Past trends can provide insight on how the property market will play out in 2022 following the new property cooling measures announced last December and Huttons Asia on Jan 22, attendees raised questions on various facets of the property market and what to expect in the coming months, especially in light of the new property cooling measures announced by the Singapore government last December.
Following the m-o-m drop, the chart indicates that both average psf prices and transaction volumes rebounded and resumed an upward trajectory some eight months after measures were tightened. “Resale HDB prices stayed quite low for a pretty long period of time, all the way until the circuit breaker period,” remarks Tong. Subsequently, prices shot up on the back of higher demand, given construction delays for Build-To-Order projects.
The tool uses available data and applies assumptions to estimate developers’ costs and the corresponding psf per plot ratio price required to break even on the launch for that particular site.For example, the recent Jalan Tembusu GLS site tender which closed on Jan 18 — the first one since the new cooling measures were announced — saw City Developments emerge the top of eight bids for the site, which is located off Tanjong Katong Road in prime District 15.
Tong believes that CDL anticipates its future development on the Jalan Tembusu land, which is a 99-year leasehold site, to launch at a psf price range that is similar or close to the freehold While there are pros and cons for each option, Tong points out that from an investment perspective, buyers may want to consider how prices for new and resale units have historically appreciated over time.For private non-landed properties, Chart 3 shows a comparison between the average psf prices for new launches and resale transactions .