Singapore property market starts 2022 on a high note – Report

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Despite new property tax rates, possible inflation with recession and/or rising unemployment due to the Russian attack on Ukraine, and future interest rate hikes, Singapore’s property market for the first quarter of this year “started off on a high note.

The rental market for the next quarter is expected to remain strong, especially with the easing of pandemic restrictions and the expected return of foreigners to the country, according to PropertyGuru’s second quarter 2022 Singapore property market report.

Public housing will remain in high demand and the HDB resale market is expected to remain buoyant until BTO (Built To Order) supply is “fully recovered over the next four years”.

The report says the HDB and private rental markets are doing well, with median asking prices for rental properties listed on PropertyGuru Singapore hitting a new high.

Median selling prices per square foot (PSF) for HDB resale apartments have increased slightly, and while the growth in asking prices for these apartments has slowed, demand remains strong, largely due to apartment construction delays BTO.

Interestingly, economic districts such as Hougang, Punggol and Sengkang recorded the most transactions in the first quarter of the year.

Other highlights: Asking prices, especially for private non-land properties, have been rising at a slower pace. The report notes that growth has been more measured than in the past.

Although the asking price of landed properties increased the most (7.15%), this could be due to the fact that 77 units were sold at Belgravia Ace (in Ang Mo Kio), and “does not indicate a tendency to increase over the next quarter.

The report notes, however, that as the cost of borrowing has increased this year and is expected to continue to do so, demand could slow as buyers become more cautious.

As mentioned earlier, demands in the HDB rental market remained strong due to construction delays at BTO.

“The HDB apartment rental price index for the first quarter of 2022 stands at 185.69 points, compared to the overall rental price index of 145.22 points,” the report noted.

Other BTO apartments have been launched for sale, but these will be completed in the next three to five years.

The report notes that rental prices could increase due to the return of expats to Singapore. He added that with the Additional Buyer’s Stamp Duty (ABSD) rates now at 30% for foreigners, they can opt for renting instead of buying. /TISG

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Penny D. Jackson