29th March to 4th April 2022
Private home prices and HDB resale prices continued on an upward trend, increasing 0.4% and 2.3%, respectively, in the first quarter of 2021. Meanwhile, North Gaia, Sing Holdings’ executive condominium (EC) project in Yishun is set to open for preview and e-applications on Thursday, 7 April.
1) Private home prices up 0.4% in Q1 2022
Private home prices in Singapore increased 0.4% in the first quarter of 2022, showed flash estimates from the Urban Redevelopment Authority (URA).
This marks the eighth consecutive quarterly increase, albeit growth significantly slowed from the 5.0% hike registered in Q4 2021.
“The cooling measures on 16 December 2021 tempered the pace of increase in private property prices,” said Huttons.
Tricia Song, Head of Research for Southeast Asia at CBRE, said the plateauing of prices is largely in line with expectations.
By region, prices of non-landed private homes in the Core Central Region (CCR) and Rest of Central Region (RCR) declined 0.5% and 3%, respectively, while the Outside Central Region (OCR) outperformed with a 1.9% hike.
Related article: Singapore District Map: Defining the CCR, RCR and OCR by the 28 Districts
Song attributed the price slump in the RCR to a “normalization in prices following the strong sales and price performance of Canninghill Piers in Q4 2021”, while prices in the CCR were “undermined by the larger impact of cooling measures on investors and foreigners”.
The increase recorded by the OCR is notable as it was the only region to see price growth despite the lack of new mega projects or EC launches in Q1 2022. This indicates continued strong demand for residential properties in the OCR, where non-landed private homes hit the sweet spot between size and price point. The enduring work from home arrangements brought on by the COVID-19 pandemic has changed the way we shop for homes. More favour larger homes, with these preferences being like to continue in post-pandemic Singapore.
2) HDB resale prices rise 2.3% in Q1 2022
Resale prices of Housing and Development Board (HDB) flats increased 2.3% in the first quarter of 2022, easing from the 3.4% growth posted in the fourth quarter of 2021, showed flash estimates from the HDB.
Transaction data showed that around 6,500 resale HDB flats were shifted in Q1 2022, down 18% from the 7,940 units transacted in the previous quarter.
“The moderation in sales and price growth in Q1 2022 is unsurprising owing to the seasonal lull and as buyers take stock of the market following the introduction of new cooling measures in December,” said PropNex.
Related article: Do Singaporeans Agree with the Latest Property Cooling Measures? How Many Are Affected?
Looking ahead, analysts expect demand for HDB resale flats to remain resilient this year as more than 31,000 HDB flats are estimated to reach their Minimum Occupation Period (MOP).
“This could be the largest number of flats meeting the MOP since HDB ramped up its BTO supply since 2011,” said Huttons.
And while such units could help address the supply imbalance, these newer homes may “command higher prices and underpin price increases in the HDB resale market up to 8% in 2022”, added Huttons.
Related article: 60 Freshly MOP-ed HDB Resale Flats in Singapore to Expect in 2022/2023
The large crop of freshly MOP-ed HDB flats saw many of them sold on the open market in 2021. Flush with cash, these HDB upgraders are going for larger, resale HDB flats, and are willing to fork out significant Cash Over Valuation (COV) sums, as we learnt from our Singapore Consumer Sentiment Study H2 2021.
More Singaporeans are prioritising space, connectivity, and amenities available in their immediate neighbourhoods. Therefore, properties in mature estates on the city fringe, which typically see higher prices, have become even more sought after. Hence, HDB resale prices will likely continue to increase, but not at the blistering pace seen in 2021.
3) North Gaia to open for preview, e-applications on Thursday
North Gaia is an EC project located at Yishun Close. Source: Sing Holdings Limited
North Gaia, Sing Holdings’ EC project in Yishun, is set to open for preview and e-applications on Thursday, 7 April.
Spanning eleven blocks, the development will feature 616 units of three- to five-bedroom apartments. Unit sizes range between 958 sq ft and 1,593 sq ft.
In a release, Sing Holdings revealed that about 85% of the units boast north-south orientation, while selected three-bedroom units “offer an optional configuration that can be transformed into a guest room, a hobby space or a study room with dual access”.
Related article: Sun Direction Singapore: What’s the Best House Facing Direction for Your Home?
The first EC to be built in Yishun since 2015, North Gaia enjoys views of nature as well as the surrounding Khatib Bongsu Nature Reserve.
