Singapore private residential sales to decline by up to 15% in 2022

This is due to fewer project launches next year.

Home prices in Singapore will continue to be driven up by limited supply and robust demand. According to OrangeTee, the unsold private housing inventory has dipped to an almost four-year low. 

The number of new project launches is expected to slide in 2022 as the land supply from the Government Land Sales (GLS) Programme was moderated over the past two years to keep pace with the uncertain economic outlook. Successful en bloc deals have been few and far between. 

Here’s more from OrangeTee:

Therefore, sales may dip by 10 to 15 per cent to around 26,500- to 28,500- units, since fewer private homes could be launched (Chart 1). The overall private home prices may rise by 6 to 9 per cent in 2022, after an estimated increase of around 6 to 7 per cent this year. 

The overall economic recovery scenario and travel corridor arrangement may have some positive impact on private home demand. Among the countries with Vaccinated Travel Lane (VTL) arrangements, we may see more impact from Malaysia, India and Indonesia as their citizens are among the top four foreign purchasers of condominiums in Singapore. From 2019 to Q3 2021, these buyers bought around 4,000 condominiums. 

The VTL with the United States, United Kingdom, Korea, France and Canada may have some moderate impact. Their citizens were among the top 12 foreign buyers of condominiums over the last three years, and they comprise around 12 per cent of the total foreign purchases here