasted new-sale volumes for 2022: 8,000 to 9,000 units (~28k transactions).
• Price growth expected for 2022: Subdued 1-3% (prices anticipated to rise).
• Rent growth expected for 2022: 7-9%.