The Singapore property market is showing continued resilience in the face of a deepening recession: In the third quarter of 2020, official figures by the Ministry of Trade and Industry show that Singapore’s GDP contracted by 7% year-on-year.
Yet, in the property sector, there was a burst of activity, with the PropertyGuru Singapore Property Market Index Q4 2020 (PMI Q4 2020) recording a 0.41% increase from 111.9 to 112.4 points.
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The PropertyGuru Singapore Property Price Index (SPPI), which tracks asking prices in the non-landed private residential market, saw a slight QoQ gain of 0.41% to 112.4 points. This aligns with URA’s quarterly report, which showed a slight 0.1% gain in transaction prices.
As observed, prices have remained relatively stable. There was also a strong demand for affordable new launch properties. There were 15.6% more new launches than resale condos sold (+5% QoQ), and almost 40% of the properties transacted were in the $1 million to $1.5 million price range.
The PropertyGuru Singapore Property Supply Index (SPSI), which tracks the number of non-landed private residential listings posted on PropertyGuru, dipped by 32.7%, from 282.4 to 109.1 points this quarter.
Under more usual circumstances, such a dramatic fall in supply may have caused alarm. However, given that this decrease comes after a 46.39% spike in the previous quarter, it bodes well for the market that the inventory fell.
“The observed trend is encouraging, suggesting a healthy take-up rate in the market,” said Dr. Tan Tee Khoon, Country Manager, PropertyGuru Singapore.
Typically, districts see an uplift in prices when multiple new projects are launched in the area, but this is not the case here.
With the launch of Forett at Bukit Timah in August, District 21 (Clementi Park, Upper Bukit Timah) had a 3.09% QoQ increase in median asking prices.
Likewise, District 9 (Orchard, River Valley) had several new projects that are in demand. Kopar at Newton and The Avenir are recent launches, while 8 Saint Thomas is completed and Martin Modern is approaching completion this year.
In terms of new launch projects, all five districts listed here – 2, 12, 16, 22 and 25 – were relatively quiet over the past three months. For most of the districts in this list, the recorded QoQ asking price decline is quite minor at under 3%.
This quarter, The top three best-selling projects were Penrose, Treasure at Tampines, and Forett at Bukit Timah.
The bestselling private non-landed residential projects were those which were competitively priced: six out of 10 are in the affordable OCR, with the remaining four located in the RCR. These regions are where buyers can find reasonably spacious 2- to 3-bedroom units at the $1 million to $1.5 million price range. This price point makes up almost 40% of the total transactions.
As with the previous quarter, there was a clear preference for convenience and accessibility. Nine projects are within walking distance to an existing MRT station. The remaining one, The Garden Residences, will be near the upcoming Serangoon North MRT station on the Cross Island Line (CRL).
While most of the activity this quarter was in the northeast areas, the next quarter is expected to see many new launches in the central, western and northwestern parts of Singapore.
District 21 – Clementi Park, Upper Bukit Timah
District 5 – Buona Vista, West Coast, Clementi New Town
- One North Eden
- One Normanton Park
Around the City and CBD
- The Landmark (D3)
- Midtown Modern (D7)
- Klimt Cairnhill (D9)
- Perfect Ten (D10)
The quarter closed with the Controller of Housing (COH) clamping down on the practice of reissuing purchase options to buyers (28 September). As we enter the last quarter of 2020, we expect to observe slight softening in the market due to this new regulation.
Generally, industry members and analysts are optimistic that recovery is underway. There is confidence in Singapore’s sound fundamentals, and the Government’s efforts towards stimulating the economy and creating jobs so businesses can continue.
For more insights and analysis, read the full PropertyGuru Singapore Property Market Index Q4 2020 report:
Or, read past Property Market Index Reports from 2020:
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