Why is there a looming downside risk in private home markets?

Possible stagflation because of the Russia-Ukraine conflict may greatly affect the market.

There could be downside risks for private residential markets in Singapore following the softer economic outlook and possibility of stagflation that might be aggravated by continued Russia-Ukraine conflict, OCBC said in its latest equity research.

Citing the Urban Redevelopment Authority’s (URA) Private Residential Property Index (PPI), OCBC also noted that the private home prices in Singapore went up 10.6% in 2021. It added that the URA Private Residential PPI also rose by 14.1% from its last trough in the first quarter of 2020.

Even as December 2021 new property cooling measures will likely dampen consumer sentiment and demand, OCBC underscored that the private residential market will remain resilient, especially for first-timers and upgraders demand, due to the unrevised Additional Buyer's Stamp Duty rates for Singapore citizens and Singapore permanent residents.

On transactions, the number of private new home sales, except for executive condominiums, increased 30.5% to 13,027 units in 2021, which was the strongest level since 2013.

However, OCBC said historically, “volume changes have been more sensitive and volatile than price changes” because potential buyers may choose to adopt a wait-and-see approach.

Follow the link for more news on

OCBC Bank

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia