2022 Q2 – Market Outlook
Table of Contents
What happen during last Quarter (Q2 – 2022)
While everyone is still very much taken away by the situation of COVID, we have unknowingly passed the mid-year mark of 2022. During the last quarter, what had happened to the property market?
Let us look at the high-level statistical figure of Singapore economic situation. In Q1 of 2022,
Our CPI (Consumer Price Index) has increased to 4.1, from the earlier quarter (Q4 of 2021) of 3.7
Our GDP has also increased to 4.8, from the earlier quarter (Q4 of 2021) of 4
With the above continuously up trend, what happen to the property market in Q2 2022?
HDB Resales – Q2
Overview
HDB flat is the first consideration flat for most, if not all, Singapore citizens. This made HDB flats, the focus of lots of flat buyers. Be it BTO (Build-To-Order), Resales, Sales of Balance Flat.
In Q2 of 2022, HDB resale prices increased by 2.8%. In the first half of 2022, HDB resale prices have increased by 5.3%.
Resales transaction – Q2
In Q2 – 2022, the total number of resales applications submitted to HDB is 6,819. The number is lower than the same quarter last year, of 7,063 by 3.5%
As compared to last quarter, Q1 – 2022, the number of transactions is lower by 115, which is, in estimation, a deduction of 1.7% from 6,934
When we dive into the detail, comparing the same quarter last year, the only flat type that increases is the 3-room flat. The rest of the flat type has come down in transactions.
Comparing Quarter on Quarter, the following transaction gives a clearer picture of the figures.
| QUARTER | 1 – Room | 2 – Room | 3 – Room | 4 – Room | 5 – Room | Executive / Multi – Generation | Total |
|---|---|---|---|---|---|---|---|
| Q2 – 2021 | 4 | 103 | 1,484 | 3,078 | 1,866 | 528 | 7,063 |
| Q3 – 2021 | 2 | 118 | 1,831 | 3,593 | 2,268 | 621 | 8,433 |
| Q4 – 2021 | 0 | 114 | 1,785 | 3,347 | 2,085 | 609 | 7,940 |
| Q1 – 2022 | 2 | 111 | 1,647 | 2,954 | 1,731 | 489 | 6,934 |
| Q2 – 2022 | 4 | 111 | 1,558 | 2,909 | 1,762 | 475 | 6,819 |
Comparing Quarter on Quarter since 2020, just before the start of COVID, the following transaction numbers gives a clearer picture of the figures.
Resales Price
After looking at the number of HDB transactions, let us look at the price movement for various HDB flat types. When I first look at the price Vs. transaction number. I was shocked as the direction of away from what I expected.
Let us start by looking at the average price of various HDB town and their respective flat type.
| TOWNS | 3 – Room | 4 – Room | 5 – Room | Executive |
|---|---|---|---|---|
| Ang Mo Kio | $365,000 | $515,000 | $785,000 | |
| Bedok | $345,000 | $465,000 | $643,000 | $848,900 |
| Bishan | $432,500 | $605,000 | $851,000 | |
| Bukit Batok | $345,000 | $495,000 | $790,000 | $780,000 |
| Bukit Merah | $370,400 | $751,000 | $866,000 | |
| Bukit Panjang | $357,000 | $475,000 | $584,500 | |
| Bukit Timah | ||||
| Central | $964,000 | |||
| Chua Chu Kang | $400,000 | $485,000 | $571,000 | $700,000 |
| Clementi | $369,500 | $732,500 | $900,000 | |
| Geylang | $340,000 | $570,000 | ||
| Hougang | $365,000 | $495,000 | $608,800 | $803,000 |
| Jurong East | $351,500 | $490,000 | $647,500 | |
| Jurong West | $340,000 | $469,000 | $550,000 | $665,000 |
| kallang / Whampoa | $372,500 | $780,000 | $836,500 | |
| Marine Parade | $418,000 | |||
| Pasir Ris | $500,000 | $600,000 | $750,000 | |
| Punggol | $436,000 | $550,000 | $580,000 | |
| Queenstown | $385,000 | $829,000 | $875,000 | |
| Sembawang | $472,500 | $545,000 | ||
| Sengkang | $425,000 | $512,500 | $580,000 | $674,000 |
| Serangoon | $526,500 | |||
| Tampines | $390,000 | $510,000 | $625,500 | $808,900 |
| Toa Payoh | $320,000 | $700,900 | $784,000 | |
| Woodlands | $337,000 | $450,000 | $545,000 | $755,000 |
| Yishun | $360,000 | $470,000 | $622,000 | $757,500 |
Looking at the number of HDB transactions across the 2 quarters, it is relatively flat. Let us look at the price movement for various HDB flat types. When I first look at the price Vs. transaction number. I was shocked as the direction of away from what I expected.
With a drop of less than 2% in resales transactions. The price has gone up by 2.8%, from Q1 2022 with a price index of 159.5 to Q2 2022 of 163.9
Hot Spot for HDB Resale Flat
Looking at the transaction count and the price, the top 5 most popular HDB town buyers are attracted are Sengkang, Punggol, Yishun, Woodlands, and Jurong West. The 5 HDB Towns contributed 34.8% of the total number of HDB transactions over quarter 2 of 2022.
The average price of 4 Rooms and 5 rooms flat, which is of higher in demand, in the 5 HDB towns.
| Town | 4 – Room | 5 – Room |
|---|---|---|
| Sengkang | $ 515,933 | $ 698,000 |
| Punggol | $ 547,959 | $ 655,000 |
| Yishun | $ 468,230 | $ 655,000 |
| Woodlands | $ 453,452 | $ 588,000 |
| Jurong West | $ 482,951 | $ 677,000 |
Future Sharing
Looking at the number of HDB transactions across the 2 quarters, it is relatively flat. Let us look at the price movement for various HDB flat types. When I first look at the price Vs. transaction number. I was shocked as the direction of away from what I expected.
With a drop of less than 2% in resales transactions. The price has gone up by 2.8%, from Q1 2022 with a price index of 159.5 to Q2 2022 of 163.9
What’s NEXT
Now is still a good opportunity to upgrade from HDB to private property. As HDB is already hitting million dollars for bigger units, such as Jumbo in Woodlands, the gap between HDB and some areas of private property is getting closer.
If upgrading to private property is always toggling in your mind, but you are not sure, should a new launch or resales be a better option? Do ping me at +65 90107188. We can discuss to see what best fit your finances, ensuring you are comfortable moving forward financially.
