2022 Year-End Review Of The Singapore Property Market: Key Numbers And Trends You Need To Know

At the end of 2021, we expressed hopes that 2022 would see a return to normalcy. We shouldn’t have done that, because we jinxed it. 2022 ended up being even more volatile than the previous year, as we move from a pandemic into a new European war, and make a rapid transition into a higher-interest economy. 

Due to runaway inflation in the United States, the Fed has hiked interest rates at an unprecedented pace. This has had a knock-on effect on private bank loans in Singapore: The 3M SORA rate in 1Q 2023 is expected to reach 3.3 to 3.5 per cent, significantly higher than the two per cent average we’ve known over the past decade. 

We need to bear this in mind as we examine the property market numbers for 2022, as the higher rates could result in unpredictable shifts. We don’t yet know, for instance, if a high-interest rate is sufficient to deter property investors and drive prices down; not when there is an equally strong desire for safe-haven assets, due to the Russia-Ukraine war. 

For now, we’d avoid making any assumptions that the patterns we see here will continue into 2023; things are at a tipping point at the moment. 

*The following is accurate as of 31^st December 2022, but note that some numbers may show slight deviations when final tabulations are reported in January 2023. 

Transaction volumes 

New sale transactions were down significantly from 2021, with just 6,783 recorded transactions. This is around a 46 per cent drop from the 12,535 transactions in 2021. 

This was expected though; it was already reported in end-2021 that we would see fewer new launches. Another factor is that the 1,000+ unit mega-developments of Treasure at Tampines, Normanton Park, etc. has sold off the last of their inventory. In 2022, there were no new launches of equally significant size. 

Resale transactions are also dipping, falling to 11,678 units. This is around a 29 per cent decrease from 16,380 units the previous year. This is likely due to a pair of recent cooling measures (along with rising interest rates), which came quite close to each other – in December 2021 and September 2022. 

Reductions in Total Debt Servicing Ratio (TDSR) limits, along with a higher interest rate floor, may have put some buyers in a wait-and-see mood. 

Regional breakdown 

The CCR had the best showing in terms of transaction volume. 3,493 transactions were recorded, down around 30.5 per cent from 5,675 units the previous year. 

The OCR had the next best showing, with transactions at 8,801 units. This was down around 34 per cent from 13,517 units the previous year. 

The RCR saw the steepest drop in transaction volume, with just 6,367 transactions. This was down almost 38 per cent from 10,247 units the previous year. 

Price movement for non-landed private homes (excluding ECs)

Prices have continued to rise, despite the two recent cooling measures and falling transactions. 

The median price in 2022 stood at $1,727 psf, up 7.4 per cent from $1,608 the previous year.

Region	Sales volume (2021)	Price psf (2021)	Sales volume (2022)	Price psf (2022)	Approx. gain / loss
Singapore	29,438	$1,608	19,111	$1,727	+7.4%
CCR	5,674	$2,360	3,943	$2,508	+6.2%
RCR	10,247	$1,771	6,367	$1,859	+4.9%
OCR	13,517	$1,322	13,517	$1,394	+5.4%

All new launch developments throughout 2022

The following is based on URA November Developer Sales data added with transactions from December 2022. For the most current details on pricing, take-up rates, etc. do drop us a query.

