Landed Rentals tracking rising Resale PSF but Volumes down 60-70%YoY

Hi, firstly, a word about the new cooling measures which see lowering of loan quantum limits and loan-to-value limits for HDB units, plus a 15-month wait out period for private property owners intending to switch to HDB resale units: It’s not surprising that the government is trying to apply the brakes to the most socio-politically sensitive property segment that has witnessed 27 straight months of PSF growth until Sep 2022. As HDB property continues to wane in its qualities as an investment property in how it attracts more and more regulation, we expect the other private residential and non-residential property segments to be the beneficiaries of these monies, assuming these monies are not considering alternative asset classes.

Back to this week’s examination of the 1) landed resale market, and 2) landed rental market.

1) Resale Market (Singapore-wide Landed)
Between Sep 2021 to Sep 2022:
a. Average PSF grew 18.2% YoY ($1,516 PSF to $1,792 PSF);
b. Volumes are down 74.6% YoY (303 transactions to 77 transactions).

Between Aug 2022 to Sep 2022:
a. Average PSF grew 5.3% MoM ($1,702 PSF to $1,792 PSF);
b. Volumes are down 49.3% MoM (152 transactions to 77 transactions).

In Sep 2022, the 3 projects with the most resale transactions were Villa Verde: Terrace (5), Seletar Hills Estate: Semi-D (4), Sennett Estate: Terrace (4). Details of all 119 transacted estates by volume are included in the PDF below.

2) Rental Market (Singapore-wide Landed)
Between Sep 2021 to Sep 2022:
a. Average yield hovered 1.3% YoY (2.07% to 2.10%);
b. Volumes are down 61.8% YoY (110 transactions to 42 transactions).

Between Aug 2022 to Sep 2022:
a. Average yield fell 8.8% MoM (2.30% to 2.10%);
b. Volumes are down 60.4% MoM (106 transactions to 42 transactions).