2021 Year-End Review Of The Singapore Property Market: Key Numbers And Trends

2021 has been an intense year. It's the first full year of dealing with the pandemic, and it's crazy to think how we've been living with Covid-19 for nearly two years already. There's great hope that 2022 will see some sense of normalcy return to our lives, as we continue to adjust to the new normal of living.

Lots have happened on the property front too. The year kicked off with the launch of Normanton Park, which has gone on to sell more than 3/4 of its 1,862 units over the course of 2021 - a quite stunning result. Most launches since have done well given the buoyancy of the market, with notable ones like Jervois Mansion selling 98 per cent on launch day, CanningHill Piers moving 77 per cent, and Pasir Ris 8 registering 85 per cent.

Resale HDB prices unsurprisingly was a hot topic throughout the year, as a result of BTO delays and the pandemic conditions driving up the demand. Paying for COV has made an unwelcome comeback in 2021, and the combinations of the seemingly insatiable demand from private, HDB, and landed buyers have led to the recent long-awaited cooling measures to quell the market.

Here’s a year-end look at where the overall market stands at the end of 2021:

* Do note that the numbers derived in this year-end review are from URA Realis as of 31 Dec 2021. The final numbers could change from the official figures when released at end of January 2022 - but it isn't going to deviate significantly to alter any conclusions here.

Non-landed private properties

The total transaction volumes for private non-landed properties (excluding ECs) amounted to 28,734 for the whole of 2021 (based on information available as of to 31 December 2021). This is quite a large 57 per cent increase from 2020, when total transaction volume came to 18,295 units (probably hence the cooling measures).

Of the total transactions, 12,574 were new launch properties, while 15,677 were resale properties. Compared to 2020, this is a 34 per cent increase for new launch sales and a 79 per cent increase for resale units. It is quite a remarkable increase - and perhaps goes to show how resale demand has really been impacted by construction delays from the pandemic as well as the attraction of bigger living spaces at home.

In the Core Central Region (CCR), sales volumes jumped about 84.5 per cent over the year, from 3,008 to 5,549 units.

In the Rest of Central Region (RCR), sales volumes rose around 54 per cent, from 6,531 to 10,058 units.

In the Outside of Central Region (OCR), sales volumes rose around 49.9 per cent, from 8,756 to 13,127 units. 

Price movement for non-landed private properties (Excluding ECs)

Region	Sales volume (2020)	Price psf (2020)	Sales volume (2021)	Price psf (2021)	Approx. gain / loss
Singapore	18,295	$1,552	28,734	$1,615	+4.06%
CCR	3,008	$2,209	5,549	$2,372	+7.38%
RCR	6,531	$1,699	10,058	$1,775	+4.47%
OCR	8,756	$1,327	13,127	$1,330	+0.23%

All new launch developments throughout 2021

The following is based on URA November Developer Sales data added with transactions from December 2021. For the most current details on pricing, take-up rates, etc. do drop us a query.