Project Name	Total Number of Units in Project	Cumulative Units Sold to-date	Lowest PSF in 2022	Highest PSF in 2022	Median $PSF in 2022	Take-Up Rate
AMBER SEA	132	0	-	-	-	0.00%
GEMS VILLE	24	0	-	-	-	0.00%
K SUITES	19	0	-	-	-	0.00%
MATTAR RESIDENCES	26	0	-	-	-	0.00%
SANCTUARY@NEWTON	38	0	-	-	-	0.00%
SOPHIA REGENCY	38	0	-	-	-	0.00%
SUNSTONE HILL	28	0	-	-	-	0.00%
THE ARDEN	105	0	-	-	-	0.00%
CAIRNHILL 16	39	1	$2,700	$2,700	$2,700	2.56%
POLLEN COLLECTION	132	4	$1,407	$2,191	$1,860	3.03%
19 NASSIM	101	4	-	-	-	3.96%
KLIMT CAIRNHILL	138	7	$3,574	$3,850	$3,714	5.07%
CUSCADEN RESERVE	192	10	$3,830	$3,830	$3,830	5.21%
JERVOIS TREASURES	36	2	-	-	-	5.56%
JERVOIS PRIVE	43	3	$2,672	$2,767	$2,720	6.98%
ENCHANTE	25	2	$2,647	$2,703	$2,675	8.00%
KOVAN JEWEL	34	4	$2,063	$2,200	$2,120	11.76%
THE ATELIER	120	20	$2,530	$2,798	$2,600	16.67%
HILL HOUSE	72	13	$2,783	$3,168	$3,031	18.06%
GRANGE 1866	60	11	$2,869	$3,007	$2,929	18.33%
ONE DRAYCOTT	64	13	$3,062	$3,249	$3,180	20.31%
PARKSUITES	119	28	$2,137	$2,354	$2,272	23.53%
DALVEY HAUS	17	4	-	-	-	23.53%
IKIGAI	16	5	$2,121	$2,281	$2,189	31.25%
10 EVELYN	56	18	$1,913	$2,837	$2,611	32.14%
THE CARRARA	6	2	$3,003	$3,003	$3,003	33.33%
THE JARDINE RESIDENCES	6	2	$2,957	$2,957	$2,957	33.33%
NORTH GAIA	616	207	$1,179	$1,438	$1,297	33.60%
ONE BERNAM	351	139	$2,251	$3,168	$2,452	39.60%
MIDTOWN BAY	219	94	$2,657	$3,454	$3,237	42.92%
PEAK RESIDENCE	90	43	$2,300	$2,872	$2,402	47.78%
SPRING WATERS VILLAS	6	3	$1,706	$1,842	$1,710	50.00%
BOTANIC @ CLUNY PARK	6	3	-	-	-	50.00%
THE LANDMARK	396	206	$2,118	$2,787	$2,413	52.02%
VAN HOLLAND	69	40	$2,739	$3,106	$2,884	57.97%
ZYANYA	34	20	$1,620	$2,091	$1,873	58.82%
ROYAL HALLMARK	32	19	$1,728	$2,237	$1,932	59.38%
PULLMAN RESIDENCES NEWTON	340	215	$2,683	$3,300	$3,011	63.24%
ATLASSIA	31	20	$1,901	$2,206	$2,080	64.52%
BARTLEY VUE	115	75	$1,725	$2,205	$1,936	65.22%
MOOI RESIDENCES	24	16	$2,339	$2,669	$2,498	66.67%
THE LILIUM	80	54	$1,918	$2,406	$2,241	67.50%
BAYWIND RESIDENCES	24	17	$1,953	$2,155	$2,080	70.83%
TENET	618	446	$1,185	$1,467	$1,381	72.17%
MYRA	85	64	$2,076	$2,428	$2,228	75.29%
HYLL ON HOLLAND	319	241	$2,448	$2,971	$2,672	75.55%
PERFECT TEN	230	174	$2,649	$3,585	$2,951	75.65%
WILSHIRE RESIDENCES	85	65	$2,500	$2,825	$2,704	76.47%
BELGRAVIA ACE	107	82	$1,012	$1,127	$1,080	76.64%
SKY EDEN@BEDOK	158	122	$1,854	$2,286	$2,118	77.22%
ONE HOLLAND VILLAGE RESIDENCES	296	232	$2,334	$3,426	$2,795	78.38%
LES MAISONS NASSIM	14	11	$4,953	$6,057	$5,461	78.57%
LEEDON GREEN	638	502	$2,462	$3,139	$2,816	78.68%
SERAYA RESIDENCES	17	14	-	-	-	82.35%
THE GAZANIA	250	207	$1,810	$2,606	$2,200	82.80%
HAUS ON HANDY	188	156	$2,571	$2,811	$2,674	82.98%
LIV @ MB	298	248	$2,079	$2,869	$2,423	83.22%
BRIGHTHILL RESIDENCES	6	5	$2,818	$2,937	$2,900	83.33%
MIDTOWN MODERN	558	469	$2,501	$4,783	$2,755	84.05%
PICCADILLY GRAND	407	344	$1,870	$2,593	$2,168	84.52%
PARK NOVA	54	46	$4,426	$4,896	$4,600	85.19%
LENTOR MODERN	605	519	$1,837	$2,513	$2,107	85.79%
BOULEVARD 88	154	134	$3,610	$4,121	$4,002	87.01%
RIVIERE	455	400	$2,307	$3,344	$2,876	87.91%
SLOANE RESIDENCES	52	46	$2,664	$3,193	$2,891	88.46%
15 HOLLAND HILL	57	51	$3,003	$3,141	$3,064	89.47%
CASHEW GREEN	19	17	$1,735	$1,960	$1,848	89.47%
MORI	137	123	$1,645	$2,165	$1,908	89.78%
THE AVENIR	376	338	$2,842	$3,515	$3,233	89.89%
ONE PEARL BANK	774	702	$2,189	$2,973	$2,566	90.70%
KOPAR AT NEWTON	378	345	$2,227	$2,841	$2,517	91.27%
NEU AT NOVENA	87	80	$2,676	$3,046	$2,694	91.95%
THE REEF AT KING'S DOCK	429	397	$2,175	$2,637	$2,429	92.54%
