25th October to 31st October 2022
Private home prices in Singapore increased by 3.8% in the third quarter of 2022, up from the 3.5% hike registered in the previous quarter. Meanwhile, prices of Housing and Development Board (HDB) resale flats rose 2.6% in the third quarter of 2022, moderating from the 2.8% increase in the previous quarter.
1) Private home prices and rents rise at a faster pace in Q3 2022
Private home prices in Singapore increased by 3.8% in the third quarter of 2022, up from the 3.5% hike registered in the previous quarter, showed Urban Redevelopment Authority (URA) data.
Lee Sze Teck, Senior Director of Research at Huttons, said the price growth was the “fastest since Q4 2021 and is largely driven by the Outside Central Region (OCR) where prices accelerated to 7.5% from 2.1% in Q2 2022”.
For the first nine months of the year, private home prices expanded by 8.2%.
Meanwhile, rents for private homes also increased by 8.6% in Q3 2022, faster than the 6.7% hike seen in the previous quarter.
From January to September 2022, rents jumped 20.8%, said Tay.
He attributed the increase in leasing demand to the re-opening of borders and new policies aimed at attracting professional talent and locals in search of replacement homes.
2) HDB resale price growth moderates in Q3 2022
Prices of HDB resale flats rose 2.6% in the third quarter of 2022, moderating from the 2.8% increase in the previous quarter, showed HDB data.
Christine Sun, OrangeTee and Tie’s Senior Vice-President of Research and Analytics, said the slower price growth indicates that the rising interest rates and inflation is starting to take a toll on the housing sector, reported CNA.
Meanwhile, Mohan Sandrasegeran, One Global Group’s Senior Analyst for Research and Content Creation, attributed the continued hike in resale prices to the “steadfast demand for HDB resale flats and unrelenting interest in million-dollar deals, both of which fuelled overall resale price growth”.
Notably, resale flat transactions rose 10.7% to 7,546 flats in Q3 2022.
“Prices are likely to moderate further to 1% to 2% in the fourth quarter, giving rise to a full-year price gain of not more than 10%,” said Lee Sze Teck, senior director of research at Huttons.
3) Tenants brace for the worst amid rental hikes
With rents for both public and private housing hitting all-time highs, tenants are bracing themselves for the worst – that is, go look for a new place or pay a higher price, reported TODAY.
“It would be nice to stay but it really depends on the price,” said Mr Sanjay, who is renting a condominium in Novena with the lease set to expire in mid-2023.
“I guess that is to be expected with renting, and I think anyone renting has to be prepared to move.”
Rents for private homes rose 8.6% in Q3 2022, while rents for HDB flats jumped 20.9% during the first nine months of 2022.
Meanwhile, landlords said the rental hike is good for them given the rising interest rates.
“I think it’s good news for me as a landlord. I feel bad for tenants but I think everybody has to cope with rising interest rates,” said Ben Wang, who is renting out a condominium unit at Grandeur Park Residences in Tanah Merah.
4) 240 community care HDB flats to be launched in Queenstown in November 2022
About 240 community care apartments in Queenstown will be offered as part of November’s Build-to-Order (BTO) exercise, reported CNA.
Aimed at better supporting seniors to independently age within the community, the assisted living flats will feature senior-friendly housing with care services which can be scaled based on an individual’s needs.
This will be the second of its kind, with the first such project launched in Bukit Batok in February 2021.
The upcoming community care apartment flats in Queenstown will form part of the Queensway Canopy BTO development, which also consists of three- and four-room flats.
“This deliberate integration is to encourage and promote intergenerational bonding as well as foster inclusivity and community interaction,” said HDB, Ministry of National Development (MND) and Ministry of Health (MOH) in a joint factsheet.
Situated at Queen’s Crescent, Queensway Canopy is located within the Health District @ Queenstown. It is also near Alexandra Hospital, enabling medical and healthcare services to be incorporated into the residents’ care services.
5) Hill House launches in District 9, offering VIP buyers NFT digital art
Set to launch in the heart of District 9, Hill House is a collection of 72 homes perched on 11 Institution Hill.
Incorporating a nature-wellness theme, the development will feature facilities such as a modern rainforest and floral gardens.
The upcoming project, which overlooks Orchard Road, is a joint venture between developers Macly Group, Roxy-Pacific Holdings Pte Ltd, and LWH Holdings Pte Ltd. The show flat is set to open on 5 November 2022.
Hill House is also offering eight buyers NFT Digital Plants (digital art in the form of non-fungible tokens) during its VIP Preview Sales day, which is the result of a collaboration with NFT artist Serial Co. The date of the event is yet to be confirmed at press time.
6) Former Bedok South Secondary School to make way for housing
Demolition works at the 1.6-ha site are expected to take around five months, after which it will be turned over to the Singapore Land Authority, said a Ministry of Education spokesman.
