Your search results

Transaction Volumes Remained Subdued Due To The Dearth Of Inventory In Q4 2022

Posted by Jayson Ang on March 27, 2023

| 0

TLDR

The Urban Redevelopment Authority (URA) Flash Estimates for Q4 2022 show a 0.1% increase in non-landed private home prices quarter-on-quarter, with an impressive 8.0% rise year-on-year. The Core Central Region (CCR) saw a 0.5% price increase, while the Rest of Central Region (RCR) experienced a 2.6% boost. The Outside Central Region (OCR) had a notable 9.3% price growth. Despite challenges like revenge travel and reduced sales volume, the market outlook remains positive with upcoming new projects offering more options to buyers. Whether to buy, sell, or wait depends on individual circumstances, with strategic real estate advice and market knowledge essential for decision-making.

URA Flash Estimates

As we come two years post-pandemic, the Urban Redevelopment Authority (URA) estimates reveal a moderate 0.1% quarter-on-quarter price increase in non-landed private homes (excluding Executive Condominiums (ECs)), representing an impressive 8.0% year-on-year rise in 2022. This was largely due to robust sales of newly launched residences, primarily in suburban and fringe areas, that propelled prices to an all-time high of 18.6%.

The fourth quarter of 2022 brought a surge of revenge travel, as many potential homebuyers sought to make up for the international restrictions caused by COVID-19. Consequently, sales transactions of non-landed private homes dipped drastically, plummeting 48.3% quarter-on-quarter to just 2,884 units. With inventory in short supply, it seemed that many homebuyers chose to take a holiday before looking into prospective housing purchases.

In Q4 2022, developers released fewer new units as new sales volume contracted by a staggering 69.4%, with only 652 units sold. Meanwhile, secondary market sales declined 35.1%, registering 2,232 transactions. With an impending global recession and high interest rates, homebuyers opted to adopt a ‘wait-and-see’ attitude due to the lack of listings and the reduced transaction activities of non-landed homes.

Core Central Region (CCR)

In Q4 2022, prices of non-landed homes in the CCR rose 0.5% quarter-on-quarter and 4.6% year-on-year. Despite Singaporeans still representing the majority of non-landed homebuyers in the CCR, the share of foreign buyers increased from 8.9% in Q1 2022 to a noteworthy 15.8% in the last quarter of the year.

In spite of only a moderate rise in prices, sales in CCR experienced a sharp decrease of 33.8% quarter-on-quarter in Q4 2022*, with only 792 non-landed transactions. Newly contracted sales went down 33.0% quarter-on-quarter to 374, while resale volume experienced an even more dramatic fall of 34.5% to 418 during the same period.

Rest of Central Region (RCR)

In Q4 2022*, prices of non-landed homes in the RCR saw a noticeable boost of 2.6% quarter-on-quarter and 9.2% year-on-year, with the successful launch of properties like Piccadilly Grand and Liv @ MB throughout the year. However, overall transaction volume in the RCR decreased due to dwindling new sales, which sank 53.3% quarter-on-quarter to 170 transactions, and secondary market sales also plummeted 37.1% to 663 sales.

Outside Central Region (OCR)

The OCR shined brightest amongst all other market segments this year, boasting both impressive price growth and sales volume. Despite a slight dip in price index by 2.6% in the fourth quarter of 2022, the OCR still managed to close out the year with a notable 9.3% increase.

This remarkable price expansion throughout 2022 was driven by the strong demand for new launches in the first three quarters – until the interest rate surge pushed buyers onto the sidelines in the last quarter.

Q4 2022 was an incredibly challenging period for the OCR with new sales shrinking an incredible 91.1% quarter-on-quarter to just 108. With no new launches in the last three months of the year, overall sales were also hit hard, tumbling 57.5% to 1,259 transactions. Even secondary sales suffered a 34.2% drop, ending the quarter on 1,151 units.

Market Outlook

Despite an estimated 17,000+ new private homes slated for completion in 2023, the leasing market is unlikely to slow down due to the persistent demand in the private residential market. Moreover, those affected by the cooling measures who are forced to downscale their private home may put further pressure on the leasing market.

Homeowners have been reluctant to put their properties on the market with no new home to move into, even with price premiums being offered. Nonetheless, come 2023, 12,000 units in 34 new projects island-wide could offer some relief to the undersupplied housing situation, providing prospective buyers with an array of options in diverse locations.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

All Buying Tips

Why It’s Not Financially Sensible to Pay Off Your HDB Flat Home Loan in Advance

Jayson Ang – April 29, 2024 –

TLDR When deciding whether to repay your HDB flat loan early, consider the limitations of not being able to obtain...

