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Six 2022 real estate trends in Singapore

And what they mean for you as a potential HDB, condo or landed buyer.

cover image credit: Asiaone With 2021 coming to an end for the property market, we can safely say this year has been dominated by the following:

The Rise and Rise of the HDB resale market

Prices in the public housing market has for 17 straight months and as at end of November , prices are up by 13.8% y-o-y across all matured and no matured estates.

Total of 223 > $1m HDB transactions this year which is around 200% higher than the same period as of last year.

2021 should be a landmark year since the last decade which I would say is a remarkable turnaround for a segment that was “sleepy” for most parts of the decade.

Private home prices have climbed 8.7% since start of the pandemic in 1st Quarter of 2020 to date.

New Private home sales in first 10 mths have surpassed full year sales in 2018 . 2019 and 2020, suggested strong sales.

Property Guru’s biannual consumer sentiment study in August this year have reflected around 74% of Singaporeans surveyed still intend to purchase a home.

With the above being said, 2021 has been nothing short of stellar. But the year is almost over.

What’s likely in store for 2022?

I am going to try to make a couple of educated predictions for the next year.

#1: HDB resale market to remain strong

Coming off a stellar year of results in 2021 and buyers still concerned with the delivery of BTO flats and delays, the resale market should still see strong interest and demands.

With the newer price points set, it should help with valuations as more units could be sold without COV.

Coupled with more HDB owners selling into the strength of the market, we should still see a strong sales volume going into 2022.

What it means to you:

Continue to stay active if you are a home seeker. There will be options available as more sellers come onboard but also put in strong offers if you are keen on a particular unit. You are not the only buyer in the market.

#2: New launch sales volume should drop next year

Not by virtue of demand but by virtue of a lack of inventory in the new launch segment.

To date at end of October, close to 11,000 units of new launch units have been sold. This is stellar compared across the full year numbers of the last 3 years.

Potentially 32 new launches will hit the market in 2022.

11 in the core central region, 9 in the rest of core region and 12 in the outside core region.

The total number of units being offered based on the above could be approximately >9000.

With the launches spread out across 2022, logically we may not see the numbers triumph 2021.

What it means to you:

If buying a new condominium unit is in the cards, you should possible look ahead and what potentially are the new offerings and if they are kind of investment units you are gunning for.

The locale, the price points, the type of development etc. it will be good to look into 2022 ahead and plan if what is currently available should suit u better.

Perhaps what you want or need is already available.

#3: Resale Landed & Non Landed momentum may continue, albeit a little different than each other.

2021 saw almost 15,000 units and 3200 units transacted in the resale non landed segment and landed segment.

Those amount to close to 67% and 55% increase versus total of last year and the year has not ended.

The strength in HDB markets has truly benefit the private resale market as upgrader activity and recycling real estate capital dominated 2021.

In 2022, if we see HDB market volume and the velocity of the momentum continue like it did in 2021, the OCR and RCR may benefit from the buying activity and price movements.

On the contrary, landed segment may see a huge price mismatch as the limited supply in the segment itself of approximately 75,000 units in Singapore , may see a lack of listings as the upgrading in this segment may be limited as prices continue to climb.

Will more likely to see downgrading activity as the older generation and estate sales seek buyers but the mid tier of trading up within the landed segment may take a breather.

What it means to you:

If you were to be searching in the private condo in the resale market, there is likelihood that units are asking for a premium over the valuation. This is not unusual.

If you are a buyer, you may wish to consider the amount of work done to the unit as well as how long you are likely to be using or holding this purchase. This may mitigate the numbers when you are offering as sellers will have a lot more to consider if they were to sell to upgrade.

If you are seeking to buy a landed home in 2022 and if you have no plans to rebuild, there is a much stronger chance for you to buy if you are willing to trade land size for structure as well as location as it is not cheap to rebuild and time will also weigh in with cost of rental whilst waiting to build.