ONE TREE HILL COLLECTION	14	13	$3,134	$3,676	$3,405	92.86%
IRWELL HILL RESIDENCES	540	506	$2,589	$3,106	$2,881	93.70%
URBAN TREASURES	237	223	$1,873	$2,127	$2,006	94.09%
ASPEN LINQ	18	17	-	-	-	94.44%
PHOENIX RESIDENCES	74	70	$1,451	$1,689	$1,594	94.59%
THE M	522	495	$2,302	$3,193	$2,792	94.83%
PASIR RIS 8	487	463	$1,610	$2,100	$1,816	95.07%
MEYER MANSION	200	191	$2,460	$3,170	$2,627	95.50%
35 GILSTEAD	70	67	$2,057	$2,686	$2,570	95.71%
THE COMMODORE	219	211	$1,309	$1,667	$1,493	96.35%
KI RESIDENCES AT BROOKVALE	660	637	$1,720	$2,263	$2,016	96.52%
CANNINGHILL PIERS	696	673	$2,560	$4,419	$2,850	96.70%
RYMDEN 77	31	30	$1,433	$1,816	$1,770	96.77%
FORETT AT BUKIT TIMAH	633	619	$1,810	$2,409	$2,131	97.79%
PARC CLEMATIS	1468	1439	$1,076	$2,073	$1,791	98.02%
1953	58	57	$1,785	$2,113	$1,907	98.28%
THE HYDE	117	115	$2,732	$3,378	$3,009	98.29%
AMBER PARK	592	582	$2,243	$2,694	$2,481	98.31%
AMO RESIDENCE	372	367	$1,890	$2,406	$2,110	98.66%
THE WATERGARDENS AT CANBERRA	448	443	$1,288	$1,593	$1,456	98.88%
UPTOWN @ FARRER	116	115	$1,529	$1,717	$1,617	99.14%
AFFINITY AT SERANGOON	1052	1044	$1,104	$1,748	$1,531	99.24%
PARK COLONIAL	805	800	-	-	-	99.38%
KENT RIDGE HILL RESIDENCES	548	545	$1,451	$2,154	$1,844	99.45%
MAYFAIR GARDENS	215	214	$1,932	$2,277	$2,059	99.53%
RIVERFRONT RESIDENCES	1472	1466	$1,099	$1,464	$1,288	99.59%
SKY EVERTON	262	261	$2,787	$3,406	$2,862	99.62%
DAIRY FARM RESIDENCES	460	459	$1,359	$1,895	$1,686	99.78%
PARC CANBERRA	496	495	-	-	-	99.80%
JERVOIS MANSION	130	104	$2,177	$2,553	$2,374	100.00%
77 @ EAST COAST	41	41	$1,631	$1,858	$1,753	100.00%
AVENUE SOUTH RESIDENCE	1074	1074	$1,914	$2,623	$2,357	100.00%
CASA AL MARE	49	49	$1,710	$1,768	$1,739	100.00%
CLAVON	640	640	$1,562	$1,805	$1,702	100.00%
COASTLINE RESIDENCES	144	144	$2,646	$2,936	$2,833	100.00%
DUNEARN 386	35	35	$2,552	$2,614	$2,561	100.00%
FOURTH AVENUE RESIDENCES	476	476	$2,339	$2,728	$2,500	100.00%
FYVE DERBYSHIRE	71	71	$2,400	$2,696	$2,537	100.00%
INFINI AT EAST COAST	36	36	$1,935	$2,101	$2,035	100.00%
JADESCAPE	1206	1206	$1,561	$1,910	$1,772	100.00%
LA MARIPOSA	17	17	$1,764	$1,976	$1,922	100.00%
M SUITES	16	16	$1,600	$1,708	$1,656	100.00%
MAYFAIR MODERN	171	171	$1,859	$2,359	$2,217	100.00%
MIDWOOD	564	564	$1,592	$1,869	$1,710	100.00%
MONT BOTANIK RESIDENCE	108	108	$1,586	$1,856	$1,803	100.00%
NORMANTON PARK	1862	1862	$1,493	$1,993	$1,865	100.00%
NYON	92	92	$2,016	$2,551	$2,175	100.00%
ONE MEYER	66	66	$2,419	$2,711	$2,542	100.00%
PARC CENTRAL RESIDENCES	700	700	$1,165	$1,281	$1,207	100.00%
PARC ESTA	1399	1399	$2,201	$2,201	$2,201	100.00%
PARC GREENWICH	496	496	$1,105	$1,368	$1,244	100.00%
PARC KOMO	276	276	$1,478	$1,840	$1,627	100.00%
PARKWOOD COLLECTION	53	53	$737	$832	$795	100.00%
PARKWOOD RESIDENCES	18	18	$1,439	$1,751	$1,576	100.00%
PIERMONT GRAND	820	820	$1,298	$1,350	$1,334	100.00%
PROVENCE RESIDENCE	413	413	$1,047	$1,357	$1,252	100.00%
RESIDENCE TWENTY-TWO	22	22	$1,874	$1,915	$1,895	100.00%
SENGKANG GRAND RESIDENCES	680	680	$1,681	$1,913	$1,817	100.00%
STIRLING RESIDENCES	1259	1259	$2,606	$2,635	$2,621	100.00%
THE ANTARES	265	265	$1,894	$1,894	$1,894	100.00%
THE FLORENCE RESIDENCES	1410	1410	$1,384	$2,106	$1,737	100.00%
THE IVERIA	51	51	$2,473	$2,682	$2,543	100.00%
THE WOODLEIGH RESIDENCES	667	667	$1,977	$2,398	$2,178	100.00%
VERDALE	258	258	$1,725	$1,981	$1,829	100.00%
VERTICUS	162	162	$1,963	$2,321	$2,165	100.00%
COPEN GRAND	639	639	$1,157	$1,449	$1,339	100.00%
BURGHLEY DRIVE	5	5	-	-	-	100.00%
WATERCOVE	80	80	-	-	-	100.00%

Top 5 selling developments in 2022

Top 5 Selling New Launches in 2022	No. of Units	Median $PSF 2022	Median Price 2022	Tenure
COPEN GRAND	639	$1,339.0	$1,356,000	99 yrs from 31/08/2021
LENTOR MODERN	519	$2,107.0	$1,681,020	99 yrs from 26/10/2021
TENET	446	$1,381.0	$1,398,500	99 years leasehold
NORMANTON PARK	376	$1,864.5	$1,786,500	99 yrs from 22/07/2019
AMO RESIDENCE	367	$2,110.0	$1,750,000	99 yrs from 30/08/2021

Best-selling CCR new launch

Best Selling CCR New Launch	No. of Units	Median $PSF 2022	Median Price 2022	Tenure
LEEDON GREEN	186	$2,815.5	$1,907,000	Freehold
PERFECT TEN	161	$2,951.0	$2,420,000	Freehold
THE AVENIR	138	$3,232.5	$3,760,500	Freehold
HYLL ON HOLLAND	130	$2,672.0	$1,879,850	Freehold
KOPAR AT NEWTON	109	$2,517.0	$2,643,300	99 yrs from 22/04/2019

Best-selling RCR new launch

Best Selling RCR New Launch	No. of Units	Median $PSF 2022	Median Price 2022	Tenure
NORMANTON PARK	376	$1,864.5	$1,786,500	99 yrs from 22/07/2019
PICCADILLY GRAND	344	$2,168.0	$1,571,000	99 yrs from 02/08/2021
LIV @ MB	248	$2,423.0	$2,035,000	99 yrs from 23/11/2021
RIVIERE	200	$2,875.5	$3,037,500	99 yrs from 07/03/2018
ONE PEARL BANK	171	$2,566.0	$2,140,000	99 yrs from 01/03/2019

