Singapore residential market stabilises as home demand and median prices level out

SINGAPORE: The Singapore residential market stabilises as home demand and median prices level out.

PropertyGuru reports that demand for homes and median prices have settled around the levels observed in the previous quarter, indicating a period of relative stability.

Singapore Business Review reported that PropertyGuru’s analysis reveals that the Demand Index, which tracks inquiries for home sale listings on their platform, has been moving in a narrow range since the third quarter of 2023 through the first quarter of this year.

However, the demand for homes has decreased by 17% compared to the same period last year.

In addition, PropertyGuru’s Price Index reveals that median asking prices for homes saw a modest increase of 1% year-on-year in the last quarter and a 2.1% increase compared to the previous quarter.

On the flip side, there’s been a rebound in supply, with a 5.6% jump in the first quarter following a slight dip in the preceding three months.

Looking ahead, PropertyGuru anticipates a continuation of the high-price, low-demand situation, as sellers appear to be in no rush to sell their properties.

“Transaction volumes in 2024 are expected to align with 2023 levels or potentially end up lower,” PropertyGuru noted.

Meanwhile, rental housing is starting to cool off. The report notes a decline in asking rents as demand weakens, suggesting a shift in the rental market dynamics.

Recent data also sheds light on the moderation in home price growth. In the first quarter of this year, Singapore saw a 1.4% quarter-on-quarter increase in home prices, down from 2.8% in the previous quarter.

Recent data also indicates a 1.4% quarter-on-quarter increase in home prices in the first quarter of this year, down from 2.8% in the previous quarter. /TISG

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