What does 2022 have in store for the property market in Singapore?
Despite safe management measures that seemed ever-changing, dependent on the number of the COVID-19 cases in the community, Singaporeans have shown that they are more adaptable than ever and have not let this get in the way of their property plans.
The PropertyGuru Singapore Property Market Outlook 2022 (PMO 2022) reflects on the year gone by, pulling together key data and expert insights to predict what we can look forward to in 2022.
LOOKING BACK AT 2021
Property prices and transactions rose for six consecutive quarters, overcoming all adversities and bucking all trends. Even during traditional lull seasons, such as the Lunar Seventh Month in August and September, the market continued to boom.
With most borders remaining shut until the second half of the year, property activity in 2021 was primarily driven by local buyers.
Over 25,000 HDB flats reached their Minimum Occupation Period in 2021, resulting in a large group of HDB upgraders fuelling demand for larger HDB resale flats and entry-level condos. The luxury segment also saw a revival as many record-breaking transactions made headlines throughout the year. Many Good Class Bungalows changed hands too.
However, despite climbing prices, the Government announced in June 2021 that the market was not “overheated” yet, quelling rumours. In October 2021, the Government introduced a new Prime Location Housing (PLH) model to manage the prices of future HDB flats in prime locations.
WHAT TO EXPECT IN 2022
Prices have risen each quarter since the circuit breaker in Q2 2020, and although the pace of growth is slowing down, we expect property prices to continue rising for most of 2022.
With another estimated 31,000 HDB flats coming off their MOP in 2022, the impact of HDB upgraders is likely to continue. Additionally, foreign investors will come back into the market if Singapore continues to reopen its borders via Vaccinated Travel Lanes (VTLs).
In 2022, we are expecting only about 11 new launch projects. This lack of new launches is because the Government has been actively cutting back on the land supply over the past few years. With the GLS pipeline tapering, there was a slight buzz in the collective sales scene this year. Read More…