New Launches In 2021 (Non-Landed Excluding ECs)	Total Number of Units in Project	Cumulative Units Sold to-date	Lowest $PSF in 2021	Highest $PSF in 2021	Median $PSF in 2021	Take-Up Rate
AMBER SEA	132	0	-	-	-	0.00%
CAIRNHILL 16	39	0	-	-	-	0.00%
JERVOIS PRIVE	43	1	-	-	-	0.02%
SUNSTONE HILL	28	0	-	-	-	0.00%
GEMS VILLE	24	0	-	-	-	0.00%
IKIGAI	16	0	-	-	-	0.00%
LIV @ MB	298	0	-	-	-	0.00%
MATTAR RESIDENCES	26	0	-	-	-	0.00%
RESIDENTIAL APARTMENTS	75	0	-	-	-	0.00%
ROYAL HALLMARK	32	0	-	-	-	0.00%
SOPHIA REGENCY	38	0	-	-	-	0.00%
ZYANYA	34	0	-	-	-	0.00%
BELGRAVIA ACE	107	0	-	-	-	0.00%
KLIMT CAIRNHILL	138	3	$3,818	$5,309	$4,010	2.17%
19 NASSIM	101	4	$3,510	$3,751	$3,631	3.96%
PERFECT TEN	230	10	$3,118	$3,504	$3,241	4.35%
CUSCADEN RESERVE	192	9	$3,807	$3,826	$3,816	4.69%
JERVOIS TREASURES	36	2	$2,271	$2,271	$2,271	5.56%
THE ATELIER	120	9	$2,530	$3,040	$2,706	7.50%
10 EVELYN	56	6	$2,429	$2,429	$2,349	10.71%
PEAK RESIDENCE	90	10	$2,344	$2,846	$2,515	11.11%
ONE DRAYCOTT	64	8	$3,090	$3,365	$3,108	12.50%
GRANGE 1866	60	8	$2,674	$2,794	$2,729	13.33%
RYMDEN 77	31	5	$1,538	$1,787	$1,745	16.13%
PARKSUITES	119	24	$2,091	$2,091	$2,091	20.17%
THE GAZANIA	250	54	$1,879	$2,346	$2,074	21.60%
PETIT JERVOIS	55	12	$2,732	$2,944	$2,863	21.82%
DALVEY HAUS	17	4	$2,960	$3,201	$3,080	23.53%
THE LILIUM	80	20	$1,800	$2,270	$2,063	25.00%
BARTLEY VUE	115	29	$1,741	$2,021	$1,922	25.22%
ONE BERNAM	351	89	$2,223	$2,955	$2,475	25.36%
HAUS ON HANDY	188	49	$2,610	$2,710	$2,661	26.06%
PARKWOOD RESIDENCES	18	5	$1,290	$1,533	$1,503	27.78%
LES MAISONS NASSIM	14	4	$5,672	$6,210	$5,930	28.57%
VAN HOLLAND	69	22	$2,570	$3,090	$2,931	31.88%
JUNIPER HILL	115	37	$2,391	$2,926	$2,718	32.17%
PHOENIX RESIDENCES	74	24	$1,454	$1,548	$1,494	32.43%
PULLMAN RESIDENCES NEWTON	340	111	$2,512	$3,491	$2,828	32.65%
MIDTOWN BAY	219	74	$2,619	$3,261	$2,997	33.79%
SLOANE RESIDENCES	52	18	$2,718	$3,366	$2,889	34.62%
HYLL ON HOLLAND	319	111	$2,242	$2,699	$2,406	34.80%
THE LANDMARK	396	144	$1,946	$2,498	$2,203	36.36%
M SUITES	16	6	$1,603	$1,700	$1,650	37.50%
MYRA	85	32	$2,064	$2,299	$2,144	37.65%
MOOI RESIDENCES	24	10	$2,339	$2,547	$2,369	41.67%
THE HYDE	117	50	$2,723	$3,325	$2,868	42.74%
RIVIERE	455	197	$2,307	$3,060	$2,644	43.30%
MEYER MANSION	200	87	$2,403	$3,293	$2,613	43.50%
WILSHIRE RESIDENCES	85	40	$2,175	$2,717	$2,451	47.06%
LA MARIPOSA	17	8	$1,699	$1,774	$1,726	47.06%
LEEDON GREEN	638	313	$2,318	$3,017	$2,677	49.06%
VERTICUS	162	80	$1,856	$2,333	$2,067	49.38%
BOTANIC @ CLUNY PARK	6	3	No Data	No Data	No Data	50.00%
MORI	137	70	$1,619	$2,106	$1,864	51.09%
ONE HOLLAND VILLAGE RESIDENCES	296	154	$2,317	$3,069	$2,760	52.03%
THE AVENIR	376	199	$2,734	$3,443	$3,150	52.93%
35 GILSTEAD	70	39	$2,450	$2,682	$2,545	55.71%
THE IVERIA	51	29	$2,507	$2,751	$2,617	56.86%
URBAN TREASURES	237	135	$1,816	$2,109	$1,878	56.96%
MEYERHOUSE	56	32	$2,379	$2,800	$2,541	57.14%
15 HOLLAND HILL	57	33	$2,814	$3,496	$3,002	57.89%
PARKWOOD COLLECTION	53	31	$659	$826	$778	58.49%
PARK NOVA	54	33	$4,540	$5,838	$4,843	61.11%
KOPAR AT NEWTON	378	231	$2,118	$2,651	$2,380	61.11%
ROYALGREEN	285	178	$2,511	$2,900	$2,740	62.46%
77 @ EAST COAST	41	26	$1,638	$1,892	$1,747	63.41%
ONE PEARL BANK	774	523	$2,057	$2,816	$2,484	67.57%
1953	58	41	$1,752	$1,956	$1,933	70.69%
VERDALE	258	185	$1,637	$1,897	$1,775	71.71%
MIDTOWN MODERN	558	403	$2,299	$4,213	$2,703	72.22%
THE WATERGARDENS AT CANBERRA	448	328	$1,232	$1,579	$1,469	73.21%
FYVE DERBYSHIRE	71	53	$2,247	$2,441	$2,350	74.65%
IRWELL HILL RESIDENCES	540	408	$2,460	$4,123	$2,651	75.56%
THE COMMODORE	219	169	$1,289	$1,670	$1,511	77.17%
JERVOIS MANSION	130	102	$2,171	$2,916	$2,552	78.46%
KI RESIDENCES AT BROOKVALE	660	518	$1,594	$2,097	$1,815	78.48%
ONE MEYER	66	52	$2,438	$2,688	$2,539	78.79%
NORMANTON PARK	1862	1476	$1,455	$2,024	$1,792	79.27%
DAIRY FARM RESIDENCES	460	365	$1,359	$1,759	$1,617	79.35%
MAYFAIR MODERN	171	139	$1,795	$2,306	$2,081	81.29%
FOURTH AVENUE RESIDENCES	476	388	$2,103	$2,701	$2,410	81.51%
FORETT AT BUKIT TIMAH	633	516	$1,685	$2,321	$2,026	81.52%
BOULEVARD 88	154	126	$3,575	$4,022	$3,738	81.82%
SERAYA RESIDENCES	17	14	$1,532	$1,532	$1,552	82.35%
INFINI AT EAST COAST	36	30	$1,626	$2,134	$1,892	83.33%
CANNINGHILL PIERS	696	584	$2,541	$5,360	$2,886	83.91%
8 HULLET	44	37	$3,671	$3,671	$3,671	84.09%
AMBER PARK	592	500	$2,226	$2,960	$2,449	84.46%
AVENUE SOUTH RESIDENCE	1074	910	$1,801	$2,556	$2,227	84.73%
PARC KOMO	276	236	$1,459	$1,799	$1,557	85.51%
MIDWOOD	564	486	$1,552	$1,925	$1,671	86.17%
THE WOODLEIGH RESIDENCES	667	580	$1,958	$2,468	$2,150	86.96%