Best-selling OCR new launch

Best Selling OCR New Launch	No. of Units	Median $PSF 2022	Median Price 2022	Tenure
COPEN GRAND	639	$1,339.0	$1,356,000	99 yrs from 31/08/2021
LENTOR MODERN	519	$2,107.0	$1,681,020	99 yrs from 26/10/2021
TENET	446	$1,381.0	$1,398,500	99 years leasehold
AMO RESIDENCE	367	$2,110.0	$1,750,000	99 yrs from 30/08/2021
NORTH GAIA	206	$1,296.5	$1,375,000	99 yrs from 15/02/2021

Top 5 non-landed private properties for resale gains in 2022

Project	Sale Date	Transacted	Quantum Gains	% Gain	Holding Period (Years)
WESTCOVE CONDOMINIUM	5/23/2022	$1,060,000	$953,000	891%	23
HILLVIEW GREEN	3/22/2022	$1,640,000	$1,265,000	337%	23
BOTANIC GARDENS VIEW	4/7/2022	$3,750,000	$2,871,600	327%	24
JOO CHIAT MANSIONS	4/1/2022	$1,700,000	$1,290,000	315%	16
IVORY HEIGHTS	13/9/22	1780000	$435,000	309%	19

Bottom 5 private properties for resale gains in 2022

Project	Sale Date	Transacted	Quantum Loss	% Loss	Holding Period (Years)
HELIOS RESIDENCES	18/1/22	$2,800,000	-$2,056,600	-42%	9
REFLECTIONS AT KEPPEL BAY	29/4/22	$5,850,000	-$4,131,000	-41%	15
THE SCOTTS TOWER	25/10/22	$1,300,000	-$900,500	-41%	10
MARINA BAY SUITES	16/8/22	$5,000,000	-$3,250,000	-39%	9
SEASCAPE	21/10/22	$5,900,000	-$3,700,000	-39%	12

Rental market for private non-landed properties 

2022 has seen one of the best rental markets in six years for landlords, so don’t be misled by the fall in leasing volume. This could also just be due to the lack of supply, hence the demand and increasing prices - this is expected to clear up in 2023 as a bumper crop of new launches gets completed.

Overall leasing volume fell about 17 per cent, to 78,325 leases from 94,393 the year before. 

In leasing volume by region, the RCR saw the smallest decrease. There was around a 14 per cent drop only, to 26,298. The CCR and OCR saw a similar loss of volume, with both dipping by just over 18 per cent. 

Volume aside, rental rates are on a clear uptrend. 

The OCR saw the biggest increase as foreign workers returned, and locals began to rent while waiting completion of their own homes. Prices are up around 20 per cent, from $2.90 psf to $3.49 psf. 

The RCR saw the next highest increase of around 19.2 per cent, from $3.59 to $4.28 psf. 

The CCR saw the slightest increase, but it was still tangible as prices rose 17.1 per, from $4.14 to $4.85 psf.

Leasing volume by region	2021	2022	Change
CCR	28,250	22,992	-18.61%
RCR	30,500	26,298	-13.78%
OCR	35,643	29,035	-18.54%

Leasing price by region	2021	2022	Change
CCR	$4.14	$4.85	+17.15%
RCR	$3.59	$4.28	+19.22%
OCR	$2.90	$3.49	+20.34%

Top 5 developments for rental yield in 2022

District	Project	Tenure	Completion	Average Price	No. of Transactions	Average Rent ($PSF PM)	# Rental Contracts	Yield (%)
21	THE HILLFORD	60 YRS FROM 2013	2016	1,293	27	5.82	126	5.4
14	LE REGAL	FREEHOLD	2015	1,150	4	5.07	46	5.3
14	TREASURES @ G20	FREEHOLD	2015	1,237	4	4.93	21	4.8
5	VIVA VISTA	FREEHOLD	2014	1,626	8	6.34	110	4.7
14	# 1 SUITES	FREEHOLD	2016	1,141	7	4.43	26	4.7

Bottom 5 developments for rental yield in 2022

District	Project	Tenure	Completion	Average Price	No. of Transactions	Average Rent ($PSF PM)	# Rental Contracts	Yield (%)
15	EAST COURT	FREEHOLD	1983	1,499	8	1.7	5	1.4
10	FOUR SEASONS PARK	FREEHOLD	1994	3,162	4	4.49	46	1.7
10	ARDMORE PARK	FREEHOLD	2001	4,051	8	5.75	100	1.7
4	TERESA VILLE	FREEHOLD	1986	1,627	6	2.3	52	1.7
10	NASSIM MANSION	FREEHOLD	1977	2,857	5	4.02	6	1.7

HDB resale market

Resale flat transactions saw a small dip in volume, from 29,087 units to 26,551 units – a decrease of around 8.7 per cent. 

