New Reporter
02-04-24, 12:34
Singapore’s private home price growth slows to 1.5% in Q1 as sales fall 20%: URA
Apr 1, 2024
PRIVATE home prices in Singapore continued to rise in the first three months of 2024, chalking up 1.5 per cent growth following a 2.8 per cent advance in the last quarter of 2023, according to government data on Monday (Apr 1).
Prices remained on an uptrend despite a 20 per cent slide in sales volume last quarter, reflecting market resilience, said Chia Siew Chuin, JLL’s head of residential research, research and consultancy.
Knight Frank Singapore research head Leonard Tay said: “Private home prices in the new launch market are expected to continue to be elevated, due to committed land and construction costs.”
However, prices are showing signs of stabilisation ahead of an expected incoming supply of about 10,000 private homes in 2024, he said.
Tricia Song, CBRE’s head of research for Singapore and South-east Asia, said: “We see increasing buyer selectiveness amid uncertain economic conditions, and average private home prices have risen 34.5 per cent since Q1 2020.
https://i.imgur.com/oMX8dRd.png
“Negative news flow from a slew of company layoffs, albeit globally, could have further dented buying sentiment to start the year,” she added.
In the first quarter, landed home prices continued to outperform other sectors, moving up by 3.4 per cent after a 4.6 per cent increase in Q4, according to the Urban Redevelopment Authority (URA)’s latest data.
Prices remain supported by local upgrading aspirations, limited supply and heightened construction costs, said Wong Xian Yang, Cushman & Wakefield’s head of research for Singapore and South-east Asia.
Islandwide, the prices of non-landed homes rose 1 per cent overall in Q1, moderating from the 2.3 per cent increase in the previous quarter.
The rise in price was mainly driven by the Core Central Region (CCR). Prices were up by 3.1 per cent, after a 3.9 per cent gain in the fourth quarter.
The top non-landed home transactions in the CCR were resale deals of two units at The Ritz-Carlton Residences Singapore Cairnhill, which each fetched S$16.5 million – S$5,397 per square foot (psf) – noted Ismail Gafoor, chief executive officer of PropNex Realty.
Cuscaden Reserve, which was relaunched on Mar 16, may also contribute to a “slight increase” in the CCR price index, having so far sold 80 units at an average price of slightly above S$3,000 psf, he added.
In the suburban Outside Central Region (OCR), prices of non-landed homes increased at a slower pace of 0.4 per cent in Q1, after having jumped 4.5 per cent in Q4.
https://i.imgur.com/ZmnZnCL.png
Lee Sze Teck, senior director of data analytics at Huttons Asia, pointed to strong sales at Lentor Mansion being likely to push up prices in the OCR.
According to URA caveats, some 402 units – or three-quarters of the Lentor project – were sold at its mid-March launch at an average of S$2,278 psf, making it the best-performing new launch so far this year, noted PropNex.
Non-landed property prices in the city-fringe or Rest of Central Region (RCR), meanwhile, recovered from a 0.8 per cent decline in Q4 of 2023, edging up by 0.2 per cent in Q1.
“Prices are stabilising, particularly in the RCR and OCR, with new sales hovering at around S$2,500 psf, and resale at about S$1,700 psf in the RCR, and around S$2,200 psf and S$1,400 psf for new and resale OCR homes,” Gafoor said.
Knight Frank’s Tay said the market could “perhaps even plateau in certain segments” as demand becomes more measured with increasing new supply.
In Q1 2024, Singaporeans and PRs accounted for 98.6 per cent of private home buyers; foreigners made up 1.1 per cent. There were 35 purchases of residential homes by foreigners in Q1, down from 66 in Q4, Huttons’ Lee noted.
Total transaction volume in Q1 stood at 3,482 units, down 20 per cent from the 4,334 units in Q4, and 16 per cent lower than in the year-ago quarter.
“This continues the trend of declining transaction volume, where total yearly transaction volume for 2023 was already the lowest since 2016,” URA said.
The transaction volume tally comprises new sales, resales and subsales, and excludes executive condo units.
Marcus Chu, ERA Singapore’s chief executive officer, 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 said: “Others are deferring their home purchases, hoping for better deals if interest rate cuts materialise in the second half of 2024.”
OrangeTee Group chief researcher and strategist Christine Sun expects prices to grow at a steady rate of around 3 to 6 per cent in 2024.
She expects between six and nine large projects (with over 500 units each) to be launched this year. In comparison, four large projects (excluding ECs) were launched in 2021, one in 2022, and six in 2023, she said.
