Prices for private residential properties and Housing and Development Board (HDB) resale flats are expected to increase in the third quarter of 2021, according to flash estimates.
In Q3 2021, private residential prices are expected to increase by 0.9%, a slight improvement from the 0.8% hike registered in the previous quarter, based on flash estimates released by Urban Redevelopment Authority (URA) on Friday (1 October).
Non-landed private home prices in the Core Central Region (CCR) look set to dip 0.6%, reversing the 1.1% increase in Q2 2021, while the Rest of Central Region (RCR) may register a 2.2% increase, up from the 0.1% increase posted in the previous quarter.
The Outside Central Region (OCR), on the other hand, is expecting a 0.2% drop in prices, reversing the 1.9% increase seen in the previous quarter.
PropertyGuru Singapore Country Manager Dr Tan Tee Khoon noted that property prices are forecasted to increase for the sixth consecutive quarter in Q3 2021, despite tightened restrictions.
“Although property activity was affected by the tight restrictions on show flat visits and property viewings, it seems that property sales remain relatively healthy, suggesting that the market is gradually adapting to this new normal,” he said.
In fact, developers have continued to launch new projects, with new private home sales reaching a six-month high in July.
And while developer sales slipped month-on-month in August due to strong sales in July, it was actually 12.1% higher year-on-year based on URA caveats as of 30 September.
Over at the HDB resale market, prices are projected to rise 2.7% in Q3 2021, down from the 3.0% increase registered in Q2 2021, showed HDB flash estimates.
Tan pointed that while the growth was slower compared to the 3.0% hike registered in the last two quarters, it remains a significant increase in prices.
He attributed the increase to more buyers turning to the HDB resale market due to the longer waiting times for new Build-to-Order (BTO) flats.
“Our latest Consumer Sentiment Study also found that one in three Singaporeans are willing to pay Cash Over Valuation (COV) for their preferred property,” he said.
“Informed HDB buyers are more likely to fork out COVs as high as S$200,000 for choice flats like those newly MOP-ed, bigger flat types in attractive locations like Queenstown and Kallang. This is especially so amid a robust HDB resale market, where we are seeing an unprecedented influx of HDB MOPs to the tune of 25,000 flats.”
Moreover, the growing number of million-dollar flat transactions is also driving up prices, said Tan.
In Q3 2021, 67 such transactions were registered, with a five-room DBSS flat emerging as the most expensive transaction at $1.295 million.
Meanwhile, HDB said it will offer around 4,400 BTO flats in Choa Chu Kang, Jurong West, Hougang, Tengah and Kallang Whampoa in November.
“HDB is on track to launch about 17,000 BTO flats in 2021, which is higher than the 14,600 and 16,800 flats launched in 2019 and 2020 respectively,” it said.
In February 2022, about 2,000 to 3,000 BTO flats in Tengah, Geylang and Yishun will be offered.
“The supply is subject to review and more details will be firmed up closer to the launch date,” added HDB.
Eugenia Liew, Senior Digital Content Specialist at PropertyGuru, edited this story. To contact her about this or other stories, email email@example.com.