Want to buy a residential property in Singapore? Gear up for a price increase
Property experts believe that the private residential prices in Singapore are bound to increase up to 6% to 8%. In the second quarter of this year, the prices already rose by 3.5%.
“There was also a higher number of pricier transactions of at least S$2 million in Q2,” stated OrangeTee.
This increase was due to new more sales sold at a higher price compared to resale homes, as well as the strong demand from foreigners.
Read: Condo resale prices in Singapore increase by 9.4% in June
According to the Urban Redevelopment Authority (URA), foreign purchases increased by 3.9% YoY since the second quarter of 2021.
“The recent recovery in the primary and secondary residential property market is a result of the improvement in foreign buying behaviours and the positive sentiments surrounding new home sales and the resale market,” One Global Group shared.
Moreover, sales from major projects such as the Piccadilly Grand and LIV @ MB located in the Rest of Central Region (RCR) also affected the price increase.
Unlike RCR, the Outside Central Region (OCR) showed slower gains in the second quarter of 2022 as more people returned to the office.
PropertyGuru said that attention is likely to shift away from new launches in the OCR, and the buying preference for larger homes will endure and contribute to a lasting interest in OCR properties.
OrangeTee also added that macroeconomic influences are set to play a major role in property prices during the second half of 2022.
“Foreigners are continuing to buy homes in Singapore and will support prices in the Core Central Region and Rest of Central Region,” said Huttons, adding that Lentor Modern, Sky Eden @ Bedok, K Suites, Kovan Jewel, and The Arden will boost property prices in the third quarter of 2022.
