Private Residential Property Q1 2022

Private home prices and HDB resale prices continued to rise, albeit at a slower pace in the first quarter of 2022, following the introduction of new property cooling measures in December 2021 that were aimed at stabilising the market and reining in buying demand from foreigners and investors with multiple properties. The muted price growth during the quarter came amid a pullback in sales volumes as uncertainties loom.
For the first quarter of 2022, developers have sold fewer than 2,000 new homes while the private resale market transacted about 3,100 homes.

Private Residential Market Outlook
The relaxation of Covid-19 safe management measures and easing of travel restrictions will help to boost the property market in the coming quarters, facilitating sales in show
flats and potentially seeing more foreign buyers returning. Notwithstanding that, HDB
upgraders and locals will continue to underpin home sales.
In Q2 2022, several new projects are slated to be launched for sale – including North Gaia EC and Piccadilly Grand – which will help to drive sales and sustain prices. With rising inflation and higher construction cost, prices of new launches are expected to stay firm.

HDB Resale Q1 2022
Overview
HDB resale values increasd at a slower pace in Q1 2022 amid muted resale activities, due to the outbreak in community COVID-19 cases, the Chinese New Year festive period, and possibly a declining supply of resale flats available for sale.

HDB Resale Market Outlook 
PropNex projects HDB resale prices to continue growing at a moderate pace owing to the new cooling measures and the increase in Build-to-Order (BTO) flat supply in 2022 and 2023, that may rein in resale demand. Furthermore, buyers may also
increasingly balk at high prices amid rising interest rates and inflationary pressure, while uncertainties could weigh on market sentiment.

In 2022, PropNex expects resale volumes to hit more than 27,000 transactions, supported by the healthy underlying demand and the bumper stock of flats (over 31,000) that are due to exit the 5-year Minimum Occupation Period in 2022.