SINGAPORE: In the third quarter of 2024, the landed home market saw a notable slowdown, with sales volume decreasing by 3.7% quarter-on-quarter, totalling 414 transactions.
According to property consultancy Huttons in a report from the Singapore Business Review, many buyers held off on purchases during the Lunar Seventh Month.
They anticipated a possible interest rate cut later in September.
Buyers more cautious
An influx of new non-landed property launches also influenced the landscape, prompting potential buyers to explore their options more thoroughly.
Among the various property segments, detached homes faced the sharpest decline, with transactions plummeting from 46 in Q2 to just 27 in Q3.
Semi-detached homes also experienced a decrease, albeit more moderate, with sales slipping from 136 to 130.
As a result of the reduced transaction volume, the overall transaction value fell significantly, down 11.8% year-on-year to approximately $2.1 billion.
In terms of pricing, landed homes in Q3 ranged widely, with 99-year leasehold properties priced between $0.5 million and $14.2 million, while 999-year and freehold options reached from $1.6 million to an impressive $20 million.
The most affordable sale was a semi-detached home at $0.5 million, whereas the highest-priced transaction was a freehold property in Clementi Park that fetched $20 million.
Districts 13, 15, 16, 19, and 28 emerged as the most sought-after areas for landed homes during the quarter, reflecting shifting buyer preferences in a changing market.
On the commercial/investment fronts
On the other hand, Singapore’s commercial property market is holding steady, driven by robust demand for office spaces and a steady stream of investment inquiries, according to the Q3 2024 Global Commercial Property Monitor, as reported by the Singapore Business Review.
This account highlights a bright outlook, thanks to favourable credit conditions and ongoing investor interest, despite some challenges in specific sectors.
Demand for office space remains strong, showing a net balance of +25, up from +18 last quarter.
Overall occupier demand for commercial properties is also healthy, with a net balance of +6, reflecting sustained interest in available listings.
The supply of rental properties is encouraging, as evidenced by a net balance of +14 from respondents who noted adequate availability.
On the investment front, interest is thriving, with a net balance of +30, indicating a surge in inquiries—nearly double the previous quarter’s +17.
Credit conditions have notably improved, with a net balance of +33, a significant jump from +9, suggesting that financing options for the commercial property sector are increasingly favourable.