SINGAPORE: Private home prices in Singapore have seen a 1.5% increase in the first quarter of 2024, according to the flash estimates of the Urban Redevelopment Authority (URA). This follows a 2.8% growth in the final quarter of 2023, The Business Time reports.
In addition, prices for non-landed homes rose 1% during Q1, a slowdown from the 2.3% increase in the preceding quarter. Conversely, landed property prices continued their upward trend, surging by 3.4% in Q1 after a 4.6% rise in Q4.
The momentum in price growth was most notably tempered in the suburban Outside Central Region, where non-landed home prices increased by 0.4% in Q1, compared to a substantial 4.5% surge in Q4.
Meanwhile, non-landed property prices in the city fringe or the Rest of Central Region rebounded from a 0.8% decline in Q4 of 2023, up by 0.2% in Q1.
In the prime Core Central Region, prices rose by 3.1%, slightly lower than the 3.9% gain observed in the previous quarter.
The debut of Lumina Grand, the first executive condominium launch of the year, proved highly successful. During its launch weekend, 269 units were sold at an average price of S$1,464 per square foot (psf).
Similarly, Lentor Mansion achieved significant sales, selling 400 units or 75% of its total units during its launch weekend in March. This surge in sales may increase the price index when URA updates its quarterly figures.
Singaporeans and Permanent Residents (PRs) dominated the private home buyer market, accounting for 98.6% of purchases in Q1 2024, while foreigners made up only 1.1%.
Foreigner purchases saw a notable decline, with only 35 transactions recorded in Q1, nearly half of the 66 purchases in Q4 2023.
Overall transaction volume in Q1 stood at 3,482 units, marking a 20% decrease from the previous quarter and a 16% decline compared to Q1 2023.
According to URA, this decline in transaction volume continues a trend observed in recent years, with total yearly transaction volume in 2023 hitting its lowest point since 2016.
Mr Marcus Chu, CEO of ERA Singapore, attributed this cautious approach to home purchases to various factors.
He said, “Buyers are more cautious when it comes to committing to home purchases due to a combination of factors, including looming economic uncertainty, rising retrenchment numbers and elevated interest rates.”
He noted that some buyers are delaying their purchases in anticipation of potential interest rate cuts in the second half of 2024.
Ms Christine Sun, chief researcher and strategist at OrangeTee Group anticipates a steady price growth of around 3 to 6% in 2024.
She said, “It is anticipated that between six and nine large projects, each with over 500 units, could be launched this year. In comparison, four large projects (excluding ECs) were launched in 2021, one in 2022 and six in 2023.”
The URA is set to release its full set of property market data for Q1 on April 26, providing further insights into the trends in Singapore’s real estate landscape. /TISG