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Private home sales in Singapore fall in Q3
Nov 22, 2022
Private home sales in Singapore fall in Q3 Singapore
By   Internet
  • City News
  • Real estate market
  • real estate transactions
  • real estate data
Abstract: In the third quarter of 2022, private home transactions in Singapore fell by 9.7% quarter-to-quarter from the previous quarter, however prices rose by 3.8% from the previous quarter, which is the tenth consecutive quarterly increase in private home prices in Singapore.

The third quarter property report cited data from the Urban Redevelopment Authority of Singapore, the volume of private residential transactions in Singapore fell 9.7% quarter-on-quarter, however prices rose 3.8% over the previous quarter, which is the tenth consecutive quarterly increase in private residential prices in Singapore.


Prices of non-landed private homes rose 4.4% quarter-over-quarter, while prices of landed private homes rose 1.6% quarter-over-quarter.


Among the non-landed private homes, prices for private homes outside the Central District, which represents the mass of private homes, increased the most at 7.5%.


The price increase was mainly driven by sought-after developments such as Queshui Lenteng, AMO Residence in Ang Mo Kio and Sky Eden @ Bedok in Bedok.


In terms of volume, total private residential transactions of 6,811 units in the second quarter of 2022 fell to 6,148 units this quarter, a 9.7% quarter-on-quarter decline.


The most popular non-landed private residential units in Singapore were ordinary units of approximately 65-92 square meters (700-1,000 square feet), which also saw the largest increase in price of any unit type, up 11.1% quarter-over-quarter.


Ordinary units accounted for 27% of total transactions in the second quarter, rising to 36% in the third quarter.


The report mentions that foreign buyers accounted for 4.7% of total private home sales in the third quarter of the year, a slight decrease from 4.8% in the previous quarter.


Specifically analyzing foreign buyers, DYXA Industrial Consulting said that more foreign buyers chose to buy units in other central districts, which represent mid-range private homes, and in areas outside the central district, which represent mass private homes.


The percentage of foreign buyers for private homes outside the Central District increased to 2% from 1.4% in the previous quarter. This also represents more expatriate buyers taking into account the more affordable edge of downtown and suburban real estate projects.


The decline in total sales in the third quarter, as well as the decrease in the number of units sold to foreign buyers, was due to economic headwinds and rising mortgage rates.


Looking ahead, it is expected that the rate of increase for the full year 2022 will slow to 9% from last year's 10.6%, and that private home prices will still rise in 2023, except that the rate of increase will drop to 1-3%, while sales of new properties alone are expected to be between 7,000 and 8,000 units.


These are considerations based on the existing basis, if the economy further deteriorates, or a new round of cooling measures are introduced, the situation is different.

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Private home sales in Singapore fall in Q3