Non-landed private homes transactions rise to 25.9% QoQ in Q2

There were 5,844 units sold during the quarter.

The pause has finally ended for Singapore's private residential market, with the volume of non-landed homes sold increasing by 25.8% QoQ to 4,844 units in Q2 2022. The figure excludes Executive Condominiums (ECs).

According to Knight Frank, the rebound was on the back of multiple headline new launches in the primary market.

Non-landed primary sales rebounded by 43.1% q -o-q in Q2 2022 with 2,383 units sold, a recovery from the 42.6% q-o-q plunge in Q1 2022 sales. 

There were only 48 units launched in Q1, whilst there were 760 units launched in Q2, Knight frank explained.

The secondary or resale market also boosted transactions in Q2 with 3,461 units sold which translates to a 16.3% QoQ increase.

Transactions in the secondary market also exceeded primary sale volumes by some 45.2%.

What drove the "Unabated intrinsic demand"  in the secondary market were " buyers seeking ready-to-move-in units," according to Knight Frank.

Meanwhile, Prices of non-landed private homes also rose during the quarter, increasing by 3.3% QoQ. 

Across markets, the Rest of Central Region recorded the highest price increase in Q2 at 6.0% QoQ, followed by  Outside Central Region (1.7%), and Core Central Region (CCR) (1.6% QoQ).

Looking ahead, Knight Frank expects prices to increase around 5% to 7% for the whole of 2022 

"Activity could taper in the coming months with rising interest rates acting as a natural cooling measure in H2 2022, reining in homebuyer affordability," Knight Frank said.