In September 2022 the number of Housing and Development Board (HDB) flats sold for S$1 million or more hit a record high.The overall year-on-year price increase for HDB resale flats in September to 11.1 per cent.
Hence, due to such explosive growth in the property market cooling measures have been implemented. But even with the cooling measures in place the Singapore property market could still be on the rise…
Why The Property Market Is Still Hot.
In September the number of million dollar HDB resale flats hit all time highs at 45 units, leading to many experts believing that the number of million-dollar HDB resale flats could cross the 300-unit mark. This is because demand may still be supported by other groups of buyers such as first-timers and those relocating from other HDB flats.
In addition, the higher resale volume could be that median prices of new condominium launches in the suburbs have reached new highs, breaching the $2,000 per sq ft benchmark. Buyers who are priced out of the new condo market will probably turn to the HDB resale market, pushing prices further.
In addition, Chinese buyers have snapped up the biggest share of Singapore’s condo market in 2022 compared with other foreigners, as total foreign buying of private non-landed homes almost bounced back to pre-pandemic levels.
A report also noted that the total number of foreign (non-PR) buyers for all condo purchases is nearing pre-pandemic levels – undeterred by property curbs implemented in December 2021 and higher interest rates.
In the first eight months of 2022, foreigners bought 607 condo units, slightly lower than the 632 units purchased in the same period in 2019. Despite the increased additional buyer’s stamp duty, some buyers consider luxury properties here to be cheaper than in many other cities, given that prices have similarly increased in those places.
The latest cooling measures introduced are “not likely to be significant” as high net worth individuals have sufficient cash or capitals
Luxury condo sales as a proportion of total non-landed units bought by foreigners also rose – to 23.6 per cent in January to August 2022 from 10.9 per cent in the same period of 2020.
So what is the direction of the property market in Singapore?
The property market may slow down due to cooling measures in the coming months.
However, as of now the property market is still an excellent place to invest in due to the rising prices and many affluent investors continuously investing in Singapore property.