Private Home Prices Dip in 3Q2024 Amid Market Stabilization

Market Sees First Decline in Private Home Prices Since 2Q2023

About Private Home Prices Dip in 3Q2024 Amid Market Stabilization | Singapore’s private residential market recorded a slight decline in prices during 3Q2024. According to the Urban Redevelopment Authority (URA), the private residential price index dropped by 0.7% quarter-on-quarter (q-o-q), a reversal after four quarters of growth. This marks the first decline since 2Q2023, contrasting with a 0.9% increase in 2Q2024.

Landed properties saw the largest dip, with a 3.4% q-o-q decline following a 1.9% rise in the previous quarter. Non-landed property price growth also slowed, showing just a 0.1% increase, down from the 0.6% growth seen in 2Q2024. According to Tricia Song, Head of Research for Southeast Asia at CBRE, this trend points to a moderation in price growth.

Price Performance Across Market Segments (Private Home Prices Dip in 3Q2024)

Among non-landed segments, the Rest of Central Region (RCR) performed best, showing a 0.8% increase. The Outside Central Region (OCR) held steady, while the Core Central Region (CCR) saw a 1.1% decrease, attributed to a slowdown in high-value transactions and an uptick in sales at a loss. SRI’s Head of Research and Data Analytics, Mohan Sandrasegeran, referred to this as part of a stabilizing market trend.

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For the first nine months of 2024, overall private property prices have increased by 1.6%, slower than the 3.9% growth in 2023 and the 8.2% surge in 2022. Despite the recent slowdown, CBRE forecasts a 3% rebound in prices for 4Q2024 due to anticipated lower interest rates and a positive economic outlook. Song expects that household resilience and low unsold inventory will keep prices stable.

Demand in OCR and New Launches Drive Transactions

Transaction volume rose by 9.3% q-o-q in 3Q2024, with 5,372 units sold, marking the highest level in 12 months. This increase is largely due to new home demand, as developers introduced 1,284 units in 3Q2024—more than twice the number in the previous quarter. New home sales also rose, with a 60% q-o-q increase, from 725 units in 2Q2024 to 1,160 units in 3Q2024.

The OCR led in transaction volume, with 715 transactions—up from 414 units in 2Q2024. The OCR also dominated the resale market, comprising 54.7% of total resale volume with 2,113 out of 3,860 units sold. According to Christine Sun, Chief Researcher at OrangeTee, affordability remains a key factor, as buyers prioritize cost-effective suburban homes. These purchases increased OCR sales but exerted downward pressure on the overall price index.

Key Project Launches in 3Q2024 (Private Home Prices Dip in 3Q2024)

More on Private Home Prices Dip in 3Q2024 Amid Market Stabilization | Three major projects launched in 3Q2024: the 440-unit Sora in Jurong Lake District, the freehold 276-unit Kassia on Flora Drive, and the 158-unit 8 @ BT along Bukit Timah Link. All reported strong sales, with Kassia and 8 @ BT achieving more than 50% take-up rates during their initial launch weekends. These robust launches reflect a renewed confidence among buyers, according to Huttons.

Notably, high-value transactions occurred at 32 Gilstead, where three units sold for over S$14.4 million each, purchased by permanent residents.

HDB Upgraders Support Private Resale Market

The private resale market saw steady growth, rising by 1.5% q-o-q, with 3,860 units sold. Huttons attributed this slower growth to competition from developer launches. A larger portion of HDB upgraders entered the private resale market, with a 20.1% increase in buyers from HDB addresses year-on-year in 3Q2024. Sandrasegeran noted this as a sign of demand for completed homes in established areas.

Upcoming Project Launches in 4Q2024 (Private Home Prices Dip in 3Q2024)

Several high-profile projects are expected to launch in 4Q2024, including the 847-unit Emerald of Katong, the 916-unit Chuan Park, the 552-unit Nava Grove, the 366-unit Union Square Residences, and the 504-unit Novo Place executive condo (EC). Marcus Chu, CEO of ERA Singapore, anticipates that these launches will push new home sales to between 5,500 and 6,500 units for 2024.

However, Leonard Tay, Head of Research at Knight Frank Singapore, remains cautious, noting that the first nine months of 2024 saw only 3,049 new home sales, a 42.8% drop from the previous year. He predicts that, even with the upcoming launches, 2024 may end with one of the lowest new home sales totals since the Global Financial Crisis in 2008.

The 3Q2024 price correction, combined with these new launches, paints a nuanced picture for the Singapore residential market as the year wraps up. Affordability, regional demand patterns, and economic shifts will play central roles in shaping future trends in the private property market.

Best Selling Developments in 3Q 2024

Project	Units Sold	Region	Median Price (psf)
Kassia	164	OCR	$2,052
Sora	111	OCR	$2,153
Pinetree Hill	89	RCR	$2,499
Hillhaven	87	OCR	$2,111
Tembusu Grand	85	RCR	$2,448
8 @ BT	83	RCR	$2,730
Hillock Green	61	OCR	$2,147
Lentoria	53	OCR	$2,182
Lakegarden Residences	44	OCR	$2,211
The Continuum	35	RCR	$2,849

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