Singapore private home prices to rise by 1-3% in 2022
New sales volume is expected to hit 9,000 units.
Singapore’s private residential market had a good run for the whole of 2021 but the new cooling measures introduced later in the year clouded analysts’ outlook.
Knight Frank says volumes and prices are expected to show tentativeness in Q1 and perhaps Q2 2022 before strong underlying fundamentals kick in to re-establish homebuying demand.
Here’s more from Knight Frank:
A lack of inventory will continue to underpin demand with 17,140 unsold units in the market as of Q3 2021, down from about 24,300 at the end of 2020. Owner occupiers, looking to upgrade and right-size, are generally unaffected by the ABSD revisions and will comprise the majority of buyers in 2022.
Stability can command a premium in today’s world. While the upward revisions in ABSD rates will be inhibitive on foreign buyers and residential investors for prime CCR properties, Singapore’s safe-haven status and current absence of a wealth tax will nonetheless continue to be compelling.
Overall private residential prices are projected to increase around 1%- 3% in 2022 considering the cooling measures and interest rate hikes. New sale volume could reach around 8,000 to 9,000 units with lesser launches in the pipeline.