In the past two years, we have seen massive increases in private property prices in Singapore. With many residents and foreigners raising concerns about the costs, the government stepped in and put measures in place to mitigate the impact. These include greater taxes on second and subsequent property purchases, plus restrictions on loans.
With this shift in rates and the resultant drop in new launches, new market trends have already appeared. Let’s look at the top three for prospective new homeowners in Singapore.
1. Private property prices to rise
In 2021, prices for private property in Singapore increased 10.6% from the previous year. While cooling measures have subdued prices in 2022, we can still expect a rise between 1% to 4%, reports real estate agencies, Knight Frank and JLL. As it stands, the rates in the first quarter went up by 0.7%, yet the increase is still remarkably lower than those recorded in the previous two years.
One of the primary reasons for the continued rise in prices is a lower supply of new property launches. Compared to 10,800 in 2021, we may only see about 5,000 to 6,000 new homes built this year. You also have to consider how the latest cooling measures will impact the developers, who now have higher stamp duties to contend with. This may make it a challenge for them to introduce multiple projects this year – we discuss this more in the next point.
If you’re looking to buy a private property in Singapore, you may not experience as much of an impact unless this is your second purchase or you’re a foreign property investor. Since first-time homeowners will benefit better with the cooling measures, it may not be surprising to see more Singaporeans upgrading from a public to a private property.
2. There will be low supply and fewer launches of new non-landed private property
One of the other measures that the Singapore government put in place to reduce the prices of new property developments is the Government Land Sales (GLS) Programme. It ensured that less land became available for sale for future development. This therefore resulted in fewer launches of non-landed private property. We estimate that we may only see about 40 launches in 2022.
Of these, there are likely to be five major hotspots with over 100 units each that will draw the attention of prospective private homeowners. Be sure to be on the lookout for Piccadilly Grand, LIV @ MB, The Arden and Sceneca Residence within the first half of the year, alongside a project along Ang Mo Kio Avenue 1 which has not been designated a name as yet.
While the lower supply of private property means that buyers will have fewer choices this year, these major developments will help establish more private residences in areas where there has been a low supply before. It will be ideal for first-time buyers to get into the market.
3. Demand for rental will rise with borders opening
With Singapore opening the land border with Malaysia, some people expected leases to decrease or expire as Malaysians and other foreigners returned home. Yet, the increase in prices and reduction in new properties may well see a rise in the demand for rentals instead.
Construction delays may also be a massive concern for those who need urgent accommodation with the borders now open. The rise in new demand for condo rental in past and upcoming launches will most likely be from Singaporeans who are returning to the country, those who are temporarily working on local projects, and students.
Stay up to date with New Launches Review
With this vital information at hand, you don’t want to miss out on any of the latest details regarding new condo launches in Singapore. Make an informed decision when looking for new private property by keeping your fingers on the pulse with New Launches Review.
Our site covers new property launches per region. You can find information on condo launches in the core central region and beyond, plus private property developments in the east, west, north and northeast. We also provide details on cluster housing and executive condominiums, as well as the latest property news.
These pages are useful for many Singaporeans who want the latest information on which property to buy at the right time in the best location.