Home prices rise for 4th consecutive quarter despite slower sales

SINGAPORE: The price of homes in Singapore went up for the fourth consecutive quarter despite sales slowing down.

Preliminary figures released by the Urban Redevelopment Authority on Monday (July 1) show, however, that while the overall private residential property price index rose by 1.4 per cent in the first quarter of the year, its increase had moderated slightly, at only 1.1 per cent for the second quarter of 2024.

Perhaps more significantly, the quarterly average price increase of 1.3 per cent in the first half of 2024 is lower than the quarterly average price increase of 1.7 per cent in 2023 and 2.1 per cent in 2022.

The URA said that the Government will release a total supply of 11,110 private residential units throughout the year through the Government Land Sales Programme to continue to cater to housing demand and maintain market stability.

This is the highest number of private residential units since 2013.

On June 25, the Ministry of National Development said in a statement that the Government Land Sales Programme for the second half of 2024 will yield about 8,140 private residential units, 113,650 sqm gross floor area of commercial space, and 530 hotel rooms.

The MND said in its announcement that the housing market has shown signs of stabilization, and that price momentum has eased, but added that the government is set to keep on catering to housing demand and maintain market stability.

“The Government will continue to release a steady supply of private residential units over the next few years, with supply calibrated to account for prevailing economic and property market conditions,” said the ministry.

It added that the supply is from a good mix of sites across different geographical regions, offering various housing options to meet different needs and preferences.

Read also: Housing supply for 2nd half of 2024 to see big increase as market stabilizes

Bloomberg noted that continued price gains over the past four quarters reflect local spending power “despite a broader slowdown in sales in a market that boomed through the pandemic.”

Over the past few years, Singapore’s red-hot property market has caused the government to impose several curbs, including additional stamp duties of 60 per cent for non-Singaporean residential property buyers.

Before April 27, 2023, they only needed to pay 30 per cent ABSD.

Singapore is the third most expensive city globally in which to own property, according to a report from Swiss private banking corporation Julius Baer released last week. /TISG

Featured image: Depositphotos

Read also: HDB resale prices rose 2.1% in Q2 amid strong demand and supply constraints