According to Christine Sun, senior vice president of research and analytics at OrangeTee & Tie, new home sales (excluding ECs) in the second quarter increased by 27.1% quarter-over-quarter to 2,258 units.
New homes, which comprised a greater proportion of total sales in the second quarter, are typically sold at a higher price than resale homes. Sun continues by stating that the proportion of transactions exceeding $2 million increased from 35.3% of all transactions in the first quarter to 38.8% of all transactions in the second quarter, causing prices to rise even further.
As Singapore returns to normalcy after the pandemic years, “the sheer weight of demand simply outweighs the supply backlog,” according to Leonard Tay, head of research at Knight Frank.
According to URA caveats, private non-landed residential prices in the core central region (CCR) rose 1.6% annually in the second quarter, following a 0.1% annual decline in the first quarter. Tay adds that the increase in price, which is commonly associated with luxury homes, coincides with the April relaxation of air travel restrictions.
This includes the 22 units desired by an Indonesian family at Draycott Eight and the 20 units purchased for $85 million by a Chinese national at CanningHill Piers.
Following a 2.7% decline in the first quarter, private non-landed residential prices in the remainder of the central region (RCR) increased by 6% quarter-over-quarter in the second quarter.
According to Tay, the launch of Piccadilly Grand and LIV@MB in May revitalized the housing market and captivated prospective buyers.
Private non-landed residential property prices in the outside central region (OCR) rose 1.7% annually during the second quarter, compared to 2.2% annually during the first quarter. This segment represents suburban homes for the mass market and is driven primarily by HDB upgraders and new families.
Landed property prices increased by 2.9% quarter-over-quarter in the second quarter, down from 4.2% the previous quarter. This is due to the limited supply of Good Class Bungalows (GCBs), according to him.
As a result of higher interest rates and reduced mortgage eligibility, private property prices are anticipated to decline for the remainder of the year. In spite of rising interest rates, he believes that upcoming mass-market launches such as Sceneca Residences, Lentor Modern, and AMO residences will complement home upgrades and contribute to continued price growth. Due to strong housing demand, Sun of OrangeTee & Tie anticipates a 6% to 8% increase in overall property prices. In contrast, Tay anticipates a 5% to 7% increase this year.
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