2021 was a great year for real estate in Singapore. Property prices rose on average by more than 10%. The question on everyone’s mind is whether this would continue in 2022. What would be the outlook for property investment in Singapore? Also, it would be important to understand the latest trends in the market.
If you are planning to invest in property this year, then all this information will help you. To make your work easy, we have compiled information on property investment trends for 2022.
Property Investment Trends
In 2021, there was a 57% increase in property transactions from the previous year. The total sales added up to 2 billion US dollars. It is estimated that in the period 2022 to 2027, the real estate market would grow by 3.2%. The real estate market in Singapore is competitive with both local and foreign players.
The housing market’s growth has spurred the sector and there are new projects in the offing. Some of the prominent trends that would make an impact on the market are listed below.
1) Increase in demand
The demand for housing is increasing. At the same time, there is a shortage in supply. This has led to the price increase and this trend is expected to continue. People are looking for bigger homes because of work from home and other issues. There is a demand for condos and luxury properties. Property prices are going to go up and buying now may help you save money.
2) Resale value continues to increase
The HDB or Housing and Development Board flats drove the real estate growth in 2021. Private properties also grew during the year. The resale value of flats is going up. People see houses as assets. When there is an appreciation in the price, they are willing to sell to make a profit. Transactions in resale will continue to go up in the years to come. This is good for property investors who can expect better profits in the future.
3) Liquidity is a key factor
The Singapore economy is doing well. The healthy liquidity is driving the country’s economy. As a result, income is increasing and families are ready to invest money in properties. Apart from first home purchases, there is also a demand for second homes. The growth in the resale market is also a factor that is motivating people to buy. The luxury market that includes condos and luxury homes is likely to see a big boost in the days to come.
4) En Bloc sales will rise
There were decreased en bloc purchases in the past few years. But it is expected that this will change. Developers would use URA land sales and en bloc properties, so they can have a diversified portfolio. It is expected that this year and in the years to come, the en block market will significantly increase.If you are looking for a great real estate investment idea, you can consider buying a flat in Grand Dunman. This condo development offers a host of amenities with an excellent blend of modern development with natural spaces.
