Private Housing Further Moderates 11 Q O Q Growth 2Q2024 Ura Flash Estimates
of $3,651 psf in August 2018
URA’s flash estimates confirmed that private residential property prices continue to increase, although the pace of growth has slowed slightly in the second quarter of 2024. According to the flash estimates released today, prices have increased by 1.1% quarter-on-quarter, which is a moderation from the 1.4% increase in the previous quarter.
In the non-landed market, prices have grown by 0.9% last quarter, compared to a 1% increase in the first quarter of this year. Overall, the private property market saw a total of 4,215 sales transactions in the second quarter of 2024, almost matching the 4,230 transactions recorded in the first three months of the year. To stay updated on the latest new launches and transaction prices, check out the listings online.
The latest quarterly increase in private property prices was mainly driven by a decline in prices within the Core Central Region (CCR). Prices of private non-landed homes in the CCR dropped by 0.2% quarter-on-quarter, as compared to a 3.4% increase in the previous quarter.
According to Eugene Lim, the key executive officer of ERA Singapore, this decline in prices may be attributed to downward price revisions in several luxury projects, such as Cuscaden Reserve and The Residences at W Singapore Sentosa Cove. This has sparked more buying activity in the luxury market, which has been suppressed due to the increase in Additional Buyer’s Stamp Duty (ABSD) rates for foreigners in April 2023.
On the other hand, prices in the Rest Central Region (RCR) grew by 2.2% in the second quarter of 2024, higher than the 0.3% growth recorded in the previous quarter. Meanwhile, the Outside Central Region (OCR) saw prices grow by 0.3% quarter-on-quarter, remaining stable from the 0.2% increase in the first quarter of this year.
Leonard Tay, the head of research at Knight Frank Singapore, attributes the price growth in the RCR and OCR to the high costs of construction and land prices committed 12 to 18 months ago in the new launch market. The lack of sales in the new launch market could also have put downward pressure on the overall price index.
Based on URA caveats, the number of new home sales (excluding Executive Condos) fell by 41.4% quarter-on-quarter to 679 units in the second quarter of 2024, from 1,158 units in the first quarter of this year.
As for the landed property market, prices have moderated further with a recorded quarterly growth of 1.8% in the second quarter of 2024, compared to a 2.6% increase in the previous quarter.
According to Knight Frank’s Tay, there is still demand for landed homes from Singaporeans looking to upgrade their housing aspirations, with limited supply in land-scarce Singapore. Most landed home sellers have been reluctant to decrease their asking prices and price premiums, resulting in buyers snapping up available properties listed at or slightly below their market valuations.
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Lee Sze Teck, the senior director of data analytics at Huttons Asia, estimates that the market could see up to 16 new launch-ready projects in the second half of 2024, injecting a total of 7,571 new units into the market. Some of the upcoming launches include Kassia and SORA this month.
If current market conditions continue, Lee predicts that developers may sell up to 6,500 new homes by the end of the year and an overall price growth of up to 4%. You can find the latest listings for Cuscaden Reserve and The Residences at W Singapore Sentosa Cove properties online.