_Residential Market Update Q4 2023
Singapore private home market cooled by end-2023
January 10, 2024
Highlights
- New sales volume contracted 43.2% q-o-q with 1,086 units sold, and sales in the secondary market declined 13.1% q-o-q with 2,536 transactions recorded in Q4 2023*. With interest rates expected to fall only from the second half of 2024, some homebuyers are adopting a watch-and-wait posture until more certainty prevails in the borrowing rate environment.
- In the year ahead, prime non-landed home prices are unlikely to grow in any significant fashion as buyers are not exhibiting the same urgency as in the past few years. Given the current slowdown in this market segment, price movement is expected to be flat between -1% and 2% in 2024, most likely at the negative end of the range.
- Prices of non-landed homes in the RCR increased 2.7% in 2023**, easing from the 9.7% gain in 2022. Although prices decreased 1.2% in Q4 2023**, the price growth throughout the year was supported by new launches that included Grand Dunman, The Continuum and The Reserve Residences, setting new price benchmarks in their respective neighbourhoods.
- Despite new launches such as J’den in Jurong East and Hillock Green at Lentor Central, new sales in the OCR declined 9.0% q-o-q to 639 in Q4 2023*. Overall sales decreased 12.8% q-o-q to 1,959 units in Q4 2023*, with secondary sales decreasing 14.6% q-o-q to 1,320 transactions*. J’den was the top selling project in Q4 2023, demonstrating that homebuyers remain drawn to attractive projects with a compelling growth narrative, even if there is a premium in prices.
- Islandwide leasing contracts for non-landed private homes totalled 11,358 in October and November 2023, a decrease of 26.7% when compared to July and August 2023, and 10.7% lower than the same period in 2022.
Read the full report here.