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About Highest Increase in Private Residential Homes Prices In 10 Years | Private residential homes prices increased by 10.6% y-o-y in 2021 according to the Urban Redevelopment Authority. Therefore, the current quarterly report is a sharp rise as opposed to the 1.1% q-o-q spike that was registered in 3Q2021 by the private residential market. Thus, the price increase of private residential increase by 10.6% y-o-y in the market for the entire 2021 is the highest price increase seen since 2010, which by then recorded17.6% y-o-y price spike.
The senior director of research and consultancy at JLL, Ong Teck Hui, said that the aspiration to possess or dive into private homes investment has stood still and strong despite the pandemic unrest and the cooling measures, but supported by a low-interest rate ambience. He added that the five per cent jump in private residential homes price in 4Q2021 was probably because of high demand from optimistic pricing developers and buyers, which therefore enhanced strong price increment across all market areas.
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According to the CEO of PropNex Realty, Ismail Gafoor, the price increment for the last quarter was much more robust than expected and was powered by firmer launch prices at new developments in RCR and CCR. For instance, in view of the caveats, CanningHill Piers located in Clarke Quay became the best-selling project in the last quarter with an average price of $2,937 per square foot; 582 units sold while Jervois Mansion fetched 101 units at $2,578 per square foot. Other launched projects including Leedon Green, Normanton Park and The Avenir also continued to move in the last quarter.
Leedon Green Artist’s Impression
He added that the current property cooling measures established on Dec 1, 2021, are probably going to steam in some easing in the business market as several buyers and sellers withhold purchases to reexamine the situation first. And, this could result in some moderations in terms of transaction volume in the short-haul.
Nonetheless, in OCR, the price increment was probably led by successful sales of new developments including The Commodore, which registered 164 units sold at an average price of $1,511 per square foot, and the likes of Dairy Farm Residences, which accounted for 153 units sold at an average price of $1,657 per square foot.
Finally, the new developments in 1Q2022 included the Royal Hallmark located in district 15 Haig Lane, The Arden on Phoenix Road and the Belgravia Ace situated along off Ang Mo Kio Ave 5 and Kovan Jewel on Kovan Road.
