More high-end condo units are being sold in the suburbs.
New pricing levels appeared to be emerging in the suburb region. Non-landed residential property prices in the Outside of Central Region (OCR) increased 10% year over year in Q1 this year, reaching a new high.
New City Fringe condo prices have topped $3,000 per square foot.
Last year, around 2,800 condo units in the Rest of Central Region (RCR) were sold for at least $2,000 psf, with about 1,000 units exceeding $2,500 psf. For their unique features, creative designs, and unrivaled location, buyers paid top money for these condo units.
In the central-north region, price expectations may vary.
With several new homes selling for more than $1,800 per square foot in Potong Pasir two years ago, this price level became a precedent for following launches in other city peripheral locations.
Price outlook
Property prices may be affected by inflationary pressures and supply chain interruptions caused by the Ukraine conflict. Last year, strong demand from HDB upgraders and plentiful liquidity resulting from huge stimulus packages offered across the world boosted housing prices. Cost pressures are likely to become more important in deciding the direction of future housing prices in the coming months. Inflation and rising living costs may drive housing prices to climb even more. As a result, the market's price growth could move from "demand-driven" to "cost-driven."