Set to be completed in 2027, the development offers 60 facilities including two 50m swimming pools, a co-working space, a tennis court, a 450m jogging path, a mini rock climbing wall and electric vehicle charging stations.
2021 will see four new EC launches. Aside from North Gaia, we can expect Tengah Garden Residences, an EC at Bukit Batok West Ave 8, and another EC at Tampines St 62. All ECs are located in the OCR.
Related article: Buying Resale Condos in Singapore (2022): Are Fully-Privatised ECs Cheaper?
4) Good class bungalows at Chancery Lane, Jervois Hill set new record prices
While the sales momentum in the Good Class Bungalow (GCB) market slowed during the first quarter of 2022, new price highs were registered in the Bukit Tunggal and Chatsworth Park GCB area, reported The Straits Times.
This comes after a GCB in Chancery Land was sold for $66.06 million, while another bungalow at Jervois Hill was snapped for almost $59 million.
Caveats data showed that the Chancery Lane GCB deal is the largest in terms of price quantum so far this year.
Meanwhile, Han Huan Mei, Research Director at List Sotheby’s International Realty, attributed the slowdown in the GCB market to the Chinese New Year holiday lull, the latest round of property curbs as well as the uncertainties caused by the Russia-Ukraine conflict.
“That said, Singapore’s reputation as a safe haven for investors will still attract the ultra-high-net-worth foreign investors to park their funds here,” she said.
And while landed housing sales volume for this year will not be as high as last year, prices are expected to remain firm and possible trend upwards, reported The Business Times.
In 2021, the number of GCBs that changed hands was at a high – 93 transactions took place for a total value of $2.8 billion. The limited supply and the likelihood of growing prices will likely keep demand strong.
5) Les Maisons Nassim penthouse sold for $59.77mil
A 12,066 sq ft penthouse at Les Maisons Nassim, an ultra-luxury freehold condominium project in District 10, has been sold for around $59.77 million.
This works out to $4,953 per sq ft (psf), making it the lowest price in terms of psf for the six Les Maisons Nassim transactions listed to date on the Urban Redevelopment Authority’s REALIS platform.
The Business Times reported that developer Shun Tak Holdings negotiated and agreed upon the unit’s price during the nascent stage of the project early last year.
Related article: 8 Super Penthouse Condo Units for Sale in Singapore For Those Who Want to Live the High Life (2022)
“The buyer had some requests for customisation. It’s only of late that we were able to confirm that the customisation could be done and the option was issued,” said Joanne Goh, Associate Director for Sales and Marketing at Shun Tak.
Notably, the fifth-floor unit was sold on a “bare shell” basis without fittings and finishings, enabling the buyer to kit out the penthouse based on his own preference.
6) Four landed residential plots at Upper East Coast Road on sale for $32.2mil
Source: Huttons
Four freehold landed plots located at 92B, 94G, 96 and 96A Upper East Coast Road have been put up for sale via expression of interest (EOI) with an indicative price of $32.2 million, revealed Huttons.
Zoned for residential use under the 2019 Master Plan, the District 15 landed plots have a plot ratio of 1.4 and a combined area of 19,653 sq ft. This means the indicative price works out to a land rate of $1,638 per sq ft (psf).
“Compared to many recent landed transactions in District 15 which have crossed $2,000 psf, this is a very attractive price. We expect keen interest in these four landed plots,” said Huttons Group Senior Director of Research Lee Sze Teck.
The EOI exercise for the land plots closes on 19 April.
These landed plots are about 200m away from the future Siglap MRT station on the Thomson-East Coast line. Proximity to the MRT station, East Coast Park, amenities and F&B options in the trendy Siglap/Joo Chiat/Katong area, and choice primary and secondary schools in the area make the landed plots highly attractive sites.
7) Residential landlords should temper optimism amid looming challenges
While private residential landlords can cheer the rental market’s positive momentum, they may have to temper their optimism amid some looming challenges.
Rents for private residential properties increased 9.9% year-on-year in the fourth quarter of 2021, in line with the 10.6% hike in private home prices, reported The Business Times.
Related article: Renting in Singapore (2022): 3 Upcoming Trends for the HDB and Private Rental Market
Landlords, however, may have to temper their optimism on the rental outlook since the supply of private homes is increasing. For this year, about 11,247 new private homes and ECs are expected to be completed, while 19,840 units are slated for completion in 2023.
