Singapore property market remains ‘in balance’: RHB

The boost from the reopening of the economy is offset by the risks associated with the Russian-Ukrainian conflict.

The real estate market in Singapore remains balanced as the reopening of the economy and limited inventory levels are offset by the risks of higher interest rates, higher taxes and a deteriorating macro landscape caused by the Russian conflict -Ukrainian, said the banking company RHB.

In its report, the RHB cited figures from the Urban Redevelopment Authority where Singapore’s private residential property index rose 0.4% in the first quarter of 2022 compared to the 5% rise in the fourth quarter of 2021. .

Non-land property prices, meanwhile, fell 0.6% quarter-on-quarter, marking their first decline since the first quarter of 2020.

“The decline in non-land real estate prices was led by the rest of the central region (RCR), intermediate level, where prices fell by 3% qoq, followed by the central central region (-0, 5%) while prices in the mass market segment increased 1.9%,” RHB said.

In contrast, the landed property segment recorded a 4% jump in the first quarter of 2022 after rising 13.3% last year due to continued high demand for larger freestanding spaces.

While the latest reopening measures and easing of border restrictions are likely to boost investor confidence and revive demand from overseas buyers, RHB said it does not expect these factors to be significant and cause upward pressure on prices.

Private new home sales, excluding executive condominiums, fell 47% year-over-year in the first two months of 2022 due to a lack of new introductory offerings and the impact cooling measures.

RHB also noted that volumes in March are also expected to be 40% lower year-over-year due to the lack of major new launches.

In 2022, RHB expects primary sales volumes to decline by 30%-40% to 8,000-9,000 units due to a weaker launch pipeline and cooling measures.

Penny D. Jackson