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Singapore Property Market Report Q1 2022 – Powered by PropertyGuru DataSense

Eugenia Liew
Prices and demand for all property types soared in 2021, and property cooling measures were announced on 15 December 2021. The rental market also took off in these unprecedented times.
Keeping abreast of these changes, we have revamped our Singapore Property Market Report, looking at sales and rental data from all residential property types in Singapore, namely HDB resale flats, condos and apartments, and landed housing.
Leveraging proprietary data from listings on PropertyGuru Singapore, we have developed three statistical indices for property sale and rental prices, supply and demand. This is further supplemented by historical transaction data provided by URA and HDB, and crunched by PropertyGuru DataSense, your leading technology partner in the property market. New insights on the top performing districts by rental yield and number of transactions are also provided to give a more complete view of the property sector.
Presenting the Singapore Property Market Report Q1 2022 – powered by PropertyGuru DataSense.

Contents

  1. Get the GuruView
  2. Singapore Property Sale Market Index
    1. Sale Price Index, Supply Index and Demand Index
    2. Top Performing Districts and Projects
  3. Singapore Property Rental Market Index
    1. Rental Price Index, Supply Index and Demand Index
    2. Top Performing Districts by Rental Yield
  4. Conclusion

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Get the Guru View: Key Findings of the Singapore Property Market Report Q1 2022

Singapore Property Sale Market Index Q1 2022

Despite the surprise announcement of the December 2021 property cooling measures, the Singapore property sale market is going strong. The Singapore Property Sale Price Index saw a 5.07% quarter-on-quarter (QoQ) increase.
In particular, the HDB resale market saw bullish growth, with the median per square foot (PSF) sale prices surpassing pre-pandemic times and rising for 14 straight quarters. This aligns with the HDB Resale Price Index by HDB, which rose by 3.4% QoQ – the largest growth since Q3 2011.
The appetite for HDB resale flats is driven by two groups: HDB upgraders and buyers affected by the Build-to-Order (BTO) flat construction delays. In 2021 and 2022, over 25,000 and 31,000 HDB BTO flats will fulfil their 5-year Minimum Occupation Period (MOP), respectively. As such, we expect another robust year for the HDB resale market, with a high number of million-dollar HDB flat transactions.
Private property asking prices did not rise as quickly or as much as HDB flats, possibly due to the higher quantum, leaving less room for increase. Still, the growth is significant. Non-landed and landed private property saw asking prices increasing for seven and eight straight quarters, respectively.
Meanwhile, the Singapore Property Sale Supply Index is at a 3-year low, recording an 11.47% QoQ decrease. Though a QoQ dip was observed in the Singapore Property Sale Demand Index, this is likely due to the fewer number of listings online. Additionally, the slowdown may have been attributed to December being a traditionally lull period for the property market due to the end-of-year festivities.

Top Performing Districts and Projects

Based on the number of units transacted, Canninghill Piers (District 6), Normanton Park (District 5), and Dairy Farm Residences (District 23) were the top three best-selling new condo launches in Q4 2021.
Q4 2021 was a good quarter for the prime districts. Prime districts took three of the top five spots for districts that saw the greatest QoQ growth in median PSF transaction prices.
Some possible new launches for Q1 2022 include:
  • The Arden (District 23)
  • Royal Hallmark (District 15)
  • Liv @ MB (District 15)
  • North Gaia EC (District 27)
  • Evelyn Newton (District 11)
  • Gems Ville Lorong 13 (District 14)
  • Atlassia (District 15)
  • Sophia Regency (District 14)
  • Baywind Residences (District 15)
  • Pollen Collection (District 28)
Most HDB resale flat buyers seem to be looking for more wallet-friendly options, seeking homes in more affordable neighbourhoods. Hougang, Punggol, and Sengkang see much buyers’ interest thanks to the large batch of HDB flats that recently fulfilled their MOP.

Singapore Property Rental Market Index Q1 2022

The Rental Price and Demand Indices show healthy and steady QoQ growth. Both are at a 3-year high. Meanwhile, the Rental Supply Index is at a 3-year low.
Previously, the mass exodus of expatriate workers and the introduction of the Circuit Breaker in Q2 2020 caused a sudden drop in the Singapore Rental Demand Index. Worry for rental markets quickly dissipated as Safety Management Measures eased, and a huge spike in demand was soon registered in the following quarters.
There has been a surge in price and demand for HDB rental market that is unlikely to abate until construction delays ease. The Rental Price Index for HDB flats for Q4 2021 is at 174.34 points, compared to the overall Rental Price Index of 137.40 points.
This could, in part, be attributed to a large group of HDB new flat buyers who are affected by construction delays, and are choosing to rent while waiting for their homes to be completed. Additionally, there is an increasing trend of single millennials and unmarried couples moving out of their family homes due to insufficient space and privacy.
A spillover into the private non-landed property rental market also seems likely. Currently, the median listed rental PSF prices for HDB flats in Q4 2021 is $4.33, compared to $4.98 for non-landed private property. The narrowing in price gap may have pushed some who might have rented HDB flats towards non-landed private property instead.

Top Performing Districts by Rental Yield

Across all private property types, the OCR and CCR dominate the list for the highest rental yield percentages.
Mature HDB towns on the city fringe see the highest rental yield. Jurong West is the only non-mature estate taking a spot on this list, possibly due to the neighbourhood’s proximity to various international schools such as Dulwich College (Singapore), One World International School, Canadian International School Singapore, Japanese School Singapore, and Yuvabharathi International School.

Conclusion

2021 was an excellent year for the property market. The stage is set for Q1 2022 to be a robust quarter, although perhaps not at the same blistering pace.
The full effects of the recently announced cooling measures are yet to be felt, but they are expected only slightly to slow down growth.

For more insights and analysis, read the full PropertyGuru Singapore Property Market Report Q1 2022:

Or, read past Property Market Index Reports: