Private home prices up 0.4% in Q4; 2022 notches up increase of 8.6%: URA

Jan 27, 2023

PRIVATE home prices in Singapore inched up by 0.4 per cent in the fourth quarter of 2022, higher than the 0.2 per cent flash estimate by the Urban Redevelopment Authority (URA) earlier this month, and after increasing by 3.8 per cent in the previous quarter. For the whole of 2022, prices of private residential properties increased by 8.6 per cent, compared with the 10.6 per cent rise in 2021.

This was led by prices of landed homes, which grew 0.6 per cent in Q4, compared with the 1.6 per cent increase in the previous quarter. For the whole of 2022, prices of landed properties rose by 9.6 per cent.

Prices of non-landed properties increased by 0.3 per cent in Q4 2022, versus the 4.4 per cent rise in the previous quarter. For the whole of 2022, non-landed home prices grew by 8.1 per cent.

Prices of non-landed properties in the core central region (CCR) increased by 0.7 per cent in Q4, compared with the 2.3 per cent increase in the prior quarter. Non-landed properties in the rest of central region (RCR) grew by 3.1 per cent, after notching a 2.8 per cent increase in Q3. Prices of non-landed properties in the outside central region (OCR) decreased by 2.6 per cent, versus the 7.5 per cent increase in the previous quarter.

For the whole of 2022, prices of non-landed properties in the CCR, RCR and OCR increased by 4.8 per cent, 9.7 per cent and 9.3 per cent respectively.

Resale deals accounted for 75.1 per cent of all private homes sold in the fourth quarter, numbering 2,694 units, compared with the 60.5 per cent totalling 3,719 units in the third quarter. For the whole of 2022, there were 14,026 resale transactions, down from the 19,962 resale transactions in 2021.

Developers sold 690 private residential units (excluding executive condominiums or ECs) in the last three months of 2022, compared with the 2,187 units sold in Q3, and launched 504 units for sale, down from 1,455 units in the previous quarter. For the whole of 2022, they sold 7,099 private residential units, down from the 13,027 units in 2021, and launched 4,528 units for sale, versus the 10,496 units in the previous year.

In Q4, developers launched 1,257 EC units for sale and transacted 1,127 units. In the previous quarter, they did not launch any EC units for sale and sold 28 units. For the whole of 2022, developers launched 1,873 EC units for sale and moved 1,479 units, compared with the 1,609 units launched and 2,119 units sold in 2021.

The vacancy rate of completed private residential units (excluding ECs) decreased to 5.5 per cent as at the end of Q4, from 5.7 per cent in the previous quarter.

The rental market remained strong, with rents of private homes growing by 7.4 per cent in Q4, following the 8.6 per cent increase in Q3. For the whole of 2022, private home rents shot up by 29.7 per cent, compared with the 9.9 per cent increase in 2021.

Rents of landed properties grew by 6.3 per cent in the last quarter of 2022, compared with the 10.9 per cent increase in the previous quarter, while rents of non-landed properties rose 7.5 per cent, versus the 8.3 per cent increase in Q3. For the whole of 2022, rents of landed properties increased by 28.1 per cent, while rents of non-landed properties increased by 29.8 per cent.

By region, rents of non-landed properties in the CCR increased by 7.3 per cent in Q4, compared with the 7 per cent increase in the previous quarter. Rents in the RCR grew 7.3 per cent, after a 9.6 per cent rise in Q3. Rents in the OCR increased by 8.2 per cent, versus the 8.8 per cent gain in the previous quarter. For the whole of 2022, rents of non-landed properties in the CCR, RCR and OCR increased by 28.2 per cent, 30.3 per cent and 31.8 per cent respectively.

At the end of the fourth quarter, there was a total supply of 46,041 uncompleted private residential units (excluding ECs) in the pipeline with planning approvals, compared with 49,384 units in the previous quarter. Of these, 16,024 units remained unsold as at the end of Q4, compared with the 15,677 units in Q3.

After adding the supply of 5,706 EC units in the pipeline, there were 51,747 units in the pipeline with planning approvals. Of the EC units in the pipeline, 937 units remained unsold. In total, 16,961 units with planning approvals (including ECs) remained unsold, compared with 17,737 units in the previous quarter and 16,139 units a year ago.

Based on the expected completion dates reported by developers, 19,291 units (including ECs) will be completed in 2023. Another 12,824 units (including ECs) are expected to be completed in 2024.

“In total, around 32,100 units (including ECs) are expected to be completed in 2023 and 2024, which is around two times the 15,900 units completed in 2021 and 2022,” said the URA, adding that this will help to cater to housing needs in the immediate term.

More supply with planning approval, totalling around 19,600 units as at Q4 2022, will be completed beyond 2024.

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