NYON	92	80	$1,915	$2,721	$2,337	86.96%
NEU AT NOVENA	87	76	$2,379	$2,711	$2,546	87.36%
PASIR RIS 8	487	429	$1,411	$2,092	$1,627	88.09%
DUNEARN 386	35	31	$2,101	$2,608	$2,285	88.57%
THE FLORENCE RESIDENCES	1410	1253	$1,355	$1,947	$1,682	88.87%
THE REEF AT KING'S DOCK	429	382	$1,995	$2,831	$2,277	89.04%
THE M	522	467	$2,295	$3,035	$2,694	89.46%
RESIDENCE TWENTY-TWO	22	20	$1,716	$1,880	$1,777	90.91%
MAYFAIR GARDENS	215	196	$1,754	$2,212	$2,021	91.16%
KENT RIDGE HILL RESIDENCES	548	502	$1,362	$2,077	$1,786	91.61%
PENROSE	566	522	$1,553	$1,802	$1,674	92.23%
TEDGE	42	39	$1,544	$1,762	$1,623	92.86%
SENGKANG GRAND RESIDENCES	680	637	$1,594	$1,915	$1,713	93.68%
LATTICE ONE	48	45	$1,626	$1,946	$1,846	93.75%
3 CUSCADEN	96	90	$3,686	$4,227	$4,199	93.75%
SKY EVERTON	262	246	$2,634	$2,895	$2,778	93.89%
THE JOVELL	428	406	$1,121	$1,581	$1,332	94.86%
CLAVON	640	608	$1,489	$1,822	$1,633	95.00%
PARC CLEMATIS	1468	1397	$1,076	$2,076	$1,693	95.16%
UPTOWN @ FARRER	116	111	$1,619	$2,144	$1,896	95.69%
COASTLINE RESIDENCES	144	138	$2,253	$3,119	$2,454	95.83%
AFFINITY AT SERANGOON	1052	1013	$1,096	$1,794	$1,548	96.29%
MONT BOTANIK RESIDENCE	108	104	$1,552	$1,899	$1,739	96.30%
CASA AL MARE	49	48	$1,540	$1,716	$1,607	97.96%
ONE-NORTH EDEN	165	162	$1,779	$2,257	$1,986	98.18%
JADESCAPE	1206	1190	$1,552	$1,966	$1,779	98.67%
WATERCOVE	80	79	No Data	No Data	No Data	98.75%
RIVERFRONT RESIDENCES	1472	1454	$1,094	$1,527	$1,362	98.78%
REZI 24	110	109	$1,527	$1,688	$1,572	99.09%
TREASURE AT TAMPINES	2203	2187	$1,189	$1,826	$1,403	99.27%
PARK COLONIAL	805	800	$1,665	$2,148	$1,916	99.38%
THE ANTARES	265	264	$1,515	$1,955	$1,817	99.62%
STIRLING RESIDENCES	1259	1257	$1,619	$2,511	$2,148	99.84%
PARC ESTA	1399	1399	$1,616	$2,050	$1,743	100.00%
J@63	14	14	$1,332	$1,758	$1,570	100.00%
NOMA	50	50	$1,478	$1,668	$1,628	100.00%
DAINTREE RESIDENCE	327	327	$1,517	$1,903	$1,718	100.00%
JUI RESIDENCES	117	117	$1,805	$1,966	$1,889	100.00%
MARTIN MODERN	450	450	$2,307	$3,335	$2,768	100.00%
OLLOI	34	34	$1,472	$1,799	$1,757	100.00%
THE ESSENCE	84	84	$1,078	$1,488	$1,390	100.00%
TWIN VEW	520	520	$1,357	$1,582	$1,508	100.00%
VIEW AT KISMIS	186	186	$1,609	$1,815	$1,724	100.00%
WHISTLER GRAND	716	716	$1,277	$1,809	$1,609	100.00%

