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Singapore Property Market Index Q1 2021
2020 was definitely a year to remember, marked by the COVID-19 outbreak and the resultant global recession. But while Singapore’s economy continues to contract, the property sector remained surprisingly resilient – some would even say, bullish – in 2020.
In particular, the final quarter closed with a +0.98% increase in our Property Market Index (PMI Q1 2021) from 112.4 to 113.5 points. The PropertyGuru Property Supply Index (PPSI) also saw a 28.9% or 55.0-point decline, as more properties were sold and their listings removed.
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Get the Guru View: Key Findings of the PMI Q1 2021
Property Price Index Overview
The PropertyGuru Singapore Property Price Index (SPPI), which tracks asking prices in the non-landed private residential market, recorded yet again a slight QoQ gain of 0.98% to 113.5 points. This is the third consecutive quarter of increase.
Although sales volumes began to taper down in Q4 2020, the euphoria lasted longer than expected. Property sales seemed largely unaffected by any seasonal declines typically associated with the year-end festivities and travel season. Q4 2019 recorded dips in both asking and transacted prices, whereas Q4 2020 recorded increases.
While the previous quarter saw greater demand for new launch projects (58.3% of all transactions), resale properties seem to have quickly caught up in the quarter, comprising 54.5% of all non-landed private residential property transactions. This is atypical – the ratio is typically closer to 50-50, with new launches generally favoured.
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 28.9%, from 190.1 to 135.1 points this quarter.
By tracking the listings on PropertyGuru, we gain insight on the movement of properties for sale. Such continued and sharp declines over the past two quarters suggest a healthy take-up rate as more advertisements are taken down once sold. This indicates that the housing supply glut is slowly but surely clearing up.
District Roundup
A district’s median asking price is usually highly correlated with the number of new launches in the area. However, this did not seem the case for most of 2020, likely due to the developers’ cautious pricing of new projects amid the economic uncertainty.
In Q4, the top five districts recorded minimal growth of mostly under 2%. District 10, which encompasses the Tanglin, Holland, and Bukit Timah areas, saw the most significant QoQ increase in asking prices (2.51%).
The bottom five districts are typically those that see little to no activity due to a lack of new launches and/or interest. In this case, District 22 (Boon Lay, Jurong, Tuas) and District 26 (Mandai, Upper Thomson) are good examples.
Surprisingly, popular districts 18 (Pasir Ris, Tampines) and 15 (East Coast, Marine Parade) recorded some of the highest price declines of 1.02% and 1.52% respectively.
Top 10 Best-selling Condos
The bestselling project of the quarter was Clavon at Clementi, selling 70% of its units on launch day and a total of 471 units in the quarter. Clavon was the best performing project in 2020 as well. Coming in second is Ki Residences at Sunset Way, selling 168 units in the quarter. Ki Residences was yet another highly anticipated project due to the lack of launches in the area. A noteworthy entry into this list is Piermont Grand, an EC that launched back in July 2019.
Rising Stars: Districts to Watch
District 2 and 7
The areas in and around the Central Business District are increasingly popular. This quarter, District 2 (Chinatown, Tanjong Pagar) saw a 1.78% rise in median asking prices. We expect this to increase further with the launch of the upcoming One Bernam.
Nearby, District 7 (Beach Road, Bugis, Rochor) saw a slight dip in prices (-0.935%) this quarter, but this trend is likely to change once the highly anticipated Midtown Modern is launched.
District 5
We expect increased activity in District 5 (Buona Vista, West Coast, Clementi New Town). This quarter, Clavon launched in Clementi and prices rose by 1.22% QoQ. With One Normanton Park and One North Eden also launching in the same district, prices are likely to continue upwards.
District 9
Although the CCR was performing poorly in the early months of 2020, interest in the prime District 9 (Orchard, River Valley) seems to be picking up. In Q4, median asking prices grew by 0.704%, while transaction prices rose by 3.2% QoQ. There are fewer new launches in District 9 (compared to suburban districts), but we can look forward to The Atelier in the coming months.
Conclusion
Despite economic uncertainties, the Singapore property market is still going strong with surprisingly resilient demand and growing buyer confidence. Judging from the performance of early 2021 new launches such as One Normanton Park and The Reef at King’s Dock, the buying frenzy shows no signs of slowing down in the coming quarter.
While this is encouraging, the sustainability of these trends is a key concern. The past year was characterised by pandemic aid that helped keep many afloat. But with the possibility of tighter property curbs and as the economic stimulus tapers off in the coming months, whether such resilience will continue remains to be seen.
For more insights and analysis, read the full PropertyGuru Singapore Property Market Index Q1 2021 report:
Or, read past Property Market Index Reports from 2020:
PropertyGuru Singapore Property Market Index Q4 2020
Article • November 2020
PropertyGuru Singapore Property Market Index Q3 2020
Collection • August 2020
PropertyGuru Property Market Index Q2 2020 Report
Article • May 2020
PropertyGuru Property Market Index Q1 2020 Report
Article • February 2020