All Blog Posts

SP Utilities Guide – Quick Guide To Setting Up Utilities In Singapore For Your New Home

Jayson Ang – April 16, 2023 –

TLDR Setting up utilities in Singapore for a new home is hassle-free. Contact SP Services for electricity and water accounts,...

Mandarin Top 5

Top 5 Factors Should Be Taken Into Consideration When Choosing The Right Neighborhood To Invest In Singapore’s Real Estate Market

Jayson Ang – January 10, 2025 –

Singapore's real estate market is known for its stability and potential for growth, making it an attractive investment destination for...

All Blog Posts Buying Tips Opinion Reports

What Difference in One Year After the ABSD Hike in April 2023?

Jayson Ang – December 7, 2024 –

TLDR The recent hike in ABSD rates, especially the increase from 30% to 60% for foreign buyers, has dramatically affected...

Mandarin Top 5

Top 5 Best Hidden Boutique Hotels in Singapore

Jayson Ang – October 11, 2024 –

Singapore, a vibrant city-state known for its iconic landmarks and diverse culture, offers a plethora of accommodation options for travelers....

All Blog Posts Buying Tips

What to Do Before Exercising Option to Purchase?

Jayson Ang – July 19, 2023 –

TLDR Home buyers are advised to thoroughly research property values using online tools, secure an ideal home loan package early...

All Buying Tips Opinion Selling Tips

Discover the Optimal Timing to Invest in Singapore Real Estate: Unveiling Historical Insights

Jayson Ang – August 1, 2024 –

TLDR When considering the best time to buy or sell a property in Singapore, historical data analysis reveals key insights....

All Blog Posts Buying Tips

Checklist for First-Time Homebuyers in Singapore: A Guide to Viewing Condos

Jayson Ang – May 4, 2023 –

TLDR The checklist provides essential steps for first-time homebuyers in Singapore to consider when viewing a condo. It includes aspects...

Buying Tips Mandarin Top 5

Don’t Get Scammed: The Top 5 Red Flags To Watch Out For In Singapore’s Property Market

Jayson Ang – July 14, 2023 –

Don't Get Scammed: The Top 5 Red Flags To Watch Out For In Singapore's Property Market When it comes to...

All Blog Posts Buying Tips

4 Simple Strategies to Help Future Homeowners Save Money

Jayson Ang – July 15, 2023 –

TLDR When it comes to being a new homeowner, it's essential to prioritize regular maintenance to avoid costly repairs down...

Mandarin Top 5

Top 5 Singaporean Dishes to Try

Jayson Ang – July 30, 2024 –

Singapore, a melting pot of diverse cultures and flavors, is known for its rich culinary heritage. With influences from Chinese,...

Mandarin Top 5

Top 5 Places to Learn About Singapore’s Diversity

Jayson Ang – August 31, 2024 –

Singapore, a vibrant city-state in Southeast Asia, is well-known for its diverse culture and rich history. A melting pot of...

Mandarin Top 5

Top 5 Things to Do in Singapore on a Rainy Day

Jayson Ang – March 24, 2024 –

Singapore, the beautiful island city-state, is known for its sunny weather and stunning attractions. However, even in this tropical paradise,...

All Buying Tips Opinion

Beyond Buying: Innovative Strategies for Property Investment Success

Jayson Ang – September 14, 2024 –

TLDR The world of property investment and real estate trends offers vast opportunities. Stay informed with effective property investment strategies...

All Opinion

Singapore’s Property Market: Will the Newly Proposed 2023 Cooling Measures, Including a 60% Foreigner ABSD, Make Waves or Mere Ripples?

Jayson Ang – April 27, 2023 –

TLDR The recent surge in Additional Buyer's Stamp Duty (ABSD) rates in Singapore targets mainly foreigners and entities, with rates...

All Opinion

Why Aren’t Spacious, Wallet-Friendly Homes Our Reality Yet?

Jayson Ang – April 17, 2024 –

TLDR The article discusses the current housing market in Singapore, focusing on the challenges faced by individuals like Sherlyn Tan...

Mandarin Top 5

Top 5 Places to Try Durian in Singapore

Jayson Ang – May 28, 2024 –

Durian, often referred to as the "King of Fruits," is a unique and polarizing delicacy in Southeast Asia. With its...

All Buying Tips Opinion

I Regret Buying A DBSS: 5 Homeowners Share Their Biggest Regrets

Jayson Ang – January 16, 2024 –

TLDR Singapore's DBSS scheme faced challenges such as design flaws, developer responsiveness issues, and restrictions on selling. Residents reported various...