Private housing prices in 3Q2022 up for 10th straight quarter to 3.4%

By Hailey Yu

/ EdgeProp Singapore |

October 3, 2022 5:06 PM SGT

Sky Eden@Bedok on preview day (Source: Frasers Property)

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SINGAPORE (EDGEPROP) - Private home prices continued their uninterrupted run amid rising interest rates and inflation, rising for the 10th straight quarter. URA flash estimate of the private residential property price index showed a 3.4% q-o-q increase in 3Q2022, a moderation from the 3.5% q-o-q growth in 2Q2022.

Table: Changes in the price indices for the different market segments between 2Q2022 and 3Q2022 are tabulated below:

	2Q2022	3Q2022 (Flash estimates)
Overall	3.5%	3.4%
Non-landed	3.6%	4.1%
Core Central Region	1.9%	2.3%
Rest of Central Region	6.4%	2.5%
Outside Central Region	2.1%	7.0%
Landed	2.9%	1.2%

Source: URA, JLL Research

The jump in the index was mainly attributed to suburban condos in the Outside Central Region (OCR) which registered a 7% jump on the back of three successful launches in 3Q2022, notes Tricia Song, CBRE head of research for Southeast Asia.

The new launches in the OCR from July to September included Amo Residence (which sold 362 units at a median price of $2,110 psf), Sky Eden@Bedok (which sold 121 units at a median price of $2,118 psf) and Lentor Modern (which sold 514 units at a median price of $2,108 psf). “The strong demand for these projects due to their attractive locations as well as a shortage of new supply contributed to their optimistic pricing,” says Ong Teck Hui, senior director of research & consultancy, JLL.

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Prices of non-landed properties in the Core Central Region (CCR) and the Rest of Central Region (RCR) rose by a more subdued 2.3% and 2.5% q-o-q respectively in 3Q2022. In 2Q2022, CCR prices saw a 1.9% q-o-q increase while RCR prices jumped 6.4% q-o-q. Landed properties saw prices moderate further to 1.2% q-o-q in 3Q2022, compared to 2.9% q-o-q in the previous quarter. This is mainly due to the widening gap between sellers’ asking prices and the prices that buyers are prepared to pay.

“Rising interest rates and macroeconomic uncertainties have not slowed the price momentum, which appears headed to deviate from fundamentals,” notes JLL’s Ong. “This is likely to have prompted the imposition of cooling measures that were announced on Sept 29, to ensure prudent borrowing and to moderate demand in the residential market.”

CBRE’s Song believes the measures could engineer a soft landing, with private home sales and price growth to moderate in the next six to 12 months. “We do not expect a crash, given the healthy household gearing, still-low unsold inventory and a supportive rental market,” she adds.

An estimated 6,365 new homes were sold in the year-to-September and sales are expected to slow in 4Q2022. CBRE Research now expects new home sales for 2022 to be around 8,000 units, a significant 39% decline from the 13,027 units in 2021.

Check out the latest listings near Amo Residence, Sky Eden@Bedok, Lentor Modern

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