January 21, 2022

Categories: Investment

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2021 has been a phenomenal year for Singapore’s real estate market. For 2021, prices surged 10.6% – the highest annual growth recorded since 2010.“The growth in Singapore’s private home prices accelerated in the final quarter of last year, with a 5 per cent jump over the previous three months, underscoring the hot market that triggered December’s new property cooling measures.”1

However, as we all know by now, the latest round of property curbs include higher Additional Buyer’s Stamp Duty rates except for Singapore Citizens and Permanent Residents buying their first residential property. Total Debt Servicing Ratio and the Loan-To-Value limit for HDB loans were also tightened. The fallout from these measures are yet to be fully seen; but many predict that it could deter and lead to dwindling interest from foreign buyers and investors looking for short-term gains.

On the local front, here’s what happened in 2021 and what analysts have predicted for 2022:

Shrinking Private Housing Supply:

The existing pool of unsold private homes has fallen to 17,140 units as at the end of Q3 2021 – the lowest in about four years.2

Swelling Rental Demand:

Riding on the gradual reopening of borders, the rental market has picked up momentum and is likely to continue gaining pace.

Resale Market Remains Robust:

HDB resale prices hit new highs in Q3 2021, surpassing the previous peak from 2013.2

These factors could mean that the property sector is turning into a seller’s market, where homeowners have the advantage in setting prices. With lingering construction delays, those who require immediate housing will probably choose to rent; in turn driving up the demand.

Interested to know more? Reach out to me and let’s have a discussion about what you think.

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