Top 5 selling developments in 2021

Top 5 Selling Developments	No. of Units
Normanton Park	1,473
Parc Central Residences	693
CanningHill Piers	582
Treasure at Tampines	564
Parc Greenwich	432

Best selling CCR new launch

Project	No. of Units Sold 2021	Median Price (2021 $PSF)	Median Price (2021)	Tenure
Irwell Hill Residences	408	$2,651	$1,686,000	99-year
Midtown Modern	403	$2,703	$1,704,780	99-year
Leedon Green	225	$2,677	$1,998,000	Freehold
Fourth Avenue Residences	180	$2,410	$1,685,770	99-year
The Avenir	145	$3,150	$4,437,000	Freehold

Best selling RCR new launch

Project	No. of Units Sold 2021	Median Price (2021 $PSF)	Median Price (2021)	Tenure
Normanton Park	1473	$1,792	$1,223,473	99-year
CanningHill Piers	582	$2,886	$1,613,000	99-year
The Reef At King's Dock	382	$2,277	$1,623,390	99-year
Avenue South Residence	302	$2,227	$1,709,000	99-year
Amber Park	264	$2,449	$1,825,800	Freehold

Best selling OCR new launch

Project	No. of Units Sold 2021	Median Price (2021 $PSF)	Median Price (2021)	Tenure
Parc Central Residences	693	$1,175	$1,238,000	99-year
Treasure At Tampines	564	$1,403	$1,490,500	99-year
Parc Greenwich	432	$1,233	$1,305,000	99-year
Pasir Ris 8	429	$1,627	$1,266,000	99-year
Midwood	402	$1,671	$1,163,000	99-year

Top 5 non-landed private properties for resale gains in 2021

Project Name	Sell Date	Price	Quantum Gains	% Gains	Holding Period (Years)
Lien Towers	25/6/21	$8,400,000	$6,350,000	310%	19.9
Lakeside Apartments	18/5/21	$1,222,500	$922,500	308%	15.2
N.A.	6/9/21	$2,370,000	$1,780,000	302%	22.3
N.A.	19/4/21	$1,338,000	$998,000	294%	19.9
Willyn Ville	1/9/21	$3,000,000	$2,235,000	292%	16

Bottom 5 private properties for resale gains in 2021

Project Name	Sell Date	Price	Quantum Loss	% Loss	Holding Period (Years)
Bedok Shopping Complex	19/10/21	$340,000	-$440,000	-56%	8.7
The Azure	29/3/21	$3,600,000	-$3,600,000	-50%	13.4
Turquoise	14/5/21	$4,702,500	-$4,429,575	-49%	13.5
Orchard Scotts	5/7/21	$3,230,000	-$2,241,200	-41%	10.3
St Regis Residences	5/1/21	$8,000,000	-$3,200,000	-40%	13

Rental market for private non-landed properties 

Island-wide, leasing volumes fell by about 2.8 per cent, from 86,567 in 2020, to 84,125 in 2021.

In the CCR, leasing volume registered a slight increase of 2.75 per cent, from 25,041 to 25,730.

In the RCR, leasing volume fell around 4.77 per cent, from 29,093 to 27,706.

In the OCR, leasing volume fell around 5.38 per cent, from 32,433 to 30,689.

Market Segment	2020	2021	Change
Core Central Region	25,041	25,730	+2.75%
Outside Central Region	32,433	30,689	-5.38%
Rest of Central Region	29,093	27,706	-4.77%
Total	86,567	84,125	-2.82%

Market Segment	2020	2021	Change
Core Central Region	$3.98	$4.13	+3.77%
Outside Central Region	$2.74	$2.93	+6.93%
Rest of Central Region	$3.43	$3.57	+4.08%
Total	$3.27	$3.48	+6.42%

Rental rates are on an uptrend for all regions in Singapore, with the biggest change from the OCR with a 6.9 per cent increase in 2021.

Top 5 developments for rental yield in 2021:

Project	Tenure	Average Rent ($PSF PM)	Leasing Volume	Rental Yield (%)
The Hillford	60 years from 2013	4.74	113	4.8
Central Imperial	Freehold	3.99	38	4.6
Newest	956 years from 1928	3.7	60	4.6
Treasures @ G20	Freehold	3.79	19	4.5
City Suites	Freehold	4.38	39	4.4
Pavilion Square	Freehold	4.98	30	4.4

Bottom 5 developments for rental yield in 2021:

Project	Tenure	Average Rent ($PSF PM)	Leasing Volume	Rental Yield (%)
Botanic Gardens View	Freehold	2.59	35	1.3
Ardmore Park	Freehold	4.74	103	1.6
Kim Sia Court	Freehold	2.69	72	1.6
The Lumos	Freehold	3.03	25	1.6
Four Seasons Park	Freehold	4	53	1.6

HDB resale market 

The total number of resale flat transactions rose by about 24.3 per cent in 2021. Total resale transactions numbered 28,993 units, up from 23,333 units last year. Do note that the numbers are likely higher as not all transactions in 2021 have been officially recorded.

