Divining demand, a mega mall deal, and commercial concerns

OUT of last week’s data, the paint-by-numbers picture is of a housing market damped by government curbs while higher mortgage rates gave pause to many buyers. 2022 ended with an overall price gain of 8.6 per cent in private home prices, slightly lower than the 10.6 per cent increase of 2021. Transaction volume shrank in both developers’ sales and the secondary resale market. In public housing, resale prices of Housing and Development Board flats similarly flattened and sales slowed.

Market analysts now expect private residential prices to be further tempered to about 5 per cent growth this year. That’s a far cry from the 17.6 per cent surge seen in 2010, but still faster than the 2.2 per cent rise recorded in 2020.

Addressing the real estate trade at a Lunar New Year lunch event last week, Deputy Prime Minister Heng Swee Keat reminded the audience of property companies, agencies and consultancies that the government is keeping a close eye on housing prices and borrowing, even after the market has showed signs of a slowdown.