Singapore private home prices record slowest price increase since 2020

Residential prices inched up by a measly 0.7% in Q1 2022.

Singapore’s residential property market recorded a lacklustre first quarter of the year with a slower pace of price growth and lower sales volumes. 

According to a report by OrangeTee, a confluence of factors may have softened prices, including new property curbs introduced in December and slower sales during the Chinese New Year lull. 

The market slowdown was followed by a new wave of inflationary pressures and supply chain disruptions caused by the Russia-Ukraine conflict. The impact of the war reverberated across the world, triggering turmoil in global financial markets and sparking trade fiction.

Here’s more from OrangeTee:

According to data from the Urban Redevelopment Authority (URA), the overall price index for private residential properties climbed at a much slower rate last quarter. The pace of price increase slowed down dramatically to 0.7 per cent quarter on quarter in Q1 2022 after cooling measures were imposed and macroeconomic uncertainties impacted market sentiment (see Market Summary below). Last quarter's price growth was the slowest price increment since Q2 2020 when prices rose by 0.3 per cent. 

Non-landed prices dipped by 0.3 per cent last quarter, falling for the first time since Q1 2020. By market segment, prices dipped the most in the city fringe, or Rest of Central Region (RCR), by 2.7 per cent, followed by non-landed homes in the prime districts, or Core Central Region (CCR) which slipped by 0.1 per cent. 

The suburbs, or Outside of Central Region (OCR) posted gains of 2.2 per cent. Prices of condos continued to rise despite the cooling measures as demand continues to outstrip supply. New home supply is lacking in the suburban areas as there are very few mega launches in OCR this year and the total unsold stock of launched projects continue to decline steadily every month. Mass market home buyers or HDB upgraders are not as adversely affected by the cooling measures as most do not own multiple properties.