URA will update its figures on Apr 26, when it releases its full set of property market data for Q1.
https://www.businesstimes.com.sg/property/singapore-s-private-home-price-growth-slows-1.5-q1-sales-fall-20-ura
Apr 1, 2024
PRIVATE home prices in Singapore continued to rise in the first three months of 2024, chalking up 1.5 per cent growth following a 2.8 per cent advance in the last quarter of 2023, according to government data on Monday (Apr 1).
Prices remained on an uptrend despite a 20 per cent slide in sales volume last quarter, reflecting market resilience, said Chia Siew Chuin, JLL’s head of residential research, research and consultancy.
Knight Frank Singapore research head Leonard Tay said: “Private home prices in the new launch market are expected to continue to be elevated, due to committed land and construction costs.”
However, prices are showing signs of stabilisation ahead of an expected incoming supply of about 10,000 private homes in 2024, he said.
Tricia Song, CBRE’s head of research for Singapore and South-east Asia, said: “We see increasing buyer selectiveness amid uncertain economic conditions, and average private home prices have risen 34.5 per cent since Q1 2020.
https://i.imgur.com/oMX8dRd.png
“Negative news flow from a slew of company layoffs, albeit globally, could have further dented buying sentiment to start the year,” she added.
In the first quarter, landed home prices continued to outperform other sectors, moving up by 3.4 per cent after a 4.6 per cent increase in Q4, according to the Urban Redevelopment Authority (URA)’s latest data.
Prices remain supported by local upgrading aspirations, limited supply and heightened construction costs, said Wong Xian Yang, Cushman & Wakefield’s head of research for Singapore and South-east Asia.
Islandwide, the prices of non-landed homes rose 1 per cent overall in Q1, moderating from the 2.3 per cent increase in the previous quarter.
The rise in price was mainly driven by the Core Central Region (CCR). Prices were up by 3.1 per cent, after a 3.9 per cent gain in the fourth quarter.
The top non-landed home transactions in the CCR were resale deals of two units at The Ritz-Carlton Residences Singapore Cairnhill, which each fetched S$16.5 million – S$5,397 per square foot (psf) – noted Ismail Gafoor, chief executive officer of PropNex Realty.
Cuscaden Reserve, which was relaunched on Mar 16, may also contribute to a “slight increase” in the CCR price index, having so far sold 80 units at an average price of slightly above S$3,000 psf, he added.
In the suburban Outside Central Region (OCR), prices of non-landed homes increased at a slower pace of 0.4 per cent in Q1, after having jumped 4.5 per cent in Q4.
https://i.imgur.com/ZmnZnCL.png
Lee Sze Teck, senior director of data analytics at Huttons Asia, pointed to strong sales at Lentor Mansion being likely to push up prices in the OCR.
According to URA caveats, some 402 units – or three-quarters of the Lentor project – were sold at its mid-March launch at an average of S$2,278 psf, making it the best-performing new launch so far this year, noted PropNex.
Non-landed property prices in the city-fringe or Rest of Central Region (RCR), meanwhile, recovered from a 0.8 per cent decline in Q4 of 2023, edging up by 0.2 per cent in Q1.
“Prices are stabilising, particularly in the RCR and OCR, with new sales hovering at around S$2,500 psf, and resale at about S$1,700 psf in the RCR, and around S$2,200 psf and S$1,400 psf for new and resale OCR homes,” Gafoor said.
Knight Frank’s Tay said the market could “perhaps even plateau in certain segments” as demand becomes more measured with increasing new supply.
In Q1 2024, Singaporeans and PRs accounted for 98.6 per cent of private home buyers; foreigners made up 1.1 per cent. There were 35 purchases of residential homes by foreigners in Q1, down from 66 in Q4, Huttons’ Lee noted.
Total transaction volume in Q1 stood at 3,482 units, down 20 per cent from the 4,334 units in Q4, and 16 per cent lower than in the year-ago quarter.
“This continues the trend of declining transaction volume, where total yearly transaction volume for 2023 was already the lowest since 2016,” URA said.
The transaction volume tally comprises new sales, resales and subsales, and excludes executive condo units.
Marcus Chu, ERA Singapore’s chief executive officer, 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 said: “Others are deferring their home purchases, hoping for better deals if interest rate cuts materialise in the second half of 2024.”
OrangeTee Group chief researcher and strategist Christine Sun expects prices to grow at a steady rate of around 3 to 6 per cent in 2024.
She expects between six and nine large projects (with over 500 units each) to be launched this year. In comparison, four large projects (excluding ECs) were launched in 2021, one in 2022, and six in 2023, she said.
URA will update its figures on Apr 26, when it releases its full set of property market data for Q1.
https://www.businesstimes.com.sg/property/singapore-s-private-home-price-growth-slows-1.5-q1-sales-fall-20-ura