Private Residential Property Q1 2021
Overview
A bounce back in confidence on gradual
economic recovery and the vaccine rollout, the
availability of ample liquidity, as well as healthy
housing demand have helped to spur home
values in Q1 2021.
In addition, market sentiment has improved as
reflected by the strong take-up of new project
launches that are attractively-priced and welllocated. The low interest rate environment also
strengthened buying power and supported
home financing.
As economic recovery continues to gain
traction, private residential prices continued to
rise unabated in Q1 2021, supported by strong
take-up of new launches. Barring unforeseen
shocks and new cooling measures, the private
housing market is expected to remain resilient
in 2021.

Market Outlook
Home sales momentum and pricing
should continue to find support from the rising
optimism, on the back of the progressive vaccine
rollout and the brighter economic outlook for
Singapore.

PropNex expects private home values to
climb by 6% to 7%, largely backed by new
launches – many of which are in the CCR and
RCR. In addition, the healthy demand for homes
is set against a diminishing supply of unsold
stock at 21,602 units (ex. ECs) at the end of Q1
2021 – a scenario that will help to sustain prices.
Although prices on a PSF basis have
either stayed firm or increased slightly for some
new launches, the average transacted
quantum for new private homes in Q1 2021 was
in the region of around $1.6 million – within the
pricing sweet spot that is still palatable for
many buyers.
Local end-user and investor demand
should remain healthy, while foreign investors
are likely to rate Singapore highly as an
attractive investment destination, given its solid
fundamentals. Barring any new cooling
measures, PropNex expects over 10,000 new
private homes and more than 12,000 resale
units to be transacted in 2021.

HDB Resale Q1 2021
Overview
HDB resale prices continued to climb in Q1 2021.
The more positive economic outlook, delays in the
completion of new Build-to-Order flats, and
generous housing grants for first-time buyers
buying resale flats are all factors that have
contributed to the robust demand in the HDB resale
market, which in turn has helped to push prices
higher.
An estimated 25,530 HDB flats will exit their 5-year
Minimum Occupation Period (MOP) in 2021, making
them eligible to be resold. This potential supply of
resale units will help to stimulate demand,
particularly for flats in prime locations.

Market Outlook
PropNex expects HDB resale prices to grow by 6% to
7% and transaction volume will likely hit 26,000 units.
As prices recover, some HDB flat owners may see
this as an opportune time to sell their flat and trade
up to a private home, thereby boosting the private
residential market.