According to an analyst, the relaxation of 19 safe management standards led to a large increase in the number of home and apartment viewings.
In the second quarter, private property prices in Singapore increased by 3.5%, five times the rate of the previous quarter.
In the second quarter of this year, private property prices in Singapore grew by 3.5%, more than five times the 0.7% increase in the first quarter.
According to real estate figures provided by the Urban Redevelopment Authority (URA) on Friday, the private residential property price index rose to 180.9 in the second quarter, up from 174.8 in the previous three months (Jul 22).
In the second quarter, prices for non-landed properties climbed by 3.6%, following a 0.3% fall in the first quarter.
The value of these properties climbed by 1.9% in the core central region and by 6.4% in the remaining center area. In the second quarter, non-landed property prices outside of the core region climbed by 2.1%.
In the second quarter of this year, detached home prices climbed by 2.9%, compared to 4.2% in the first quarter of 2022.
In the second quarter, resale deals represented around 62.2% of all sale transactions. Last quarter there were 4,236 resale transactions, up from 3,377 the prior quarter.
Christine Sun, senior vice president of research and analytics at OrangeTee & Tie, noted that the bulk of COVID-19 safe management procedures were loosened, hence boosting consumer sentiment. The majority of COVID-19 provisions in Singapore, including group size limitations, were eased on April 26.
According to Ms. Sun, the number of home and apartment viewings has surged tremendously, “substantially bolstering the sector.”
The number of non-landed residences purchased by foreigners and non-permanent residents rose from 144 in the first quarter to 292 in the second.
First-quarter private property prices in Singapore increased by 0.7% annually after the adoption of cooling measures.
The prices of HDB resale flats and private properties climbed more fast in the second quarter, according to preliminary estimates.
In the second quarter, private home rentals climbed by 6.7%, up from 4.2% in the first quarter.
In the second quarter, non-landed property rentals in the core central region grew 7.7 percent, while those in the remainder of the central region rose 5.9 percent.
Outside of the central region, rentals of non-landed properties climbed by 7.7%.
The increase in landed property rentals slowed to 3.2% in the second quarter, compared to 5.3% in the first.
Ms. Sun continued by stating that a growing number of renters are signing at least two-year leases in order to lock in the current rental cost, as they anticipate greater price rises in the following months.
According to Mr. Lee Sze Teck, senior director of research at Huttons Asia, landlords are increasing rents to offset the increase in interest rates.
SUPPLY Developers sold 1,956 unfinished private residential units (excluding ECs) in the second quarter, up from 613 units in the first quarter.
In the second quarter, private dwellings were sold at a rate of 2,397, up from 1,825 in the first quarter.
In 2022 and 2023, URA anticipates the completion of roughly 30,700 units, including ECs. This is roughly three times as many units as will be finished in 2020 and 2021.
This will assist in meeting housing needs in the near future. After 2023, a total of 27,000 units having planning approval as of the second quarter of 2022 will be constructed, according to the authorities.
According to URA, roughly 25,500 units may be available for purchase later this year or at the beginning of the following year.
The statement continued, “The Government has significantly increased the supply of private housing on the confirmed list for the GLS (Government Land Sales) programmes in 2022 to meet the strong housing demand, and will continue to closely monitor economic and property market conditions and calibrate housing supply to maintain a stable and sustainable property market.”
OUTLOOK
Ms. Sun predicts that in the second half of the year, macroeconomic variables such as global inflation, interest rate hikes, supply chain disruptions, and Chinese lockdowns will have a stronger impact on housing demand and property prices.
As a result of the Federal Reserve’s decision to raise interest rates to combat inflation in the United States, mortgage rates in Singapore are increasing.
According to Mr. Lee, third-quarter debuts are expected to stir excitement. Among them are new homes in Ang Mo Kio, Kovan, and Lentor.
Additionally, he noted that demand from HDB upgraders will continue to be robust in the third quarter, as new projects will drive price increases.
This year, he anticipates private property values to increase by up to 8%.
Moreover, investors seeking conventional safe havens for capital preservation may continue to do so in our market, since our real estate investment market is considered as one of the safest and most stable in the world.
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