The number of 2-room flat transactions decreased from 418 to 386 in 2021, down 7.66 per cent.

3-room flat transactions increased from 5,384 units to 6,250 units, a 16.1 per cent increase, while 4-room flat transactions rose from 9,647 units to 12,306 units; up around 27.6 per cent. 

5-room flat transactions rose from 5,984 units to 7,774 units, up 29.9 per cent, while Executive flat transactions rose from 1,882 units to 2,250 units, up 19.6 per cent. 

Lastly, there were 18 recorded transactions for 3Gen flats in 2021, a 125 per cent increase from 8 transactions the year before. 

Flat size	Transaction volume (2020)	Price psf (2020)	Transaction volume (2021)	Price psf (2021)	Approx. gain / loss
All flats	23,333	$434	28,993	$488	+12.4%
1-room	10	$539	9	$591	+9.6%
2-room	418	$471	386	$536	+13.9%
3-room	5,384	$428	6,250	$482	+12.7%
4-room	9,647	$443	12,306	$499	+12.8%
5-room	5,984	$430	7,774	$480	+11.7%
Executive	1,882	$407	2,250	$453	+11.2%
3Gen	18	$449	18	$491	+9.3%

As you may very well know by now, other than volume, prices have increased across the board, with each category registering at least a 2 digit percentage increase with the exception of 1-room and 3Gen HDB flats.

All BTO launch sites of 2021

Town	BTO Name	Launch Date	Est. Completion	Units
Toa Payoh	Alkaff Breeze	04 Feb 2021	2Q 2024	353
Toa Payoh	Bartley GreenRise	04 Feb 2021	2Q 2025	387
Toa Payoh	ParkEdge @ Bidadari	04 Feb 2021	1Q 2025	476
Bukit Batok	Harmony Village @ Bukit Batok	04 Feb 2021	2Q 2024	169
Bukit Batok	West Hill @ Bukit Batok	04 Feb 2021	2Q 2026	962
Bukit Merah	Telok Blangah Beacon	25 May 2021	1Q 2027	175
Central	River Peaks I & II	17 Nov 2021	2Q 2028	960
Choa Chu Kang	Heart of Yew Tee	17 Nov 2021	3Q 2026	68
Geylang	MacPherson Weave	25 May 2021	1Q 2026	1382
Hougang	Hougang Citrine	11 Aug 2021	1Q 2025	749
Hougang	Hougang Olive	17 Nov 2021	1Q 2025	390
Hougang	Kovan Wellspring	11 Aug 2021	3Q 2026	586
Hougang	Tanjong Tree Residences @ Hougang	17 Nov 2021	2Q 2026	300
Jurong East	Toh Guan Grove	11 Aug 2021	1Q 2026	569
Jurong West	Nanyang Opal	17 Nov 2021	4Q 2025	221
Kallang/Whampoa	Kent Heights	17 Nov 2021	4Q 2026	430
Kallang/Whampoa	McNair Heights	04 Feb 2021	2Q 2026	626
Kallang/Whampoa	Towner Residences	11 Aug 2021	4Q 2026	316
Queenstown	Queen’s Arc	11 Aug 2021	3Q 2027	610
Tampines	Tampines GreenJade	11 Aug 2021	3Q 2025	546
Tampines	Tampines GreenQuartz	11 Aug 2021	2Q 2026	1613
Tengah	Garden Bloom @ Tengah	25 May 2021	3Q 2025	782
Tengah	Parc Clover @ Tengah	17 Nov 2021	4Q 2024	1124
Tengah	Parc Glen @ Tengah	17 Nov 2021	4Q 2024	1008
Tengah	Parc Woods @ Tengah	04 Feb 2021	1Q 2025	767
Woodlands	Woodgrove Ascent	25 May 2021	3Q 2025	1540

