1. Property market continues to be bullish
Despite the ongoing pandemic and even with new COVID variants such as Delta and now Omicron, the Singapore property market doesn’t seem to show any signs of slowing down.
In the first half of 2021, more than 14,000 HDB resale flats were transacted with prices increasing by about 6%. The private property sector also saw a price increase of 7.5% against last year.
With delays in the completion of BTO flats, both the HDB resale market and private properties will continue to see strong demand.
As more Vaccinated Travel Lanes (VTLs) are being launched, foreign interest in the property market is also expected to pick up, adding to the already strong demand.
2. Short supply, high prices
With the delays in the completion of HDB BTO and private property projects, demand will outstrip supply, resulting in a seller’s market, with prices going up.
HDB resale prices had gone up 6 consecutive quarters and are at an all-time record high, surpassing the previous peak, recorded in Q2 of 2013.
Private properties also saw 6 consecutive quarterly increases despite the government’s COVID heightened alert measures in July and August and fewer new launches due to the Hungry Ghost Festival.
With several upcoming launches in Q4, demand is expected to remain strong and prices are unlikely to come down.
The last enbloc fever was in 2018 and collective sales were non-existent the last couple of years.
Those projects that were sold en bloc then, have already been launched and many units sold.
With limited supply, demand is expected to outstrip supply.
3. New launches
The last few months have seen quite a few large projects launched, namely Normanton Park (1862 units), Canninghill Piers (700 units) and Pasir Ris 8 (487 units) amongst them.
The units in these developments were very quickly snapped up during the launch, further testimony to the pent-up demand.
And it is not just the mass market that is moving, the high-end market also saw significant interest, with a super penthouse at Canninghill Piers sold for a whopping $48 million and another penthouse at the luxurious Park Nova in Orchard Road, sold for $34.4 million within hours of the launch.
Upcoming new launches expected include The Watergardens @Canberra, Provence, Perfect Ten and Bartley Vue.
These new launches will certainly further fuel investors’ interest and continue to drive demand.
4. HDB Resale to remain strong
Currently, we are in a seller’s market and many sellers have upped their asking price.
In October alone, there were 20 HDB resale flats transacted above the million-dollar mark, with the highest at $1.26 million for a unit at Natura Loft in Bishan.
Even an executive apartment in Woodlands was sold close to the million-dollar range, at $980,000.
As of October, there were a total of 230 HDB resale flats transacting above a million.
Industry experts are predicting that demand will still be strong due to the dwindling supply and expect prices to keep going up, although at a slower pace.
5. Stay & work space
With the discovery of new COVID variants, the trend of working from home (WFH) is expected to continue.
Even though the government has indicated that fully vaccinated workers can return to the office come January 2022, some companies may adopt a cautious approach with hybrid working arrangements.
This has led to strong demand for homes outside the CBD and city area.
This is evident in the Q2 data from URA that shows prices in the OCR (Outside Central Region), increasing by 1.9% as compared to the CCR (Core Central Region), which increased 1.1% and the RCR (Rest of Central Region), which went up by only 0.1%.
As many workers are expected to WFH full time or at least 50% of the time, with the hybrid arrangement, demand for a bigger and more comfortable stay and workspace will continue to stay strong.
So, there you have it, 5 property trends to look out for when searching for your next home.
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