HDB will then take over the site which has been zoned “Residential” with a gross plot ratio of 3.5. HDB said it will reveal more details on its plans for the site once they are finalised.
Property analysts expect the site to yield about 500 to 600 housing units, based on its plot ratio and size.
Nicholas Mak, Head of Research and Consultancy at ERA Realty, believes the site would more likely be used for public housing than private housing, since no BTO project has been launched within Bedok since November 2016.
7) Auction listings up 11% in Q3 2022, owner sale listings surge 46.8%
Auction listings in Singapore increased 11% quarter-on-quarter (QoQ) to 131 in the third quarter of 2022, with owner sale listings surging 46.8% QoQ to 91, revealed Knight Frank.
The growth in owner sale listings was evident across all property segments – residential listings climbed to 30 in Q3 from 22 in Q2, while industrial listings grew to 20 from 30. Retail also hiked to six from one, while shophouse listings expanded to 31 from 19.
Mortgagee sale listings, on the other hand, dropped 44% QoQ to 28.
“Despite the current climate of uncertainty, mortgagee sale listings have fallen, partly due to the encouraging conversion rate at auctions,” said Knight Frank.
“In addition, as property prices in most sectors remain on the rise, there is less urgency for most banks to commence foreclosure proceedings.”
In Q3 2022, success rates continued to be positive at 6.9%, with the gross sales value at $18.9 million.
8) Housing affordability to worsen amid hike in interest rates, property prices
Moody’s Investors Services expects housing affordability in Singapore to worsen over the next 12 months, on the back of rising interest rates and property prices, reported Singapore Business Review.
“Worsening housing affordability is credit negative for Singapore covered bonds because it will increase risks for new mortgages in covered bond pools,” said the rating agency.
It noted that first-time private home buyers needed to use 19.4% of their average monthly disposable income in August 2022 to meet their mortgage repayments on new loans, up from 17.3% in December 2021.
Moody’s believes this will affect housing affordability in Singapore as the gradual income gains of households may not be enough to offset the increases in property prices and interest rates.
Notably, it expects mortgage interest rates within the city-state to “continue to rise significantly through the middle of next year”.
This comes as central banks within advanced economies are expected to aggressively tighten their monetary policy to ease inflation.
Moreover, property prices are anticipated to continue on an upward trend, albeit gradually, over the next 12 months.
9) Young couples delay housing plans amid property curbs
Under the new measures, the LTV limit for HDB loans has been tightened from 85% to 80%, which means buyers have to shell out a 20% down payment, up from 15% previously.
“The market is already very competitive, and we were hoping to get a home in Queenstown near my parents, even if we have to get an older flat,” said Charlene Teo.
The 25-year-old account manager and her fiancé have been on the lookout for a four-room resale flat in Queenstown.
“But now, we may have to delay our plans due to the higher down payment.”
Another buyer, who wanted to be identified only as Joanne, described the 20% down payment as a “pretty huge deal” since she is searching for a five-room flat in Marymount or Toa Payoh with her husband.
“We’ve been looking since March, but many homes there are asking for more than $1 million. We’ve actually readjusted our budget a few times, but the prices were increasing faster,” shared Joanne.
10) Shophouse sales volume down 44.4% in Q3
The shophouse market saw sales volume decline 44.4% year-on-year to 35 transactions in the third quarter of 2022, revealed ERA Singapore.
The decline comes after shophouse sales hit their peak in Q2 2021, with 74 deals.
Shophouse sales value for Q3 2022 stood at $339.1 million, down 31.4% from the $494 million posted in the preceding quarter.
While the median transacted price for shophouses fell 3.2% QoQ to $4,434 per sq ft in Q3 2022, it still posted a year-on-year hike of 40%.
Meanwhile, median monthly rents for shophouses increased 2.7% QoQ and 15.3% year-on-year to $5.65 PSF in Q3 2022.
“The shophouse rental transaction volume has also increased steadily since mid-2020. In Q3 2022, it rose 6.8% QoQ to $8.88 million for the July to September period,” said ERA.
“This translate to an average of $9,820 per leasing transaction,” it added.
11) Office rents in Singapore’s central region climb 2.1% in Q3
Office rents within Singapore’s central region increased 2.1% quarter-on-quarter during the third quarter of 2022, a slower pace of growth compared to the previous quarter’s 2.4% QoQ hike.
This brings the total increase in URA’s rental index for office space within the central region to 6.3% during the first three quarters of 2022, reported The Business Times.
In Q3 2022, islandwide net office demand rose by 258,334 sq ft of net lettable area (NLA), similar to that seen in Q2 2022.
With this, total net demand during the first nine months of this year is positive at 376,737 sq ft, reversing the negative demand posted for the whole of 2021 at 613,542 sq ft.
The islandwide stock of office space declined by 21,528 sq ft of NLA, while the islandwide vacancy rate dipped to 11.7% at end-Q3 2022, from 12% at end-Q2 2022.
Farhan Shafie, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: email@example.com.