Executive Condominium (EC) launches in 2021

EC New Launches In 2021	Units	Units Sold to-date	Lowest $PSF in 2021	Highest $PSF in 2021	Median $PSF in 2021	Take-Up Rate
Provence Residence	413	355	$1,004	$1,304	$1,158	85.96%
Parc Greenwich	496	435	$1,029	$1,379	$1,233	87.70%
Ola	548	530	$1,013	$1,357	$1,148	96.72%
Parc Central Residences	700	695	$1,002	$1,286	$1,175	99.29%

Policy measures/changes in 2021

• 16 Dec new property cooling measures
• 10-year MOP for prime region HDB flats

1. 16 Dec new property cooling measures

The full details of this can be found in our earlier article.

Unless you've been living under a rock for the past month, you'd probably have heard of the new property cooling measures that were just recently announced.

Here's a brief recap:

Cooling Measure	Old Measure	16 December 2021 New Measure
Loan To Value Ratio	90% for HDB loans 75% for bank loans	85% for HDB loans 75% for bank loans
Total Debt Servicing Ratio	60% of monthly income	55% of monthly income
Additional Buyers Stamp Duty	Singapore Citizens None for first property 12% on second property 15% on subsequent property Permanent Residents 5% on first property 15% on subsequent property Foreigners 20%  Entities 25% +5% non-remissible for property developers	Singapore Citizens None for first property 17% on second property 25% on subsequent property Permanent Residents 5% on first property 25% on second property 30% on subsequent property Foreigners 30%  Entities 35% +5% non-remissible for property developers

In all honesty, this has been a long time coming. We've even talked about it as early as Jan 2021 (it was on 18 Jan DPM Heng Swee Keat said the government is paying close attention to the property market). So if anything, it has been surprising that these measures have taken as long as they have to be executed.

2. 10-year MOP for prime region HDB flats

This was a point of contention for a long time coming as well, with much discussion happening online in Dec 2020.

So this new PLH model comes after 10 months of public engagement from Nov 2020 to Sep 2021. There were more than 7,500 Singaporeans consulted for feedback, including first-time homebuyers, existing homeowners, industry experts, and academics.

The new PLH model imposes some additional restrictions, on HDB flats bought in prime areas:

• 10-year MOP instead of five years
• No renting out the whole flat 
• Subsidy Recovery, on top of existing resale levy
• Tighter eligibility requirements
• Reduced number of flats set aside for MCPS

It's still up in the air how this new ruling may affect HDB prices down the road. But for now, the common consensus is that HDB flats on the edge of the prime areas will benefit most from the new ruling. HDB has clarified that there will be no retroactive application of PLH model rules, on flats already in prime areas. Existing resale flats in prime areas will not suddenly have 10-year MOPs or income ceilings, so again, owners in these areas will stand to gain the most.

Notable trends that emerged in 2021

• Condolidation of agencies
• Super prime real estate
• OCR condos dominating
• Trend of larger homes 

1. Consolidation of agencies 

With the recent exodus from Orange Tee and Tie (OTT) toward other real estate agencies, there’s a real possibility that the “big four” will soon become the “big three”. Singapore’s real estate firms now resemble an oligopoly, with possibly just three “power players” dominating the market.

While most consumers may not think much of it, there may be further knock-on implications that could indirectly affect the market. With rising land costs, an increase in ABSD, and development charges, property developer margins are getting slimmer by the day. Couple that with the increase in the influence of the big property agencies, and you have a somewhat unhealthy situation in that developers absolutely need the agencies to market their units. They don’t have the database of potential buyers, or the sheer numbers required to push their projects. 

The combination of factors here could result in preventing further innovation as well as a negative impact on a push for better service levels among agents.

