Singapore’s residential market segments show “disparate price performances”: JLL

The landed segment outperformed others with a 2.5% price increase.

Private home prices in Singapore rose by 0.9% in 3Q21 according to URA’s flash estimates, which is a marginal increase from the 0.8% registered in 2Q21. Ong Teck Hui, Senior Director of Research & Consultancy at JLL, said in general, it shows that prices remain on an uptrend supported by healthy demand from buyers. However, analysis of the different market segments shows disparate performances in prices.

Here’s more from JLL:

The landed segment was the top performer in 3Q21, recording a 2.5% price increase following a slight dip of -0.3% in 2Q21. Demand for landed homes has been firm with many buyers trying to upgrade into landed properties from condominiums or apartments. 

Prices of non-landed homes in Core Central Region (CCR) eased by -0.6% in 3Q21 after rising 1.1% in the previous quarter. New sales of non-landed homes in CCR in 3Q21 is about half that of 2Q21, with only Klimt Cairnhill launched in 3Q21 compared to 2Q21, when Irwell Hill Residences, Peak Residence, Grange 1866, One Bernam and Park Nova, were launched. 

In the Rest of Central Region (RCR), non-landed home prices rose 2.2% in 3Q21, a pick-up from the 0.1% increase in 2Q21. New sales of non-landed homes accounted for nearly half of total non-landed transactions during 3Q21. New sales were led by projects such as Normanton Park (281 units sold), Avenue South Residences (94 units sold), The Antares (70 units sold), Amber Park (61 units sold) and Forett at Bukit Timah (53 units sold). 

After rising by 1.9% in 2Q21, prices of non-landed homes in Outside Central Region (OCR) eased marginally by -0.2% in 3Q21. This was despite two new fresh launches, ie. Pasir Ris 8 (425 units sold) and The Watergardens at Canberra (281 units sold), which together accounted for 37% of new non-landed sales in OCR during 3Q21. New non-landed sales in OCR were led by these two projects and numerous others including Midwood (165 units sold), Parc Clematis (134 units sold), Treasure at Tampines (132 units sold) and The Florence Residences (130 units sold). Demand for new non-landed homes in OCR was robust in 3Q21, with sales nearly doubling from 2Q21.

Cooling measures unlikely in the short term

In the first three quarters of the 2021, the overall price index has risen 5.1% and could end the year with an increase of 6% to 7%. This could be in line with economic fundamentals, as MTI’s latest GDP growth forecast is 6% to 7%. If private home prices continue trending up around the current pace of increase, cooling measures are unlikely to be imposed.