In 2021, as the world actively managed the COVID-19 pandemic, the residential property market performed exceptionally well, recovering in tandem with the economy. The property market saw many highlights last year, with the most prominent undoubtedly being the private residential resale market. Throughout 2021, a total of 19,962 units were sold in the resale market, a new high in 11 years since 19,196 units were transacted in 2010.
The boom in the private resale market can be attributed to several factors, such as ample liquidity in the market, low interest rates, and pent-up buying demand, including from HDB upgraders seeking to capitalize on the thriving HDB resale market—by selling their HDB flats and realizing profits to purchase private homes. An economic recovery and concerns over construction delays for new projects also contributed to the strong sales in 2021.
Driven by robust transaction volumes, property prices rose, recording a 10.6% increase in 2021—the largest year-on-year growth since prices climbed 17.6% in 2010. Rising land costs also contributed to the firming of property prices, with newly launched properties setting benchmark prices.
However, due to differences in locational attributes, price growth across the island was uneven, with some areas seeing larger gains while others lagged. Surprisingly, the top-performing districts in 2021 were not located in the Core Central Region (CCR).
Figure 1: 2021 vs. 2020: Fastest Appreciating Singapore Districts Over the Past Year
AnjiaSG’s research used the average transacted prices of resale deals by postal district to identify the top five fastest-growing districts with the most significant price appreciation from 2020 to 2021.
The districts with the highest price increases over the past year were Districts 4, 6, 7, 10, 14, 15, and 21 (see Figure 1). Based on caveats lodged, District 6 (High Street, commonly known as Parliament Lane, and Beach Road) emerged as the top performer, with the average resale price of non-landed homes growing by 23.9% year-on-year in 2021. While the growth rate is substantial, only 5 caveats were lodged in 2021, compared to 1 in 2020—the sparse transaction volume means the price growth may not be representative.
Excluding District 6, the other districts ranked from second to sixth saw year-on-year growth rates ranging from 8% to 20% in 2021. Interestingly, with the exception of District 10, most districts on the list are located in the Rest of Central Region (RCR). This is not surprising, as the RCR’s proximity to the city and relatively attractive entry prices compared to CCR homes are favored by many owner-occupiers and investors.
When assessed over a 10-year period, the ranking of districts with the fastest average resale price growth changes significantly (see Figure 2).
Figure 2: 2021 vs. 2011: Fastest Appreciating Singapore Districts Over the Past 10 Years
District 6 once again topped the list, with a price increase of 1004% from 2011 to 2021. However, the low transaction volume may have inadvertently skewed the pricing. Ranking second is District 7 (again), with a 10-year average price growth of 103%. The remaining districts on the list are Districts 21, 2, 20, and 26, with average resale values increasing by 27% to 36% from 2011 to 2021.
Districts in the suburbs, or Outside Central Region (OCR), namely District 20 and District 26, beat popular districts like District 10 and District 11 (not on the list), with respectable growth rates of 29.4% and 27% respectively. While improved infrastructure and transport networks may have helped support values in these areas, rising land costs and higher new launch prices would also have pushed up resale prices.
The Most Profitable Singapore Districts Over the Past 10 Years
Price growth rates, which present value in percentage change, may not accurately reflect capital gains. To address this, AnjiaSG’s research evaluated average resale prices on an absolute quantum basis to identify the most profitable districts over the past 10 years (see Figure 3).
Figure 3: 2021 vs. 2011: Singapore Districts with the Highest Capital Gains Over the Past 10 Years
Apart from District 6, which was previously identified as an outlier, the most profitable districts from 2011 to 2021 include Districts 2, 7, 10, 9, and 21. All of these districts are located either in the city center or on the city fringe.
According to AnjiaSG’s analysis, homeowners in District 7 who held their property since 2011 and sold it in 2021 enjoyed an average capital gain of nearly S$1.2 million. This was followed by city-center homes in Districts 10, 9, and 2, which saw average capital gains of over S$735,000, S$635,000, and S$468,000 respectively over the same period.
Key Takeaways from the Study and What Homeowners Can Expect in 2022?
From this study, it appears that resale homes on the city fringe, such as in Districts 7 and 21, tend to enjoy better prospects in terms of price growth and capital gains—as they were featured in all three analyses conducted by AnjiaSG’s research (Figures 1-3). Recent new launches in Districts 7 and 21 may have helped to support resale values. Some new projects launched in these districts include The M, Midtown Bay, Midtown Modern, The Linq@Beauty World, Forett At Bukit Timah, and Ki Residences At Brookvale.
Homes in the RCR and OCR are expected to remain popular among Singaporean homebuyers, especially HDB upgraders. With the introduction of cooling measures in December 2021 that put pressure on foreigners and investors, Singaporean buyers may find good buying opportunities in the CCR, a region that tends to attract foreign buyers. For this, buyers with tighter budgets might consider resale properties, as new launch prices are expected to remain quite high due to continuously rising land prices and construction costs.
Looking ahead, AnjiaSG expects overall private residential prices to increase by 3% to 5% for the whole of 2022, a much slower pace than the 10.6% growth seen in 2021.
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