_Residential Market Update Q1 2024

Homebuyers more selective with more choices available

April 23, 2024

Based on flash estimates by the Urban Redevelopment Authority (URA), prices of non-landed private homes (excluding Executive Condominiums (ECs)) rose 6.5.% in 2023, easing from the 9.9% and 8.1% price expansion registered in 2021 and 2022 respectively. More new units were completed returning balance to the undersupplied market of the last two years, and as such prices grew by a more moderate 2.2% q-o-q in Q4 2023.

In the CCR, the highlight during the quarter was the healthy take up of Watten House which sold 31 out of the 180 units during its official launch. This was after 102 units were sold in an exclusive private preview last November. In all, 74% of units in the development have been sold. Singaporeans and permanent residents (PR) made up the majority of buyers, suggesting underlying local demand for homes in the prime areas for owner occupation, especially in neighbourhoods where popular schools are located.

Islandwide leasing contracts for non-landed private homes totalled 12,084 in January and February 2024, a 4.2% increase when compared to October and November 2023, but 5.2% lower than the same period in 2023.

Although the pace of sales in the private residential market slowed, homebuyers were still able to identify value opportunities and acquire suitable properties for owner-occupation. With interest rates expected to tamper down sometime in 2024, this could perhaps be the catalyst that will inject fresh activity in the market, spurring homebuyers to step out from the sidelines.

Full report here