What does 2022 have in store for the property market in Singapore?
2021 has been a prosperous year for the Singapore property market place, which has displayed incredible resilience in the confront of the COVID-nineteen pandemic.
Despite condom management measures that seemed e'er-changing, dependent on the number of the COVID-19 cases in the community, Singaporeans have shown that they are more than adjustable than ever and have not let this get in the way of their property plans.
The PropertyGuru Singapore Property Market place Outlook 2022 (PMO 2022) reflects on the twelvemonth gone by, pulling together key data and adept insights to predict what we tin wait forrad to in 2022.
LOOKING Dorsum AT 2021
Property prices and transactions rose for six sequent quarters, overcoming all adversities and bucking all trends. Even during traditional lull seasons, such as the Lunar Seventh Calendar month in August and September, the market place continued to nail.
With most borders remaining shut until the second half of the year, belongings activity in 2022 was primarily driven by local buyers.
Over 25,000 HDB flats reached their Minimum Occupation Period in 2021, resulting in a large group of HDB upgraders fuelling demand for larger HDB resale flats and entry-level condos. The luxury segment as well saw a revival as many record-breaking transactions fabricated headlines throughout the year. Many Good Class Bungalows changed hands too.
"There are many ways wealth taxation tin materialise. For holding, they could implement a capital gains tax, or bring back manor or inheritance taxation. They may also tax luxury properties priced in a higher place a certain quantum." – Dr Tan Tee Khoon, PropertyGuru
However, despite climbing prices, the Government announced in June 2022 that the market place was not "overheated" yet, quelling rumours. In October 2021, the Authorities introduced a new Prime Location Housing (PLH) model to manage the prices of hereafter HDB flats in prime number locations.
Prices take risen each quarter since the circuit breaker in Q2 2020, and although the pace of growth is slowing down, we wait holding prices to continue ascension for nigh of 2022.
With some other estimated 31,000 HDB flats coming off their MOP in 2022, the bear upon of HDB upgraders is likely to go on. Additionally, foreign investors will come back into the market if Singapore continues to reopen its borders via Vaccinated Travel Lanes (VTLs).
In 2022, nosotros are expecting only most xi new launch projects. This lack of new launches is because the Regime has been actively cutting back on the land supply over the by few years. With the GLS pipeline tapering, there was a slight buzz in the collective sales scene this year.
Equally of Q3 2021, almost 25 new en bloc sites were put up for tender, compared to only eleven last twelvemonth. How many are somewhen sold remains to be seen. This will decide the supply for the next few years.
In response to the COVID-nineteen pandemic, the U.s. Federal Reserve slashed interest rates to near-cipher in early on 2020. Global interest rates and local mortgage rates recovered slightly in 2021, but take generally remained depression. Access to affordable credit has contributed to the contempo property buying frenzy, as it is much cheaper to take up a home loan now than information technology has been in years.
Recently, the US Fed appear that they intend to raise interest rates at least twice in 2022. While a sudden spike is unlikely, this volition inevitably event in a gradual increase in Singapore mortgage rates.
"Interest rates may ascension in the longer term only are likely to remain depression in the short- to medium-term." – Paul Wee, PropertyGuru
Finally, in that location is chatter around introducing wealth tax to address the growing wealth disparity in Singapore.
The Government has said that they hold to wealth tax in principle, only it is "not then easy to implement". The current challenge is how to impose the tax over a range of assets – which will likely include property – and how to bulldoze it equitably.
CONCLUSION: IS 2022 THE Yr WHEN THINGS 'GO BACK TO NORMAL'?
We will probably still grapple with safe management measures in our daily lives in 2022. However, given how well the bulk has adapted this year, it probable won't matter to the belongings market, which is expected to continue thriving.
For more in-depth assay on the above, read the full PropertyGuru Singapore Holding Market place Outlook 2022 here. Or read past years' Property Market Outlook Reports hither: 2021, 2020, 2019.
This article was outset published on PropertyGuru.
0 Response to "What does 2022 have in store for the property market in Singapore?"
Post a Comment