Happenings in the property market

Didn’t have time to catch up on the latest property market news? We have compiled a list to get you up-to-speed with the trends and happenings that would have an impact on your property investment journey.

1. Surge in HDB resale flat prices

The buoyant HDB resale market saw property prices surge by 12.7% in 2021— the highest year-on-year price increase since 2010. While fewer HDB resale flats changed hands in the last quarter of 2021, in part due to the implementation of further cooling measures in December, the number of resale transactions had still gone up by 3.9% from that in Q4 2020.

2. Increase in private property transactions in 2021

The rise in prices last year did not make a dent on the demand for private homes, across both the primary and secondary markets. As with the trend observed in the HDB resale market, the price index of private homes increased by 10.6%, the highest hike since that of 17.6% in 2010. HDB upgraders had also likely contributed to the demand for new condominiums and executive condominiums (ECs), particularly entry-level Outside Central Region (OCR) projects.

3. Jalan Tembusu and Lentor Hills tenders

Tenders for the 99-year leasehold residential sites closed, with the Jalan Tembusu site fetching a record-breaking bid of $768 million, which translates to $1302 per sq ft per plot ratio (psf ppr). The Lentor Hills Road (Parcel A) site had, on the other hand, received $586.6 million, or $1060 psf ppr. These tenders highlight how despite the continued demand for land, developers are more cautious in their bids, in view of the newest cooling measures.

4. Tightened monetary policy to have limited impact on the property market

The Monetary Authority of Singapore’s (MAS) move to raise the appreciation rate of its policy band “slightly”, is unlikely to discourage foreign property developers and buyers. In fact, it might even give foreign investors greater confidence in the Singapore dollar, which would then spur the property market.

5. Exuberance in landed property market

As most of us have turned to working at home, the need for spaciousness is greater than before. This has also increased the demand for landed properties, particularly Good Class Bungalows which racked up approximately $751.4 million in sales.

Keen on leveraging trends in the property market, to grow your assets? Find out how Wonder Homes could help you, at https://www.wonderhomesg.com, and get in touch with us today!