Private Residential Property Q4 2021

Overview
Private home prices hit new highs in Q4 2021
and grew by 10.6% for the whole of 2021,
according to the flash estimate. The growth in
prices comes on the back of strong demand for
private homes, boosted by the economic
recovery, low interest rate environment and
excess liquidity in the market. For the whole of
2021, developers have sold 13,118 new homes
while the private resale market transacted
more than 20,000 homes, surpassing resale
volumes over the last 10 years.
With new cooling measures in place from 16
December 2021 and impending interest rate
hikes, private home prices are expected to rise
at a more measured pace in 2022.

Private Residential Market

Outlook
• PropNex expects the growth of private home
prices to ease to 3% to 5% in 2022 as new
cooling measures weigh on investment
demand and ensure prices move in a more
sustainable manner. Barring the CCR which is
more investor-reliant, prices in other
segments such as the RCR and OCR should
remain fairly resilient owing to genuine
demand from upgraders and locals, and the
limited stock of unsold mass market homes.
• PropNex projects between 9,000 and 10,000
new private homes and between 15,000 and
16,000 resale units to be sold in the full-year
2022.

HDB Resale Q4 2021
Overview
HDB resale values continued to climb in Q4 2021,
posting a double-digit growth for the whole
year. The new cooling measures and a rising
interest rate environment could moderate HDB
resale price growth in 2022.

HDB Resale Market Outlook
PropNex projects the pace of HDB resale price
growth to slow to between 6% and 8% in 2022, as
the new cooling measures along with the ramping
up of Build-to-Order (BTO) flat supply in 2022 and
2023 may temper the buoyant buying demand.
In 2022, PropNex expects transactions in the HDB
resale market to hit 30,000 flats, supported by the
healthy underlying demand for resale flats and the
bumper stock of flats (over 31,000) that are due to
exit the 5-year Minimum Occupation Period in
2022.