Property sale market's price index jumps 5.07% QoQ in Q1

HDB flats increased faster in their price index compared to other property types.

The price index of the property sale market jumped 5.07% quarter-on-quarter (QoQ) in the first quarter of 2022, Property Guru’s Property Market Report revealed.

Looking at property types, HDB resale flats saw a 3.4% QoQ increase in their price index (128.69) mainly due to low supply caused by “construction delays for both private developments and HDB housing.”

The analyst said the appetite for HDB resale flats is driven by HDB upgraders and buyers affected by the Build-to-Order flat construction delays.

“Many HDB upgraders who are flush with cash are now in the market, buying larger HDB flats or entry-level condominium units. As such, we may see another robust year for the HDB resale market, with a high number of million-dollar HDB flat transactions,” PropertyGuru said.

The price index of private property, on the other hand, did not rise quickly as HDB flats, with non-landed and landed private property prices increasing to 119.70 (17.21% year-on-year [YoY]) and  120.81 (22.69% YoY), respectively throughout 2021.

PropertyGuru said the slower growth in prices of private property is because of “higher quantum,” leaving less room for increase.

Across districts, District 9 (Orchard/River Valley) had the biggest growth in medium prices, increasing 8.79% QoQ in the fourth quarter.

The same district, particularly the Hougang neighbourhood, also had the highest number of transactions with 1,704 at a medium price of $518,444.

Meanwhile, unlike the price index, supply and demand indices for the property sale market both dipped by 11.47% and 21.58%, respectively.