Singapore residential prices rise 3.3% in 1Q2021: URA
By Charlene Chin
/ EdgeProp Singapore |
SINGAPORE (EDGEPROP) - Residential prices in Singapore rose 3.3% in 1Q2021, URA data shows, which is stronger than the 2.9% increase captured by flash estimates on April 1.
The price increase marks the fourth consecutive quarter of increase, which consultants attribute to the healthy take-up rate of new launches, low interest rates and investor confidence.
The pick-up in prices was largely driven by demand for landed properties and Good Class Bungalows. The landed segment saw an uptick in prices of 6.7% q-o-q, a reversal of the 1.6% q-o-q fall in the previous quarter, observes CBRE.
Meanwhile, prices in the non-landed segment rose by 2.5% q-o-q, attributed mainly to sales in the Rest of Central Region (RCR), which saw prices rising by 6.1% q-o-q in 1Q2021. New project launches like Normanton Park and The Reef at King’s Dock boosted momentum, each selling 730 and 341 units respectively in 1Q2021.
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Altogether, new sales transactions in the RCR hit 1,798 units, or 22% of total sales, in 1Q2021, almost doubling sales in the quarter prior.
Total private residential sales and new launches
Over the first quarter of the year, developers sold 3,493 private residential new homes (excluding ECs), which is 62.5% higher y-o-y. The best-selling projects for the quarter were Normanton Park, Midtown Modern (366 units) and Ki Residences at Brookvale (154 units)
In the resale market, 4,519 units were sold over the quarter, surpassing last quarter’s performance of 4,249 units. The figure is also the highest since 2Q2018.
Due to strong residential demand, unsold inventory eased to 21,602 units, which has been on the decline since the start of 2019, says CBRE. “On the back of positive market conditions, it is likely that upcoming tenders of GLS sites will see strong interest, while sites from the private market will also be attractive to developers looking for redevelopment sites,” it adds.
Rents rose in 1Q21, support from construction delays
On the other hand, residential rents in 1Q2021 rose by 2.2% q-o-q, as the islandwide occupancy level tightened by 0.6 percentage points to 93.6% from 93% in 4Q2020. This marks an improvement from the marginal rise of 0.1% in 4Q20.
Over the quarter, Core Central Region (CCR) saw rents increase the most by 2.9%; vacancy rates meanwhile suffered the largest decline, from 11% in 4Q20 to 9.5% in 1Q21.
Rents in the RCR rose by 2%, while vacancy fell from 7.3% to 6.1%.
Rents in the Outside Central Region (OCR) increased by 2.1% over the period, with a vacancy of 5.3%.
As travel is restricted, workers from neighbouring countries contributed to mass-market leasing demand, observes Knight Frank.
“The inventory of mass-market units available for rent had dwindled in supply and was readily absorbed by workers or companies needing to house their employees, leading to an uptick in mass market rentals in the quarter,” it adds.
Construction delays have also supported vacancy rates, as less units are completed on time, notes Ong Teck Hui, senior director, research & consultancy, JLL. Vacancy rates improved from 7% in 4Q20 to 6.4% in 1Q21.
As a result of Covid-19 delaying construction progress, URA expects some 6,796 private homes to be completed by 2021, and 11,264 units by 2022. This is lower than its estimate in 1Q20, which planned for 10,816 units to be completed in 2021, and 15,160 units to be completed in 2022.
Find out here on why Normanton Park project sold 600 units in 1 weekend
Check out the latest listings near Normanton Park, The Reef at King’s Dock, Midtown Modern, Ki Residences at Brookvale
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