Prime home prices rise 3.5% in 2021

In 2022, analysts expect prices to rebound by 2.0%.

Prime home prices in Singapore only increased by 3.5% in 202, behind the average growth of 8.2%, Knight Frank said in the latest issue of its The Wealth Report.

The 3.5% increase also trailed behind the overall sizeable growth of 10.6% for all Singapore private residential properties in 2021, according to the analyst/

This puts Singapore in the 70th position in Knight Frank’s Prime International Residential Index 100 (PIRI 100).

Knight Frank cited the government’s “decade’s worth of watchful measures” as the key reason why prime homes prices did not escalate as fast as other cities in the index.

Apart from government measures, Knight Frank said prolonged and recurring travel restrictions have also inhibited foreign investors’ interest in purchasing homes in Singapore, resulting in a decline in the number of units bought by foreign buyers at 3.6% in 2020 and 3.4% in 2021.

There was also a lack of new launches in the top-tier class of homes in Singapore for much of 2021, the analyst added.

In 2022, Knight Frank expects prime residential prices to rebound by a milder 2.0% “as buyers adjust to the newly imposed cooling measures.”