In the fourth quarter of 2023, the upward trajectory of residential property prices in Singapore persisted, particularly evident in the private housing sector where prices surged at an accelerated rate compared to the previous quarter.
This surge was primarily driven by robust activity in new property launches, which attracted significant interest from prospective buyers.
Conversely, the public housing resale market experienced a slowdown in price growth momentum during the same period. According to data from PropNex, the moderation in price growth was attributed to increasing price resistance among buyers and a prevailing cautious sentiment in the market.
These observations were consistent with the flash estimates compiled by PropNex, which tracked property transactions up until mid-December.
Despite the notable uptick in private home prices, there were signs of a deceleration in growth momentum, particularly in the public housing resale segment.
This trend reflected a degree of hesitancy among buyers, possibly influenced by economic uncertainties or concerns about the sustainability of price increases.
Looking ahead, industry analysts are eagerly awaiting the final print for the entire fourth quarter of 2023, which is scheduled for publication on January 26, 2024.
This comprehensive data release is expected to provide a more detailed and accurate assessment of the overall performance of the residential property market during the period.
The ongoing trends observed in the Singapore property market underscore the complex interplay of various factors influencing buyer behavior and market dynamics.
Economic conditions, government policies, and shifts in consumer sentiment all play crucial roles in shaping the trajectory of property prices and market activity.
Despite the challenges posed by the evolving market landscape, Singapore’s property market remains resilient, underpinned by robust demand and a well-regulated real estate ecosystem.
However, stakeholders in the industry, including developers, investors, and policymakers, must remain vigilant and adaptable to navigate potential risks and capitalize on emerging opportunities in this dynamic environment.
Singapore Private Home Prices Surge by 2.7% in Q4
Flash estimates from the Urban Redevelopment Authority (URA) revealed a significant uptick in private home prices during the fourth quarter of 2023. Overall private home prices soared by 2.7% quarter-on-quarter (QOQ), marking a notable acceleration from the 0.8% QOQ increase recorded in the previous quarter.
This surge propelled cumulative private home prices to a 6.7% rise throughout 2023, albeit moderating from the 8.6% growth observed in 2022.
Landed Home Segment Rebounds
The landed homes segment experienced a swift recovery in Q4 2023, with prices surging by 4.5% QOQ. This robust growth overturned the 3.6% QOQ decline witnessed in the previous quarter, marking the strongest quarter of price escalation since Q1 2023.
The resurgence in landed home prices was particularly buoyed by a slight uptick in detached house transactions, with the average price per square foot on land area experiencing a notable increase of approximately 16% QOQ to $1,714.
Non-Landed Homes Segment Performance
In contrast, the non-landed homes segment witnessed a 2.2% QOQ increase in prices during Q4 2023, following a similar growth trajectory in the previous quarter.
This uptick was primarily driven by new project launches in both the Core Central Region (CCR) and Outside Central Region (OCR), fueling price growth in these areas.
OCR Market Dynamics
Non-landed home prices in the OCR surged by 4.6% QOQ in Q4 2023, building on the 5.5% QOQ growth seen in the preceding quarter. Notably, new project launches such as J’den and Hillock Green played a pivotal role in driving mass-market prices higher, with J’den emerging as the best-selling new private residential project in Q4 2023.
CCR and RCR Trends
Meanwhile, non-landed prices in the CCR climbed by 4.2% QOQ, reversing the decline observed in the previous quarter. This robust growth was fueled by new launch projects such as Watten House, Klimt Cairnhill, and Midtown Modern.
Conversely, non-landed home prices in the Rest of Central Region (RCR) dipped by 1.2% QOQ, likely due to the absence of fresh project launches in this sub-market.
Sales Transaction Volume
The URA reported a total of 3,800 private homes sold in Q4 2023, compared to 5,201 units in the previous quarter. New home sales for the year are expected to underperform those of 2022, with approximately 6,400 new private homes sold in the year-to-date period.
Resale private volume is also anticipated to fall below 2022 levels, with an estimated 10,850 units sold over the same period.
Overall, the real estate market in Singapore continues to exhibit resilience, with price growth in both the landed and non-landed segments contributing to a positive outlook for the sector.