2-room flat transactions rose around 18 per cent, to about 454 units, whilst 3-room flats saw almost unchanged volume at 6,316 units (up by less than a percentage point). 

The larger flats, 4-room, 5-room, and EAs, all saw drops in volume; so we may soon be seeing the ceiling for resale flat prices. 

4-room flat transactions fell 9.12 per cent, to 1,120 units, while 5-room transactions fell 14.5 per cent to 6,672 transactions. EAs saw the biggest decline in volume, falling 17.35 per cent to 1,867 units. 

As with the previous year, HDB flat prices continue their unprecedented rise across the board. This is almost comparable to the pace we saw last year; so if there’s any slowing in the momentum, it’s more visible in the transaction volumes than the prices.

Flat Type	2021 Vol	2021 $PSF	2022 Vol	2022 $PSF	Approx Gain/Loss
1 ROOM	9	$591	10	$692	+17.07%
2 ROOM	385	$537	454	$603	+12.40%
3 ROOM	6266	$483	6316	$532	+10.32%
4 ROOM	12346	$499	11220	$541	+8.35%
5 ROOM	7804	$480	6672	$519	+8.00%
EXECUTIVE	2259	$453	1867	$499	+10.19%
MULTI-GENERATION	18	$491	12	$513	+4.46%

BTO launches in 2022

Town	BTO	Launch	Est. Completion	Units
Geylang	Dakota Crest	17 Feb 2022	4Q 2027	443
Kallang/Whampoa	King George’s Heights (PLH)	17 Feb 2022	3Q 2027	398
Tengah	Parc Flora @ Tengah	17 Feb 2022	3Q 2025	560
Tengah	Plantation Creek	17 Feb 2022	2Q 2026	713
Yishun	Grove Spring @ Yishun	17 Feb 2022	4Q 2024	987
Yishun	Yishun Boardwalk	17 Feb 2022	2Q 2025	852
Bukit Merah	Bukit Merah Ridge (PLH)	27 May 2022	1Q 2028	1669
Jurong West	Lakeside View	27 May 2022	4Q 2026	1016
Queenstown	Ghim Moh Ascent (PLH)	27 May 2022	1Q 2028	867
Toa Payoh	Kim Keat Heights	27 May 2022	3Q 2027	385
Yishun	Yishun Beacon	27 May 2022	2Q 2026	646
Ang Mo Kio	Central Weave @ AMK	30 Aug 2022	2Q 2028	896
Bukit Merah	Alexandra Vale (PLH)	30 Aug 2022	2Q 2028	782
Bukit Merah	Havelock Hillside (PLH)	30 Aug 2022	4Q 2028	869
Choa Chu Kang	Keat Hong Grange	30 Aug 2022	4Q 2026	987
Jurong East	Jurong East Breeze	30 Aug 2022	2Q 2028	562
Tampines	Sun Plaza Spring	30 Aug 2022	2Q 2026	267
Woodlands	Woodlands South Plains	30 Aug 2022	1Q 2027	630
Bukit Batok	West Glades @ Bukit Batok	23 Nov 2022	1Q 2028	790
Kallang/Whampoa	Kallang Horizon (PLH)	23 Nov 2022	1Q 2028	477
Queenstown	Ghim Moh Natura (PLH)	23 Nov 2022	1Q 2028	991
Queenstown	Queensway Canopy	23 Nov 2022	4Q 2028	751
Queenstown	Ulu Pandan Banks (PLH)	23 Nov 2022	3Q 2029	1330
Tengah	Garden Waterfront I & II @ Tengah	23 Nov 2022	1Q 2027	2077
Yishun	Aranda Breeze @ Yishun	23 Nov 2022	2Q 2028	699
Yishun	Miltonia Breeze @ Yishun	23 Nov 2022	2Q 2029	1334
Yishun	Vanda Breeze @ Yishun	23 Nov 2022	2Q 2029	961

