{"id":50107,"date":"2022-03-31T16:38:12","date_gmt":"2022-03-31T08:38:12","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=50107"},"modified":"2022-06-13T17:59:25","modified_gmt":"2022-06-13T09:59:25","slug":"impact-property-sector-q1-2022-cooling-measures","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/impact-property-sector-q1-2022-cooling-measures\/","title":{"rendered":"How different properties performed in Q1 2022 after 16 Dec\u2019s cooling measures"},"content":{"rendered":"
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It’s the last day of March, which also means the end of Q1 2022. URA’s official real estate quarterly statistics for Q1 2022 won’t be released until the end of next month. The agency will release flash estimates in early April, so that’s something to look forward to.<\/p>\n

While we speculate on what those numbers may be, let’s look at some data so far and examine how different property types (HDB resale, private condo, ECs, landed housing) have performed before and after 16 December 2021’s cooling measures<\/a> restrictions.<\/p>\n

HDB Resale<\/h2>\n

\"HDB<\/a><\/p>\n

Between October and December 2021, HDB resale flats in the Core Central Region (CCR) saw average psf price dip by 2.60%. After December’s cooling measures, the average psf price seems to have gone back up by 2.02% across the quarter.<\/p>\n

Similarly, flats in the Rest of the Central Region (RCR) like Toa Payoh, Bishan, Dawson and Telok Blangah, have seen a continued rise in average psf prices quarter to quarter. So does this mean the cooling measure’s restrictions have had no impact at all?<\/p>\n

Far from it:<\/p>\n\n\n\n\n\n\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n\n
HDB Resale<\/strong><\/td>\n<\/tr>\n
<\/td>\nOct-Dec 2021<\/strong><\/td>\nJan-March 2022
\n<\/strong>(as of 30 March)<\/strong><\/td>\n		<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\nAverage psf price change<\/strong><\/td>\nVolume<\/strong><\/td>\nAverage psf price change<\/strong><\/td>\nVolume<\/strong><\/td>\nVolume change<\/strong><\/td>\nVolume in Q1 2021<\/strong><\/td>\nVolume change from Q1 2021<\/strong><\/td>\n<\/tr>\n
CCR<\/strong><\/td>\n-2.60%<\/td>\n65<\/td>\n2.02%<\/td>\n54<\/td>\n-16.92%<\/td>\n71<\/td>\n-23.94%<\/td>\n<\/tr>\n
RCR<\/strong><\/td>\n3.04%<\/td>\n1417<\/td>\n2.02%<\/td>\n1172<\/td>\n-17.29%<\/td>\n1382<\/td>\n-15.20%<\/td>\n<\/tr>\n
OCR<\/strong><\/td>\n2.30%<\/td>\n6068<\/td>\n1.26%<\/td>\n5093<\/td>\n-16.07%<\/td>\n5694<\/td>\n-10.55%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

While average psf price appreciation has remained fairly positive, including some spikes in some months, don’t let that fool you.<\/p>\n

The impact of the cooling measures is felt most in terms of transaction volume.<\/p>\n

For example, HDB resale flats Outside of the Central Region (OCR) saw their volume drop from 2,016 in January to 1,542 and 1,532 in February and March respectively<\/strong>. Quarter-to-quarter, the drop has been in the range of 16-17%, but we should discount part of the slowdown on the lull over the Christmas and Chinese New Year seasons.<\/p>\n

So we compared Q1 2022 volume against the same quarter (as of 30 March 2021) last year and the drop is still significant: between 10.55 and 23.94%.<\/p>\n

Granted, the HDB resale market caters more for Singaporeans and PRs – who are mostly first-time homebuyers. This group is the least affected by the cooling measures especially the Additional Buyers’ Stamp Duty (ABSD). However, there is still some discernible effect, if we consider the lower Total Debt Servicing Ratio (TDSR) and HDB housing loan LTV limit.<\/p>\n

Potential HDB sellers or upgraders may be hesitant, as they delay selling their flats to upgrade to condos. It’s also possible that the drop in psf price or volume is cushioned (as compared to private condos) as Singaporeans and Singaporean PRs choose to buy HDB resale flats instead of condos due to tightened loans limits.<\/p>\n

–<\/p>\n

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HDB resale flats for sale in Toa Payoh<\/h4><\/div>\n
See all listings<\/a><\/span><\/div>\n <\/div>\n
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\n \"261\n <\/div>\n
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261 Toa Payoh East<\/div>\n
Singapore 310261 \u00b7 D12<\/div>\n
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\n \"bedroom\"\n 3<\/span>\n <\/div>\n
\n \"bathroom\"\n 2<\/span>\n <\/div>\n
\n 1,001 sqft<\/span>\n <\/div>\n <\/div>\n
S$ 1,200,000<\/div>\n <\/div>\n
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