Overview
Private home prices continued to rise in Q2 2022,
at a faster pace compared to the first quarter,
according to flash estimates released by the
Urban Redevelopment Authority (URA). This was
despite the many uncertainties in the market
which surfaced during the quarter, ranging from
rising inflation, stock market turmoil and
monetary tightening as central banks around the
world raise interest rates to temper soaring
inflation.

Prices
• URA’s flash estimates showed that overall
private home prices rose for the ninth straight
quarter in Q2 2022, growing at a faster clip of
3.2% QOQ – following a 0.7% growth in the
previous quarter.
• The price increase in Q2 2022 was led by the
non-landed private home segment, where
values rose by 3.3% in Q2 2022 – sharply
reversing the 0.3% decline in Q1 2022.

• Prices of non-landed homes in the Core Central
Region (CCR) grew by a modest 1.6% QOQ in Q2
2022. This comes despite the ample stock of
unsold new units in this sub-market and the
December 2021 cooling measures – aimed at
reining in investment demand – which
managed to quell price growth in the Q1 2022.

• In the Rest of Central Region (RCR), home
values rebounded by 6% QOQ in Q2 2022,
reversing the fall of 2.7% in Q1 2022. New
projects Piccadilly Grand and Liv @ MB –
which were launched in May 2022 – helped to
prop up prices in the RCR sub-market, with
robust sales at average prices of $2,183 psf
and $2,409 psf respectively.

Prices of non-landed homes in the Outside
Central Region (OCR) rose by 1.7% QOQ in Q2
2022, slowing from the 2.2% QOQ growth in
Q1. The dearth of fresh launches and
dwindling unsold stock in the region have
exerted some upward pressure on OCR
home prices.

• Landed home values rose by 2.9% QOQ in
Q2 2022, following the 4.2% increase in the
previous quarter. The slower pace of
growth came amid more sluggish landed
home sales during the quarter as rising
interest rates, volatility in stock markets,
and concerns over a potential recession
likely cooled buying demand.

Transactions
• Based on Realis caveat data, developers
sold 2,504 new private homes (ex. Executive
Condos) during the quarter – representing
a 37% increase from 1,825 units shifted in Q1
2022.
• Projects in the RCR dominated new home
sales in Q2 2022, accounting for 54.1% of
new homes sold in the quarter. Of note, the
top 4 selling projects during the quarter
were from the RCR (see Table 1). It was
followed by CCR at 23.3% and OCR at 22.6%
of the transactions. The top-selling project
in the quarter was Piccadily Grand in
Northumberland Road which sold 325 units.
• PropNex expects healthy buying interest
for upcoming launches in Q3 2022 –
including AMO Residence, Lentor Modern,
and Sceneca Residence – which will play a
part in keeping home values firm in the
subsequent quarters.
• Meanwhile, 3,829 private homes were sold
on the resale market in Q2 2022 – growing
slightly after a muted first quarter, where
3,377 resale units were sold.
• Sub-sales remained relatively low at 138
units, taking total private homes
transactions to 6,471 units (including new
sale and resale) in Q2 2022

Private Residential Market Outlook
PropNex remains cautiously optimistic about the
private residential market this year with several major
new launches to come. Singapore remains an attractive
and safe investment destination for investors and
foreigners, and economic conditions also remained
relatively healthy.
However, downside risks persist – mainly the higher
interest rates. As home loan rates climb, the higher
financing cost may affect some buyers, particularly
against a backdrop of rising cost of living. Genuine
homebuyers will continue to transact, but the rising
home loan rates may test the affordability threshold,
especially in the mass market segment.
With interest rates expected to rise further, there is a
possibility of a review of the medium-term
“stress-test” interest rate of 3.5% that is currently
applied to home loan applications when calculating
the total debt servicing ratio (TDSR).
For 2022, PropNex projects that private home prices
could rise by 5% to 6% – slowing from the 10.6% growth
in 2021. Meanwhile, new home sales (ex. ECs) could
range from 8,000 to 9,000 units and resale volume
may cross 15,000 units.

Private Home Leasing
• In Q2 2022, a landlord’s market continued to
take hold, amid robust leasing demand from
foreigners and locals. This pool of ready tenant
demand has seen landlords staying firm on
asking rents, with little room for negotiation.
• Owing to the limited stock of homes
available for rent, transaction activity
seemed to have thinned. Close to 14,000
rental contracts amounting to $59.9 million
were signed in April and May.
• Rents and demand are expected to stay
elevated in 2022, supported by a return of
foreign employment, tight rental stock, and
tenants who are waiting for new homes to
be completed.

HDB Resale Q2 2022
Overview
HDB resale price growth quickened in Q2 2022
despite the slightly lower resale volume. A
combination of factors likely crimped sales,
including the limited resale flat stock, a
mismatch in price expectations between buyers
and sellers creeping in, as well as demand
having been met to some extent following the
robust sales last year.
Transactions and Prices
• The flash estimate released by the Housing
and Development Board showed that resale
prices rose by 2.6% QOQ in Q2 2022, with an
index reading of 163.7 in Q2 2022.
• Based on transaction data, 6,568 HDB flats
were resold in Q2 2022 – down by about 5.3%
from 6,934 units sold in Q1 2022.
• The HDB’s Build-to-Order (BTO) exercise in
May could also have siphoned off some
demand from the resale market. May’s BTO
exercise featured several projects in
attractive locations such as Jurong West, Toa
Payoh, Bukit Merah and Queenstown – the
latter two being under the Prime Location
Public Housing model

HDB Resale Market Outlook
In 2022, PropNex expects the HDB resale market to
continue to perform well, though prices will likely
climb at a slower pace of 7% to 9%, as opposed to the
12.7% increase in 2021. Some of the demand drivers of
resale flats will include the preference for more
spacious homes, desire for a move-in ready flat to
avoid the delays of new builds, and generally still
affordable resale prices, compared to private
homes.
PropNex projects resale volumes for 2022 to hit more
than 27,000 transactions, supported by the healthy
underlying home-occupier demand.