The Singapore Real Estate Market is Booming – Q1 2021

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Property prices in Singapore are skyrocketing.

Comparing 4Q2020 and 1Q2021. Image Source: URA

Comparing 4Q2020 and 1Q2021. We see a 3.3% increase in prices of private properties. This can be attributed to the developers who have brought 3716 private residential units to the market, namely Midtown Modern, Grange 1866, Normanton Park and The Atelier.

The take-up rate has increased by 34.2% and is probably one of the highest we have seen in the last 3 years. The vacancy rate is also at an all time low. So if you are still looking for potential new listings. Don’t hesitate to contact us. Our team of consultants will send you a list of projects that are good value for money.

Future supply and demand

Pipeline supply of private residential units and ECs. Image Source: URA

Another issue currently facing Singapore is the limited future supply of private residential units.

Apart from the 23,735 unsold units (including ECs) with planning permission at the end of 1Q2021, there is only a potential supply of about 3,840 units (including ECs) from Government Land Sales (GLS) properties that have not yet received planning permission.

We could see a surge in resale transactions in 2023 and a sudden drop in the supply of resale condos in 2025. This could inevitably lead to a surge in demand for new apartments, driving up the price.

 Inventory and vacancy

According to URA, there are 23,735 unsold units (including EGs) with building permits as of the end of Q1 2021. In addition, there is a potential supply of approximately 3,840 units (including EGs) from Government Land Sales (GLS) sites that have not yet received planning permission.

The vacancy rates of completed private residential properties at the end of 1Q2021 in CCR, RCR and OCR were 9.5%, 6.1% and 5.3% respectively, compared to 11.0%, 7.3% and 5.1% in the previous quarter.

The following table shows the vacancy rate of private apartments by market segment

Quarter 1/CCR 2/RCR 3/OCR
2Q/201710.3%8.1%7.1%
3Q/201710.9%8.3%7.3%
4Q/201711.2%8.5%5.9%
1Q/201811.6%8.3%4.9%
2Q/201810.9%7.7%5.0%
3Q/201810.4%8.1%4.5%
4Q/20187.9%7.4%5.1%
1Q/20197.6%6.8%5.4%
2Q/20197.8%6.4%5.7%
3Q/20198.2%6.0%5.3%
4Q/20196.9%5.8%4.7%
1Q/20207.4%6.2%4.1%
2Q/20207.5%6.1%4.0%
3Q/20209.2%7.4%4.2%
4Q/202011.0%7.3%5.1%
1Q/20219.5%6.1%5.3%
*Table Source: URA

1/ Vacancy rates prior to 4Q2016 were derived from consumption rates of a sample of private residential units. The sample was not selected to produce market segment level vacancy data. From 4Q2016 onwards, vacancy rates are derived from consumption values of all completed private residential units.
2/ Core Central Region includes Postal Districts 9, 10, 11, Downtown Core Planning Area and Sentosa. A map of the Central Region shows the Core Central Region (CCR) and the rest of Central Region (RCR).
3/ The remainder of Central Region includes the area within Central Region, which is outside Postal Districts 9, 10, 11, Downtown Core.

Planning Area and Sentosa. A map of Central Region, which includes Core Central Region (CCR) and the rest of Central Region

Our Thoughts

Analysts believe the increase in demand compared to previous years is largely due to the aftermath of the property cooling measures imposed in July 2018, with many buyers waiting for the right opportunity to step in

Despite the global economic downturn and the Covid 19 pandemic, Singapore is proving that it is able to trim it’s sail and move ahead not only winning votes and confidence of not only local buyers, but also foreign buyers from China and Indonesia, helping the property market to trend upwards. Lastly Analysts still believes that private property prices will rise moderately and sustainably in the long run.

Finally, contact us if you are one of those waiting for the right time to explore value for money properties. We may have just the right dose of medicine for you

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