Singapore private home prices mark 10th consecutive quarter of growth in Q3

Overall private residential prices grew 3.8% QOQ in Q3 2022.

According to a PropNex report, Singapore’s private residential and HDB resale segments chalked up another quarter of price gain in Q3 2022, marking 10 consecutive quarters of growth - riding out the pandemic and macroeconomic uncertainties along the way. 

Figures from the Urban Redevelopment Authority (URA) and the Housing and Development Board (HDB) showed that the momentum in price growth has not let up from Q2 to Q3 2022. Of note, prices of non-landed mass market private homes have shot up to a 13-year high, as new launches achieved benchmark prices during the quarter. 

Here’s more from PropNex:

Overall private home prices increased by 3.8% QOQ in Q3 2022, building on the 3.5% growth in Q2 2022. The final print released today was also higher than the flash estimate published earlier this month. In the first nine months of 2022, private home prices have climbed by 8.2% from the end of 2021, and could post an overall price increase of 9% to 10% for the full-year 2022 by PropNex’s forecast. 

The price growth in Q3 2022 was led by the Non-landed private home segment, where home values rose by 4.4%, following the 3.6% increase in the previous quarter. Meanwhile, in the Landed homes segment, the price growth slowed from 2.9% QOQ in Q2 to 1.6% QOQ in Q3 2022, owing to the weaker sales volume of landed properties during the quarter.

Within the non-landed homes segment, the Outside Central Region (OCR) led the charge with a 7.5% QOQ price increase in Q3 2022 – the strongest quarterly price growth since Q3 2009 where prices surged by 16.1%. The price increase in Q3 2022 was driven partly by the three new launches – AMO Residence, Lentor Modern, and Sky Eden@Bedok – which achieved robust sales at benchmark prices which averaged at over $2,100 psf. In addition, URA Realis caveat data also showed that several existing launches on the market have sold units at higher average prices in Q3 over the previous quarter amid the dwindling stock of new homes in this sub-market. In the 9M 2022, OCR non-landed home prices have risen by 12.2% from end-2021.

In the Rest of Central Region (RCR), non-landed home prices rose by 2.8% QOQ in Q3 2022, moderating from the 6.4% QOQ growth in the previous quarter due to a lack of fresh project launches in the RCR in Q3. Some of the projects that garnered higher average transacted unit prices in Q3 2022 included CanningHill Piers, Riviere, Meyer Mansion and One Pearl Bank. In particular, Riviere was the best-selling new launch in the RCR, shifting 70 units at an average price of $2,890 psf during the quarter. In the 9M 2022, RCR non-landed home prices increased by 6.4% from end-2021. 

Meanwhile, the Core Central Region (CCR) continued to see gradual price recovery. Prices of non-landed CCR homes climbed by 2.3% QOQ in Q3 2022, up from the 1.9% growth in the previous quarter. The best-selling CCR new projects in Q3 were: Hyll on Holland which sold 71 units at an average price of $2,687 psf (Q2: 37 units, $2,670 psf); Perfect Ten which transacted 65 units at an average price of $2,956 psf (Q2: 37 units, $2,898 psf), and Leedon Green which moved 64 units at an average price of $2,813 psf (Q2: 49 units, $2,783 psf). In the 9M 2022, CCR non-landed home prices increased by 4.1% from end-2021.

In the EC market, just 28 new units were transacted in Q3 2022 – markedly lower from 193 units in the previous quarter – given the dearth of new EC launches. North Gaia in Yishun drove sales in Q3, selling 19 units at an average price of $1,272 psf, according to caveats lodged.

All in, developers launched 1,455 new units (ex. ECs) and sold 2,187 new private homes (ex. ECs) in Q3 2022. In 9M 2022, new private home sales totalled 6,409 units (ex. ECs). Meanwhile, overall private resale transactions declined to 3,719 units in Q3 2022 from 4,236 in the previous quarter – taking overall resale volume to 11,332 units in 9M 2022. PropNex projects that 14,500 to 15,000 units may be transacted in the private resale market in 2022.

Q3 2022 HDB Resale Price Index

Figures released by the Housing and Development Board (HDB) showed that resale flat prices rose by 2.6% QOQ in Q3 2022, following the 2.8% QOQ gain in the previous quarter. The increase came amid a 10.7% growth in resale volume from 6,819 flats in Q2 2022 to 7,546 flats in Q3 2022. In the first nine months of the year, HDB resale prices have now risen by about 8% from end-2021 and total resale HDB flat transactions came up to 21,299 units.