202209 - Q2'22 - The Bulletin - Singapore HDB Resale & Private Residential Market

Updated: Nov 13, 2022

Outlook Of Private Residential Market

Looking ahead, primary market sales volume may grow at a slower pace due to limited supply of new launches and the tightening of monetary policies.
Despite that, private residential property prices would continue to grow, backed by several factors.
First, developers will pass on the higher land costs and development expenses to buyers in the form of higher launch prices.
Second, the robust HDB resale price growth will fuel buying demand from upgraders.
There could be some relief for tenants as a large supply of private housing is expected to be completed in the next several months. An estimated 7,000 housing units is expected to be completed in 2H 2022, followed by another 17,400 units to be completed next year.

In the second half of 2022, a cocktail of factors such as rising interest rates and the robust supply of BTO projects will influence the demand and subsequently, prices in the HDB resale market.
As interest rates rise, the cost of borrowing for homebuyers increases. In addition, some of the new BTO projects are locations that would attract many homebuyers. As a result, more eligible homebuyers may steer towards the more affordable BTO flats instead of the pricey alternatives in the resale market.
Nevertheless, the HDB resale market will still attract buyers with urgent housing needs, including newlyweds, upgraders and those who are ineligible for BTO flats.
Moving forward, as property prices in the private housing market continue to expand, HDB resale prices are likely to move in a similar direction. This could result in a 8% to 12% expansion of HDB resale prices for the whole of 2022.

Want to know more in details about the outlook of the market, you can click on the below PDF Document to learn more.

202209 - Q222 - The Bulletin - Singapore HDB Resale & Private Residential Market

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Author By:

Brian Loh CN

MSc. Applied Finance, University of Adelaide, Australia