Singapore prime residential prices up 0.6% in Q1 | Realestate Asia
, Singapore

Singapore prime residential prices up 0.6% in Q1

Typical prime non-landed residential prices also inched up 0.9%.

Despite the recent round of cooling measures in Singapore, JLL says prime residential prices continued inching up, registering marginal 0.6% and 0.9% q-o-q growths for luxury prime and typical prime non-landed properties respectively. The declining unsold stock situation supports price resilience, notwithstanding demand moderating after the cooling measures took effect on 16 December 2021.

According to JLL, prime rents for luxury and typical prime properties witnessed moderate growth during the quarter, rising 3.4% and 2.9% q-o-q respectively. The leasing market is expected to continue to grow, as the recent easing of border restrictions and steady recovery in the labour market bode well for leasing demand.

Here’s more from JLL:

Limited new launches result in lower prime new home sales

One prime project launched: Ikigai, a small 16-unit project that sold two units in April at a median price of SGD 2,150 per sq ft. Prime new home sales fell 40.7% q-o-q due to fewer launches. Top-sellers were Leedon Green, selling 44 units at a median price of SGD 2,816 per sq ft, and Kopar at Newton and The Avenir selling 37 units each at a median prices of SGD 2,463 and SGD 3,119 per sq ft.

In the prime resale market, sales volume was 40.6% lower compared to the last quarter as buyers take more time to consider purchases. Total prime sales volume dipped 40.4% q-o-q as buyers have become more cautious after the cooling measures were imposed.

Completed supply to pick up from 2022 onwards

In 1Q22, two prime projects were completed. Petit Jervois, a 55-unit residential development was completed in January while Juniper Hill, a 115-unit development received its temporary occupation permit (TOP) in end-March. Other projects initially slated for completion witnessed further delays during the quarter.

Completed supply is set to pick up in 2022 as the construction sector gradually recovers alongside sustained economic growth and labour market recovery. Some of the new projects arising from the active land sales market in 2017 and 2018 which encountered completion delays are also set to be completed in 2022 and 2023.

Outlook: Sales activity could recover in the second half of the year

The impact of the cooling measures is being felt, as transaction activity has dipped significantly this quarter. This is an expected temporary phenomenon after cooling measures are imposed. Demand is likely to pick up when buyers see stability in the market and regain confidence. Prime prices are expected to rise at a much slower pace this year, due to the effects of the cooling measures.

Prime rentals are expected to continue rising in tandem with healthy leasing demand arising from favourable business and employment conditions. The easing of border restrictions is likely to facilitate the inflow of foreign workers and contribute to leasing demand.

Note: Singapore Residential refers to Singapore's overall prime and luxury residential markets.

 

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