2022-10-13-莱坊-Singapore_Residential_Market_Update_Q3_2022_2页_710kb

Overview

Despite cooling measures and rising interest rates, prices for non-landed private residential properties in Singapore rose by 4.1% q-o-q in Q3 2022, with a cumulative increase of 7.5% year-to-date, driven by new project launches setting benchmarks in peripheral areas. However, transaction volumes declined, with a 18.7% q-o-q drop in total sales (4,963 units) and reduced activity in secondary markets. Sales volumes also fell in key regions, such as the Core Central Region (CCR), primarily due to fewer new launches and limited resale units.

Key Data

• Price Index for Non-Landed Properties: Rose 4.1% q-o-q, reaching a new record high in the Outside Central Region (OCR), which increased 7.0% q-o-q due to strong demand from homebuyers.
• Transaction Volumes:
  • Total non-landed sales decreased by 18.7% q-o-q.
  • Primary market sales fell 7.9% q-o-q (2,143 units), while secondary market transactions dropped 25.4% q-o-q (2,820 sales).

Rental Market

Residential rental rates continued to rise, with a 24.5% increase in rental contracts compared to previous months, exacerbated by cooling measures driving more rental demand, particularly from downgraders and returning expatriates.

Market Outlook

Prices are expected to end 2022 with about 10% growth despite cooling measures and recession fears. However, sustained high inflation, rising rates, and inconsistent policies may dampen sentiment, while new home completions aim to ease rental pressures by 2023.

Regional Highlights

• OCR: Strongest performance with 9.8% q-o-q sales growth driven by high take-up rates of major launches.
• CCR: Prices rose 2.3% q-o-q, but sales volumes contracted due to fewer new projects and inventory shortages, despite increased foreign buyer involvement.