Executive Condominium (EC) launches in 2022

Project	Units	Units Sold-To-Date	Lowest $PSF In 2022	Highest $PSF In 2022	Median $PSF In 2022	Take-Up
Copen Grand	639	639	$1,157	$1,449	$1,339	100.00%
North Gaia	616	207	$1,179	$1,438	$1,297	33.60%
Tenet	618	446	$1,185	$1,467	$1,381	72.17%

Policy changes in 2022

The significant policy change for the year was the September 2022 cooling measures. We have more extensive details here. But to summarise:

• For the purposes of calculating TDSR limits, an interest rate floor of four per cent will be used 
• For the purposes of calculating MSR limits, an interest rate floor of three per cent will be used 
• The maximum Loan To Value (LTV) limit for HDB flats is reduced to 80 per cent, from the previous 85 per cent
• For those who have just disposed of a private property, there is a 15-month wait-out period before they’re allowed to purchase a resale flat. The exception is if they’re 55 years or older, and are right-sizing to a 4-room or smaller flat; in such cases, there is no wait-out period. 

As the cooling measures are still so recent, we will likely see the effects only later in the coming year. 

Notable trends that emerged in 2022

• Even HDB upgraders began to get priced out of new launches 
• Rental is back in vogue 
• Rising interest rates prompt recalculations by investors and homeowners alike

1. Even HDB upgraders began to get priced out of new launches 

We’ve covered this more extensively in this previous article. Prices of $2,000+ psf have become the norm for new launches, even in non-central areas. This raises the quantum of a typical family-sized unit (around 1,000 sq. f.t) to the $2 million mark. 

This marks quite a turning point, as previously it was just first-time home buyers that were priced out. Now, even those who have waited out their MOP and sold may have to opt for a more affordable resale condo instead. 

Developers, on the other hand, have little leeway to drop prices. They’re caught between the uncertainty of the wider economy (e.g., the war in Europe may suddenly jack up prices of materials and fuel), and higher ABSD and Land Betterment Charges. 

Couple this with a high commission in show flats, and there’s no real room left for a major discount.

2. Rental is back in vogue 

2022 is the year of the landlord, with rate hikes happening across the board. This is due to the return of foreign workers, of both the S-Pass and E-Pass varieties. 

However, their demand is now complemented by the large number of Singaporeans who bought homes in recent years. Those awaiting completion of their BTO or condo are adding to rental demand, as well as those who can’t buy a home but are prompted to move out (e.g., singles who are too young to buy flats, but need their own space due to arrangements like Work From Home). 

Rising demand is expected to continue into 2023 (although supply will be eased with 2023 new condo completions); so it’s not surprising that more tenants are opting for longer leases. From word on the ground, more tenants are trying to “lock in” better rates with two to three-year leases. Consequently, we’ve also seen more realtors once again showing interest in rental, as it becomes a more viable business for them. 

3. Rising interest rates prompt recalculations by investors and homeowners alike

Given the low-interest rates over the past decade (since around 2008/9), many Singaporean homeowners and investors are in foreign territories with loans. 

It is psychologically impactful that the average bank home loan now stands at around three per cent, with fixed rate packages going as high as 4.1 per cent. The rates are no longer below the guaranteed CPF interest rate of 2.5 per cent, so the era of “borrowing for free” is well and over. 

For homeowners, a particular concern is the CPF withdrawal limit – now is a good time to check if you’re close to it, as you don’t want to end up having to pay the loan in cash in your late 50s or 60s. 

For investors, there is some relief among landlords – it’s possible to claim the interest portion of the mortgage as a tax deduction. Owner-investors who don’t rent out, however, are scrambling to work out the long-term impact on their returns. Property prices may be rising, but sharp hikes in interest rates will eat into any eventual returns. 

We expect a lot of investors will be reviewing their decisions, in the next few months. 

Overall, 2022 was a bumpy and unpredictable year, and we’ve yet to see the full effects sink in. We would be more defensive going into 2023, as it’s unclear how the effects on the property market are playing out. One thing is for sure: we’re going into 2023 at sky-high prices, which should make any buyer hesitant. 

Finally, from the team at Stacked, have a good long weekend break and a Happy New Year!

For more updates and trends on the Singapore property market, follow us at Stacked. We’ll also provide in-depth reviews of new and resale properties alike, so you can make a better-informed choice.