2. Super prime real estate

We've yet to see the final numbers yet, but so far Good Class Bungalow (GCB) transactions have totalled close to 90 as of end-2021. This has way surpassed 2020's number of 44 transactions, with notable high-profile deals such as Secretlab CEO’s purchasing of 27 Olive Road for $36m and the spouse of Grab’s founder transaction of 55 Bin Tong Park for $40m. The biggest deal of the year so far still goes to the wife of Nanofilm’s founder, who bought 30 Nassim Road for a jaw-dropping $128.8m.

It's not just about landed properties either, ultra-luxury condominiums have been hitting the headlines in 2021 as well. One of the early highlights was the deal for Eden at 2 Draycott Park, where the entire development was bought for $293.m, or $4,827 psf by the Tsai family of Taiwan. In late October, the penthouse unit at the ultra-luxury Les Maisons Nassim was sold for $75 million or $6,210 psf which is stratospheric for a condo unit. Mind you, this isn't like the Wallich Residence super penthouse (which is the highest possible point to live at in Singapore), so this deal will take some beating to top. The most recent high-end deal was for the 8,956 sq ft super penthouse at CanningHill Piers, this went for $48 million, or $5,360 psf.

The reasons for the popularity of super-prime real estate in Singapore are somewhat similar to the overall surge in landed homes. But to conclude, note that the last peak for GCBs was in 2010, as recovery from the ‘08/09 financial crisis settled in. We’ve seen that investors like to consider Singapore real estate – especially freehold landed homes – as a safe haven in volatile times. With the supply of GCBs limited to just the 39 areas in Singapore, there’s seemingly little supply to meet the demand of such luxurious landed living in Singapore. The same goes for the ultra-luxury penthouses - given there's only one in each development, the size and exclusivity are always going to be a major draw for the ultra-wealthy foreigners.

3. OCR condos dominating

As with the numbers reported at the year-end, OCR condos have represented the largest price increase from 2020.

The biggest demographic of home buyers right now are HDB upgraders. For these buyers, the right price tends to be a quantum of between $1.2 million to $1.5 million. In most cases, this comes down to financing. The difficulty lies in the cash portion of the down payment.

The first five per cent of the new home must be paid in hard cash; for most upgraders, this will be roughly between $60,000 to $75,000. In our experience, most upgraders can barely cover this, after selling a 4-room flat and refunding their CPF.

Given that the average family unit in the RCR approaches $1.8 million, this restricts most upgraders – and hence the bulk of buyers in general – to OCR condos. 

4. Trend of larger homes

If we were to just go by the trends from our most-read list of 2021, it would be a cinch to pick out that homebuyers are gravitating towards larger homes. Notable pieces include the ultimate list of Executive Maisonette and jumbo flats, touring one of the cheapest freehold landed estates, and a list of older, freehold condos as well.

Because of the pandemic, many people have now realised the importance of space, and are more willing to pay the premium purely because of the amount of time now spent at home. While work from home isn't yet a permanent fixture, it will increasingly become a reality (or at least, a hybrid arrangement for many). Despite the measures relaxing from Jan 1, 2022 (50% of the workforce will now be allowed to go back to the office), it is likely that this trend may yet still persist in 2022.

Overall, the property market has definitely been a good year for sellers, not so much for buyers

The announcement of the new cooling measures will certainly have an effect on the market, and we expect the start of 2022 to start a little slowly. The foreigner ABSD increase is undoubtedly a big jump and will be a cause for concern for many of the higher-end launches in Singapore, just as some momentum seemed to be picking up for the CCR launches. A trickle of discounts has already started since the announcement, and we do think that there could be more coming, given that some will be facing ABSD deadlines in 2023.

To wrap up, there's no question that the pandemic has and will create lasting changes, not just in the property market, but beyond. 2022 will be a year when many of us finally settle into a post-pandemic new normal, and hopefully, we can see light at the end of the tunnel.

For more updates on the property market and development reviews, follow us on Stacked. We’ll keep you up to date as the changes happen.

And from the team at Stacked, enjoy the holidays and have a Happy New Year!