CCR
RCR
OCR
Source: URA
Market Outlook
One possible reason for this slower increase in private residential property prices is the cooling measures, which have had an effect in dampening the demand for such properties. Additionally, the report highlights that the underlying demand for private residential properties remains high, given the tight labor market and continued economic growth, which could result in a potential increase of 2-4% in prices for 2022.
Key takeaway
- The private residential property index increased by 0.4% in 1st Quarter 2022, a slower pace compared to the previous quarter’s increase of 5.0%.
- Prices of non-landed private residential properties in the Core Central Region decreased by 0.5%, while prices in the Rest of Central Region decreased by 3.0%. Prices in Outside Central Region increased at a slower pace of 1.9%.
- The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-March.
According to the Urban Redevelopment Authority (URA) report, private residential property prices increased at a slower pace of 0.7% in Q1 2022, which is considerably lower than the 5% growth in the previous quarter. The report states that the prices of non-landed homes in the Rest of Central Region declined by 2.7%, which is a notable reversal from the 6.7% surge in Q4 2021.
One possible reason for this slower increase in private residential property prices is the cooling measures, which have had an effect in dampening the demand for such properties. Additionally, the report highlights that the underlying demand for private residential properties remains high, given the tight labor market and continued economic growth, which could result in a potential increase of 2-4% in prices for 2022. Despite this, the URA anticipates that the slowing trend could continue into the near future as the market stabilizes.
Prices of non-landed private residential properties in the Core Central Region (CCR) decreased by 0.5%, compared to the 2.7% increase in the previous quarter. Prices in the Rest of Central Region (RCR) decreased by 3.0%, compared to the 6.7% increase in the previous quarter. Prices in Outside Central Region (OCR) increased at a slower pace of 1.9%, compared to the 5.7% increase in the previous quarter.
The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-March. It is important to note that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small. Hence, the public is advised to interpret the flash estimates with caution.
Here is a table summarizing the changes in private residential property prices for the different regions:
| Region | Q1 2022 % Change | Q4 2021 % Change |
|---|---|---|
| Core Central Region (CCR) | -0.5% | 2.7% |
| Rest of Central Region(RCR) | -3.0% | 6.7% |
| Outside Central Region (OCR) | 1.9% | 5.7% |
Overall, the latest flash estimate suggests that private residential property prices in Singapore have increased at a slower pace in Q1 2022. The decline in prices in the CCR and RCR regions may be due to the COVID-19 situation and the implementation of travel restrictions. However, it is important to note that the flash estimate may not be an accurate reflection of the actual price changes, and the public should exercise caution when interpreting the data.
