SINGAPORE: Singapore’s suburban private housing market is set to become the focal point of the real estate landscape this year, with property consultancy OrangeTee & Tie anticipating the launch of over 4,400 new private homes outside central Singapore in the next 12 months.
The firm’s report reveals a noteworthy shift in the distribution of these launches, with 50 per cent of the 8,800 private homes (excluding executive condos) slated for release this year located in the Outside the Central Region (OCR), followed by 30 per cent in the Rest of the Central Region (RCR), and the remaining 20 per cent in the Core Central Region (CCR).
This marks a substantial increase in the percentage of suburban project launches, reaching a level not seen since 2017 when the OCR accounted for 72 per cent of private home launches.
OrangeTee emphasized that the supply of new housing in the suburbs has been constrained in recent years. The report indicates that, on average, only 3,495 condo units were launched annually from 2019 through 2023, a significant drop from the 9,860 units released each year between 2009 and 2013.
“The surge in launched units is expected to address the pent-up demand for private homes in the suburbs, potentially slowing down the pace of price growth for new condos,” OrangeTee said in its report.
Key projects to watch out for in the OCR this year, according to OrangeTee, include the 440-unit SORA, 533-unit Lentor Mansion, 512-unit Lumina Grand EC, and the 345-unit development at Champions Way.
On a broader scale, OrangeTee anticipates a moderation in the prices of private homes across the island, projecting a modest increase of 3 to 6 per cent throughout 2024. This forecast is attributed to the flurry of project launches scheduled for the year, particularly in suburban areas, which is expected to create a more balanced supply-demand dynamic in the market.
This shift in focus to suburban developments and the increase in housing supply could not only cater to the rising demand for private homes but also contribute to a more stabilized pricing environment. Observers, including both prospective buyers and sellers, will be closely watching how this surge in suburban projects will shape the overall property market in the coming months.