Growth drivers for private home prices revealed
According to PropertyGuru, the two factors that drove the increase in private home prices in the first quarter of 2023 include sustained price growth in the Outside Central Region and moderate price growth in the Rest of Central Region and Core Central Region for non-landed properties.
Mre from OMY: Singapore private home prices increase 0.4% in Q422 despite lower sales
According to Property Guru, prices in the OCR increased by 1.9% in 1Q23. The price increase can be attributed to major launches such as the Seneca Residence which sold 60% of its units, as well as The Botany at Dairy Farm which sold 48% of its units.
“The sustained growth in HDB resale prices likely motivated those who have recently fulfilled their Minimum Occupation Period (MOP) to put their HDB flats for sale. Flush with cash, these HDB upgraders turned their attention towards new launches in the OCR, which hit a sweet spot between price and size,” according to PropertyGuru.
Meanwhile, prices in RCR and CCR increased a whopping 4.4% and 0.8%, respectively.
“The modest price growth in the RCR and CCR endures in the face of an uncertain macroeconomic outlook. Locals and foreign investors continue to seek safe havens to park their wealth, which is driving price growth in the current challenging climate. Uncertainty in equity markets has motivated investors to reroute funds from buying stocks to real estate, especially amid record-high rental prices.”
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