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S’pore private home rates slowed to 0.2% in Q4 2022 amid sharp drop in sales

S’pore private home rates slowed to 0.2% in Q4 2022 amid sharp drop in sales

Private home price growth in Singapore reportedly cooled to 0.2% in Q4 of 2022 as sales plummeted sharply in response to the escalating economic woes, two rounds of property bans, and the lack of significant new releases.

Since prices dropped 1% in Q1 of 2020, the price increase of 0.2% can be considered the weakest quarterly growth. According to figures released by the Urban Redevelopment Authority (URA) on Tuesday, this is in contrast to the growth rates of 3.8% in Q3 and 3.5% in Q2.

Apparently, private home price growth for the entire year of 2022 reached 8.4%, a decrease from the 10.6% increase in 2021.

Private home sales fell by nearly 60% year over year and 49% in Q4 compared to Q3. The sales decreased overall in 2022 by roughly 36% compared to 2021.

The landed market rose by 9.5% in 2022, outpacing the non-landed sector's 8% growth.

It has also been revealed that the landed prices increased by 0.5% over the prior three months in just Q4, following a 1.6% increase in Q3.

The prices for non-landed properties increased 0.1% after increasing 4.4% in the previous quarter, while the prices for suburban houses decreased 2.6% after increasing 7.5% in the past quarter.

Sources further reveal that the prices in the prime district only surged 0.5%, as opposed to a 2.3% increase in Q3.

According to Nicholas Mak, the head of research and consultancy at ERA Realty, strict total debt servicing ratio restrictions under the most recent cooling measures significantly reduced the housing budgets of many suburban property buyers who frequently rely on large bank financing.

Private non-landed residences in the suburbs, with a 9.3% gain for the entire year, however, beat those in the prime and city perimeter sectors.

Furthermore, the prices in the center of the city increased 4.6%, while those on the outskirts of the city jumped 9.2% in 2022.

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.