Singapore – Prices for private property have shot up for six consecutive quarters to an all-time high, reports PropertyGuru, a popular Singapore website used by property agents and buyers.
In its Property Market Index (SPPI) Q4 2021 report, the website noted that despite the Covid-19 pandemic, the market remains strong.
PropertyGuru report
The report says that if the Government decides to cool the market, it will act on public housing before turning its attention to the private property market.
The SPPI, which tracks asking prices for non-landed private property listings on PropertyGuru, rose by 3.88 per cent to 126.65 points. Meanwhile, the Property Supply Index (SPSI), which tracks the number of non-landed private residential listings, grew by 3.59 per cent to 144.97 points.
“Tightened Covid-19 safety measures had a limited impact on the appetite for private property, with prices rising for the sixth consecutive quarter,” noted PropertyGuru.
“The sustained growth over the past 1.5 years is a strong signal of property sellers’ unwavering confidence in the market,” it added.
Although PropertyGuru expects growth to continue, it notes that the market is showing signs of slowing down, with transaction volumes decreasing.
“The impressive performance of many newly launched projects has given many developers the confidence to raise prices by one to four per cent,” said PropertyGuru Country Manager for Singapore, Dr Tan Tee Khoon.
“This may indeed slow down sales, but they can afford to wait. Many developers have depleted and are seeking to replenish their land banks,” he added.
In its report, PropertyGuru highlighted the five best and slowest performing districts with asking price growth. Changi Airport, Changi Village showed the highest change while Newton, Novena showed the slowest change.
The report also revealed the top 10 best-selling condominiums, with Pasir Ris 8 taking first place, selling 425 units.
The report says, “Over the course of 2021, managing Covid-19 and reopening the economy have been the government’s main priorities. Depending on our progress in managing the health crisis, next year could possibly be when the Government turns its attention to the housing market.”
If the Government intervenes, it is likely to cool the Housing and Development Board (HDB) resale market first as prices there are growing at a much faster pace than in the private property market, it noted.
“As it is, the number of million-dollar HDB flats reached a record high this year,” said PropertyGuru. /TISG
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