Private Residential Overview for Q3 2022

Private home prices grew unabated in Q3 2022, boosted by healthy housing demand. Fresh mass market condo launches achieved robust sales at new benchmark prices during the quarter, lifting overall prices.

The latest cooling measures introduced from 30 September - including the revision of the medium-term interest rate for the total debt servicing ratio (TDSR) framework to 4% is not expected to have a severe impact on the private residential market.

With home prices rising at a faster pace in the other sub-markets, some buyers are finding value in the CCR market, particularly for freehold properties.

Private home prices rose for the tenth straight quarter in Q3 2022, growing at 3.4% QOQ – following a 3.5% growth in Q2. Private home prices have since risen by 7.8% from end-2021.

• Prices of non-landed homes in the Core Central Region (CCR) grew by a 2.3% QOQ in Q3 2022.

• Prices of non-landed homes in the Outside Central Region (OCR) surged by 7% QOQ in Q3 2022.

• Rest of Central Region (RCR), the price growth slowed from 6.4% QOQ in Q2, to 2.5% QOQ in Q3 2022.

Top 5 Selling Projects in Q3 2022

Rental Market for Q3 2022

In Q3 2022, landlords continued to enjoy a strong negotiation position due to robust

demand from tenants, both foreign and local.

Rental demand could grow further beyond 2022, supported by the limited rental stock, and ex-private property owners looking for interim housing before they can buy a resale flat due to to the newly-imposed 15-month wait-out period.

Market Outlook

Latest cooling measures will act as speed bumps to put the brakes on price growth, ensuring that private home prices remain stable. Prices are not expected to correct significantly as developers have little room to cut prices due to high development costs and limited unsold stock.

With interest rates set to rise further and slower economic growth looming, Buyers may opt for less central locations or smaller units to keep price quantum low.

Looking ahead, the factors that will support housing demand include the recovery in foreign employment levels as more expatriates return to Singapore after the easing of travel restrictions, the welcoming of new citizens and permanent residents, as well as family

formation.