#4: Rentals volumes and price movements are likely to remain strong

As of end October, both the private residential and HDB market has seen strong rental increases of approximately 8% compared year on year.

The situation is unlikely to abate with the following factors:

Local tenant demand rising – the new demand from Singaporeans who have chosen to ride on the bullish trends in the market to sell and bought into either new launches who have yet to complete or bought resale but finding it tough to complete renovations within their completion timeline.

With the above reasons, there is a new group of tenants which previously did not exist thus contributing to the demand.

Delay in the construction – This delay could be a double positive for the rental market .selling out earlier due to a positive sales market and the lack of new units to contribute to the rental inventory creates a short supply in 2022.

Resale units buying for own stay – Home buyers are unlikely to offer lease renewals to current tenants meaning the current foreign tenant pool may have to seek alternate accommodation plans amongst the limited inventory.

What it means to you:

If you are looking to lease, you need to be super active and for good units, be willing to accommodate the landlord’s conditions if its necessary. There is definitely competition for accommodation.

If you are a landlord, there is a chance that you can restart a new lease relationship or tenure, that you consider to lock in your rentals tenures for a longer lease if it suits both parties.

Lease options are available beyond HDB and private condos as well as there are selected government properties for residential rentals as well though there are some conditions to fulfill should you be on the lookout.

#5: Interest rates may increase in 2022. Remember to think further ahead before you sign a loan package.

The writing is on the wall on this one.

With higher inflation dominating 2021, the likelihood of interest rate increases in 2022 but its not all doom and gloom if you are clear on what is important to you.

What it means to you:

If you are somemore who is more keen on stability over volatility, perhaps a fixed rate package should be more favourable to you.

The flip side is if the interest rates rises do not pan out should there be other factors in the market that may hamper significantly an economy recovery, then you may already have locked in the rates whilst there could have been savings instead.

On the yield front, with rentals being stronger, that should help to mitigate any rate increases and landlords can rest a little easy on that in 2022.

#6: Enblocs should dominate the headlines in 2022…

Unless policy monsters enter the fray – which they did on 16 Dec 2021.

In 2021, approximately 2.5B worth of en-blocs were transacted and the excitement has come buzzing back into this investment segment of the market.

With multiple sites preparing to get to the 80% to endeavor them to launch for sale in the market, there is a silent optimism that more sites will get snapped up in 2022.

On top of market sentiments and overall economic outlook which drives the behavior in this segment, the “biggest bear” in this area is definitely policy changes.

Should there be any macro policy changes in regard to the timeline developers have to sell out the project, or changes to the rules in regard to stamp duties etc, I mean anything that creates a “wait and see” approach , then time will not be in the favour of the enbloc developments as it is very much a process that is running by the clock.

12 months to get 80% consensus, 12 months to get a buyer etc, 2 years before restarting , all that, means time waits for no man.

So any reason that may cause a hiatus of buying activity could result in a very different anticipated year for enbloc in 2022.

What does It mean to you:

If you are looking to buy something for enbloc, the nature of the success of such purchases are more often than not, an art and less of a science.

To gather the 80%, to agree on the method of apportionment, the balance of numbers versus the emotions involved, the social fabric of the neighborhood are just some of the unknowns if you are to enter.

Seller stamp duties are still applicable based on the 3 year time period from the date of purchase thus this is also important should you be considering to buy into one that promises you the road to the promised land.

If you are currently an owner in a development that is going through enbloc, do consider what it takes for you to maintain the property as it ages and also that additional buyer stamp duties may apply in your next purchase should you own more than 1 in your portfolio right now.


Above are my 6 market trends that I believe should dominate 2022.

But in the end, do remember that you do need to take your own needs, financial capability and goals into deeper consideration as well.

There are always hidden opportunity costs in the decisions you make – whether it is an active decision or a passive one.

If you have questions or wish to explore your options in the Singapore property market – I invite you to drop me (Harvey Chia) a message at 9199 9141 for a no-obligation discussion.


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