SINGAPORE: 2024 may be a better year for tenants as the rental market is expected to show signs of a “gentle” slowdown, says top real estate site PropertyGuru. This is due to a fresh supply and more and more projects getting completed, making it easier for people to acquire homes, which will put downward pressure on rental rates.
“The rental sector is projected to experience a gentle deceleration. Although the Singapore housing market’s performance might appear relatively uneventful, its inherent stability is likely to resonate favourably with both investors and homeowners,” PropertyGuru said in its Singapore Property Market Outlook 2024 on Monday (Dec 18).
As a recap for 2023, the company pointed out that there has been a decline in private residential property sales because of cooling measures and elevated interest rates, and the HDB resale market has also shown a slower increase in pricing and transaction volume.
Notably, there has been continued interest in million-dollar flats, with 369 transactions in the first ten months of the year, the same number for all of 2022.
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As for the near future, PropertyGuru says, “In the ensuing six months, property prices are anticipated to remain high yet stable. The residential property market is poised to display heterogeneous performances, with homes offering good value likely to garner more pronounced demand.”
Here are some highlights of the report:
- First-time home buyers may tend to be more cautious in 2024 and may not make decisions on purchases until there are housing projects that serve their needs. Others may delay until they are more financially capable.
- However, those who bought new condominiums in 2018 and 2019, who are likely exempt from Seller’s Stamp Duty (SSD), may sell their property at appreciated rates.
- The property market may be driven mainly by owner-occupiers.
- Wealthier individuals may continue to purchase second properties, incorporating this year’s Additional Buyer’s Stamp Duty (ABSD) rates as part of their acquisition costs.
- There has been a noticeable trend of buying inclination towards properties in the Outside Central Region (OCR) near MRT stations and a shift among buyers toward larger HDB flats or those in prime locales.
Dr Tan Tee Khoon, the Country Manager for PropertyGuru in Singapore, said, “Despite the deceleration in market activity amidst the evolving economic landscape, the promise of sustained economic growth supports the continuity of robust property prices. Singapore’s real estate is traditionally viewed as a resilient investment. Given this perspective, the prevailing uncertainty could, in fact, inspire more individuals to engage in the property market, provided their financial positions permit.”
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