The first quarter of the year closed with a 3.84% or 4.3-point quarter-on-quarter (QoQ) increase in the PropertyGuru Property Market Index (PMI Q2 2021) to 117.8 points. We also saw a 14.0% or 19-point decline in our Property Supply Index (PPSI) on the supply side of things.
The two paint a picture of a bullish market, as the Singapore property market continues to defy the economic recession that is raging on.
Property Price Index Overview
The PropertyGuru Singapore Property Price Index (SPPI), which tracks asking prices in the non-landed private residential market, recorded a significant QoQ gain of 3.84%.
Not only is this the fourth consecutive quarter of price growth in the non-landed private residential property sector, but it is also the most significant increase we’ve recorded since Q2 2018. If you remember, that was also the quarter before the most recent round of property cooling measures were implemented.
With the Government’s pandemic aid coming to a hard stop in Q1 2021, the market confidence is expected to wane. Hence, even without intervention, the market may cool in H2 2021, as economic reality starts to take its bite.
As usual, there are most transactions in the $1 million to $1.5 million price range. Comparatively, there is a slight dip in properties priced under $1 million and an increase in properties priced between $1.5 million to $2 million. This may be due to a slowdown in investments in shoebox units, and an emerging preference for more spacious homes among owner-occupiers.
Property Supply Index Overview
The PropertyGuru Singapore Property Supply Index (SPSI), which tracks the number of non-landed private residential listings posted on PropertyGuru, dipped by 14.0% to 116.1 points this quarter.
Since the release of pent-up demand in Q2 2020, the take-up rate has improved, and the number of condo and apartment listings on PropertyGuru have continued to fall.
URA’s records also show that uncompleted private residential units (excluding ECs) in the pipeline with planning approvals have started moving more quickly, with 2,694 units sold this quarter. At this rate, the supply glut will clear in about two years.
In general, districts in the West seem to be benefitting from the increased activity in the region. These include District 22 (Boon Lay, Jurong, Tuas), District 23 (Dairy Farm, Bukit Panjang, Choa Chu Kang) and District 5 (Buona Vista, West Coast, Clementi New Town).
District 4 (Harbourfront, Telok Blangah) also performed well, likely due to the recent launch of The Reef at King’s Dock.
On the flip side, several districts in the central area registered minor asking price declines of under 1.5%. These look like normal fluctuations, especially since the central area asking prices are already the highest in Singapore and hence, are more likely to adjust downwards or grow at a slower pace.
Top 10 Best-selling Condos
The best-selling project of the quarter was Normanton Park in District 5, which was launched in January 2021. The project kicked off the year with a bang, selling 600 units on the first day of sales. By the end of the quarter, it had sold 733 units.
The other recent launches that are Parc Central Residences (an executive condominium, 514 units sold), Midtown Modern (368 units sold) and The Reef at King’s Dock (341 units sold), also did well, taking up the top spots for the quarter.
Rising Stars: Districts to Watch Out for
District 6 (City Hall, Clarke Quay)
Things have been quiet in District 6 (City Hall, Clarke Quay), but Canninghill Pier (the former Liang Court) is slated to launch in the upcoming quarter. Not only is the project the first new launch in a long time, but it is also an integrated development.
District 2 (Chinatown, Tanjong Pagar)
Likewise, the launch of One Bernam in Q2 2021 is likely to spark activity in District 2 (Chinatown, Tanjong Pagar). Realty Centre, which is nearby, was also sold en bloc in 2019 and the redeveloped project is expected to launch soon.
District 15 (East Coast, Marine Parade)
District 15 (East Coast, Marine Parade) was one of the best-performing districts of the quarter, and it is likely to continue to be in hot demand. There are quite a few new condos in this popular East-side district that will be completed soon, including Amber45, MeyerHouse and Seaside Residences.
The Singapore property market seems to have more than recovered from the height of the pandemic, possibly even surpassing pre-COVID-19 levels.
With the border restrictions still in place, the market is largely driven by Singaporean buyers. The local buying frenzy may continue for a while more as more five-year-old BTO flats reach MOP in 2021.
However, we expect the market to begin slowing down as Government aid is removed. Should it not, the Government is prepared to step in with tighter curbs to cool it down anyway.