Prices of landed properties increased by 5.9 per cent qoq in Q1, compared with the 0.6 per cent increase in the previous quarter.

Prices of non-landed properties rose 2.6 per cent in Q1, up from the 0.3 per cent increase in the previous quarter.

Giving a split by region, URA said that prices of non-landed private homes in the Core Central Region (CCR) or prime areas rose 0.8 per cent in Q1, after rising 0.7 per cent in the previous quarter.

In the Rest of Central Region (RCR) or city fringe, prices climbed 4.4 per cent, compared with the 3.1 per cent increase in the previous quarter.

Prices of non-landed properties in the Outside Central Region (OCR) or suburbs increased by 1.9 per cent, contrasting with the drop of 2.6 per cent in the previous quarter.

Overall private housing rental increase moderates, but landed rents jump 14.5%

Rentals of private residential properties increased by 7.2 per cent qoq in Q1, a marginal moderation from the 7.4 per cent increase in the previous quarter.

Rentals of non-landed homes rose at a slower rate of 6.2 per cent in Q1, after increasing 7.5 per cent in Q4.

However, rentals of landed homes increased by 14.5 per cent in Q1, a bigger jump than Q4’s 6.3 per cent rise.

Giving a breakdown of non-landed private residential rents by region, URA said that rents in the CCR rose 6.4 per cent in Q1, after rising 7.3 per cent in Q4.

Similarly, rentals in RCR increased by 6.2 per cent, compared with the 7.3 per cent increase in the previous quarter. Rentals in OCR expanded by 6.1 per cent on the quarter, after increasing 8.2 per cent.

The stock of completed private homes (excluding executive condominiums or ECs) increased by 2,864 units in Q1, compared with the increase of 4,245 units in the previous quarter. ECs are a public-private housing hybrid.

Islandwide vacancy rate for private homes rose to 6%

The stock of occupied private residential units (excluding ECs) increased by 887 units in Q1, compared with the increase of 4,496 units in Q4. As a result, the vacancy rate of completed private homes (excluding ECs) rose to 6 per cent as at end-Q1, from 5.5 per cent in the previous quarter.

Vacancy rates of completed private residential properties as at the end of Q1 in CCR, RCR and OCR were 7.7 per cent, 9.2 per cent, and 3.3 per cent respectively, compared with the 6.9 per cent, 7.9 per cent and 3.6 per cent in the previous quarter.

In the first quarter, developers launched for sale 1,312 uncompleted private homes (excluding ECs), up from the fourth quarter’s 504 units.

New sales, resale and subsale mix

Developers sold 1,256 private homes (excluding ECs) in Q1, up from 690 units in Q4.

In the resale market, 2,622 private homes changed hands in Q1, lower than the 2,694 units in the previous quarter. Resale transactions accounted for 63.6 per cent of all private home sales in Q1, compared with 75.1 per cent in Q4.

There were 243 subsale deals in Q1, higher than the 204 units transacted in the previous quarter. Subsales accounted for 5.9 per cent of all private home sales in Q1 2023, compared with the fourth quarter’s 5.7 per cent share.

Completions and pipeline supply

URA also said that a total of 3,785 private homes (including ECs) were completed in Q1, compared with the 4,423 units completed in the preceding quarter. The Q1 completion was around 60 per cent more than the average of around 2,400 units completed per quarter in 2022.

Projects completed in Q1 this year include Avenue South Residence in Silat Avenue (988 units of the total 1,074 units in the project), the Piermont Grand EC project in Sumang Walk (820 units), Kent Ridge Hill Residences (548 units) and Riviere in Jiak Kim Street (455 units).

As at the end of Q1 2023, there was a total supply of 44,846 uncompleted private homes (excluding ECs) in the pipeline with planning approvals, down from the 46,041 units in Q4. Of this number, 16,252 units remained unsold as at the end of Q1, compared with the 16,024 units previously.

After adding the supply of 5,398 EC units in the pipeline, there were 50,244 units in the pipeline with planning approvals. Of the EC units in the pipeline, 1,291 units remained unsold. In total, 17,543 units with planning approvals (including ECs) remained unsold.

Based on the expected completion dates reported by developers, 15,221 units (including ECs) will be completed in the remaining three quarters of this year. Another 21,421 units (including ECs) are expected to be completed in 2024 and 2025.

In total, around 40,400 units (including ECs) are expected to be completed between 2023 and 2025, which is around twice the 20,000 units completed from 2020 to 2022.

“This forms part of the total supply of about 100,000 public and private housing units to be completed between 2023 and 2025, which will help to cater to housing needs in the immediate few years ahead,” URA said.

Adding the supply of unsold units (including ECs) in the supply pipeline with planning approval, and those that have yet to be granted planning approval, around 25,600 units (including ECs) could be made available for sale later this year or next year.

Ramping up supply

“The government has further ramped up the supply of private housing on the confirmed list for the Government Land Sales (GLS) Programme in H1 2023 to cater to demand,” URA added.

The ramp-up in housing supply complements the hikes in additional buyer’s stamp duty (ABSD) rates that took effect on Apr 27. The government increased the ABSD rates for Singapore citizens and permanent residents purchasing their second and subsequent residential property, and foreigners, entities and trustees buying any residential property (except housing developers).

“These increases are to pre-emptively dampen the robust local and foreign investment demand to promote a more sustainable property market. The government’s priority is to support Singaporeans who need to buy residential property for owner-occupation. The government will continue to adjust its policies as necessary so that they remain relevant and calibrate housing supply, to promote a stable and sustainable property market,” URA reiterated.

The government will continue to adjust its policies as necessary so that they remain relevant and calibrate housing supply, to promote a stable and sustainable property market, it added.

Source: https://www.businesstimes.com.sg/property/singapore-private-home-prices-rise-33-q1-over-previous-quarter-taking-yoy-increase-114