Property tax rates for homes will also increase from 2023, with high-end homes witnessing a steeper hike. The property tax rate for non-owner-occupied homes will rise from 10% to 20% of annual value currently, to 11% to 27% from 2023, and 12% to 36% from 2024.
8) Restrictions on PLH model push some to acquire condos, regular flats nearby
River Peaks I &II, the Rochor BTO project launched in Nov 2021, was the first BTO project launched under the PLH model. Source: HDB
Many home buyers who are looking to acquire flats in certain popular locations hope that the upcoming BTO project in their preferred locations will not be covered by the Prime Location Public Housing (PLH) model.
This comes as PLH flats are subject to certain rules, such as a longer MOP of 10 years, to ensure that such flats are primarily bought for owner-occupation.
Owners are also not allowed to rent out the entire flat even after fulfilling the MOP – providing owners of nearby private homes and non-PLH flats an advantage as they can rent out their entire home.
Related article: Prime Location Public Housing Nov 2021 Rochor BTO Flats: 6 Singaporeans Answer Why They Did or Did Not Apply
“When the government starts to offer new PLH flats in certain greenfield locations such as in the Greater Southern Waterfront, they will also develop the infrastructure, amenities and services in those areas,” said Nicholas Mak, Head of the Research and Consultancy Department at ERA Realty Network in an article posted in The Business Times.
With the locations more developed, the leasing demand in those locations will improve, benefitting landlords of private homes and non-PLH flats within and near such areas. “This will subsequently increase the investment demand for non-PLH properties,” he added.
In the most recent February 2021 BTO exercise, King George’s Heights, the HDB BTO Feb 2022 Kallang/Whampoa launch, saw stiff competition. But Dakota Crest in Geylang emerged as the most competitive project of the exercise
Related article: HDB BTO Application Rate (From 2020 to Now): Which Estates Are The Easiest To Get BTO in
Thinking of applying for the upcoming May 2022 BTO exercise? Read the full review here.
9) LTA to launch tender for installation of 12,000 EV charging points
The Land Transport Authority (LTA) is set to launch a tender for the deployment of 12,000 electric vehicles (EV) charging points at nearly 2,000 HDB carparks this April, reported Channel News Asia.
LTA noted that the move will help meet the target for every HDB estate to be EV-ready by 2025.
Related article: Which Condos in Singapore Have Electric Car Charging Points?
To be awarded in Q4 2022, the tender comprises up to 10 packages, each of which will cover about the same number of carparks. They will also be valid for 10 years.
Successful tenderers will have to install at least three to six charging points within their designated carparks by end-2025, with the installation of charging points starting in Q1 2023. They can also add more during their concession period, up to a maximum of 12 charging points.
10) CBD Grade A rent posts highest pace of growth since Q2 2021
Singapore saw Grade A office rent in the Central Business District (CBD) increase 2.3% quarter-on-quarter to $10.46 per sq ft (psf) per month in the first quarter of 2022 from $10.23 psf per month in Q4 2021.
JLL Singapore said it is the highest pace of growth since rents turned around in Q2 2021. It also marked the third consecutive quarter of accelerated growth.
Overall, rents have recovered by 6.9% from their recent bottom of $9.79 psf per month in Q1 2021.
Marina Bay registered the sharpest quarter-on-quarter rent growth, increasing 3.2% from $11.77 psf per month in Q4 2021 to $12.14 psf per month in Q1 2022.
Andrew Tangye, JLL Singapore’s Head of Office Leasing and Advisory, said demand for office space “continues to come from the technology, consumer and non-bank financial sectors”.
Looking ahead, JLL expects CBD Grade A rent to rise by at least double the 4.3% posted in 2021.
11) Telok Blangah House CBD Grade A rent posts highest pace of growth since Q2 2021
Source: SRI
Telok Blangah House, a prime freehold commercial and residential site at 52 Telok Blangah Road, has been put up for sale via Public Tender, with a $98 million guide price, according to The Business Times.
Set against the backdrop of Mount Faber and the Southern Ridges, the property is a 14,841 sq ft site located at the Sentosa Gateway. Nearby amenities include Harbourfront MRT station, Resort World Sentosa, VivoCity, and Universal Studios Singapore.
Zoned for ‘Commercial and Residential’ use under the 2019 Master Plan, the District 4 property has a plot ratio of 3.5. The site can be potentially redeveloped into a mixed development, housing 20,788 sq ft of commercial-use spaces as well as 34 new residential units.
Interested parties should submit their bids by 5 May 2022, 3pm.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg
