For the whole of 2020, exclusive residence costs rose 2.2%, below the 2.7% rise registered in 2019.
Last quarter’s race walk was primarily driven by non-landed properties within the Rest of Central Region (RCR) along with the Core Central Area (CCR), which saw prices rise 4.4% as well as 3.2% quarter-on-quarter. Non-landed property costs in the Beyond Central Region (OCR) climbed 1.8% quarter-on-quarter.
” The development in prices is testimony to strong underlying need and also adequate liquidity in the personal domestic market,” said Wong Xian Yang, Affiliate Director of Research for Singapore as well as Southeast Asia at Cushman & Wakefield.
Lee Sze Teck, Director of Study at Huttons Asia, noted that the mild rise in prices reveals that the federal government policies “are still effective in suppressing prices as well as making certain a secure market”.
On the other hand, exclusive house need in Singapore was “surprisingly lively in 2014 amidst lockdowns and also strict travel limitations”, stated Christine Sun, Senior Citizen Vice President of Research Study and Analytics at OrangeTee & Connection.
Urban Redevelopment Authority Revelation
Urban Redevelopment Authority (URA) data revealed that overall of 20,909 private residences, leaving out executive condominiums (ECs), were marketed in 2020, up 9.2% from 2019’s 19,150 devices.
New house sales inched up by 0.7% to 9,982 systems in 2020 from the 9,912 devices changed in 2019. For Q4 2020, new home sales stood at 2,603 systems, below the 3,791 systems offered in the previous quarter.
Sun added that the COVID-19 pandemic “seemed to have reversed years of widespread growth in the rental market”.
Personal residence rentals slipped 0.6% for the entire of 2020 while boosting by just 0.1% in Q4 2020.
Occupancy rates for exclusive homes, excluding ECs, dropped to 93% in Q4 2020 from the previous quarter’s 93.8%.
However, Sunlight noted some brilliant places just recently.
” There appears to be much more rental need from abroad Singaporeans, PRs, and also long-term pass holders that have actually returned to Singapore in recent weeks. They require a short-term place to remain while hunting for more permanent accommodation,” she said.
” There are also a lot more abroad trainees seeking rental units now. Some residents that have simply marketed their personal homes or flats have additionally rented out in the interim as they await the completion of their new area.”
Sun anticipates private homes need to stay durable this year.
” Purchaser belief is likely to enhance even more as global development is anticipated to accelerate this year, underpinned by a steady go back to normality with the infection injections and wave of liquidity,” she said.
With this, she anticipates “total house prices to increase further by 1 to 4% in 2021 and brand-new residence rates might raise approximately 5%”.
Wong, on the other hand, sees private residence prices proceeding “to grow by approximately 5% year-on-year in 2021, barring the execution of brand-new air conditioning actions”.
” It is still prematurely to call if cooling down procedures must be executed at this stage as we have actually only seen a single quarter of strong development,” he claimed.
” Nevertheless, we see increased threats of added air conditioning steps being applied if rates continue to expand at this rate (> 2% per quarter) for an additional 1 or 2 quarters, the authorities might step in.”