What boosted private home prices in 1Q23?

In 1Q, prices rose by 3.3%.

Two main factors drove the increase in private home prices in the first quarter of the year, according to PropertyGuru.

The first growth driver was sustained price growth in the Outside Central Region (OCR).

Data from PropertyGuru showed that prices in the OCR rose 1.9% in 1Q. Boosting the prices in the OCR were major launches like Sceneca Residence, which sold 60% of its units, and The Botany at Dairy Farm which sold 48% of its units.

“The sustained growth in HDB resale prices likely motivated those who have recently fulfilled their Minimum Occupation Period (MOP) to put their HDB flats for sale. Flush with cash, these HDB upgraders turned their attention towards new launches in the OCR, which hit a sweet spot between price and size,” PropertyGuru said.

Another factor that contributed to the overall price increase is the moderate price growth in the Rest of Central Region (RCR) and Core Central Region (CCR) for non-landed properties.

Prices in RCR and CCR rose 4.4% and 0.8%, respectively.

“The modest price growth in the RCR and CCR endures in the face of an uncertain macroeconomic outlook. Locals and foreign investors continue to seek safe havens to park their wealth, which is driving price growth in the current challenging climate. Uncertainty in equity markets has motivated investors to reroute funds from buying stocks to real estate, especially amid record-high rental prices,” the expert said.