Despite soaring new launch prices, will buying now promise future capital appreciation?
Post-COVID Singapore saw an unprecedented surge in home prices:
- Rising construction costs;
- Rising labour costs;
- Increase in compliance costs;
- New URA rules – Harmonization of floor areas, which reduces overall saleable area.
Will today's high be tomorrow's low?
OCR new launch prices hit a new peak every few years (see below).
OCR new launches
RCR new launch prices hit a new peak every few years (see below).
RCR new launches
CCR new launch prices hit a new peak every few years (see below).
CCR new launches
Why do Singapore home prices continue to rise?
- Land scarce Singapore = Rising land cost;
- Higher GLS prices by tender translate to higher launch prices (see below);
Condo average land price vs launch price
- Even EC land costs are climbing fast, due to limited supply (see below);
EC average land price vs launch price
- Developers’ land buying sprees are seasonal (see below);
Government land sales ($bil) vs unsold units
OCR new launch prices hit a new peak every few years after the developers’ land buying sprees (see below);
OCR new launches
RCR new launch prices hit a new peak every few years after the developers’ land buying sprees (see below);
RCR new launches
CCR new launch prices hit a new peak every few years after the developers’ land buying sprees (see below);
CCR new launches
Disclaimer
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For avoidance of doubt, ERA Realty Network and its salespersons accept no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval.
