Private home prices edge up 0.5% q-o-q in 3Q2023: URA flash estimates
Private home prices in Singapore increased by 0.5% q-o-q in 3Q2023, an increase from the 0.2% q-o-q decline recorded in 2Q2023 following the introduction of cooling measures in April. This growth, however, remains significantly lower than the average quarterly price increase of 2.1% recorded in 2022.
Ismail Gafoor, CEO of PropNex Realty, notes that the growth momentum of private home prices has slowed significantly in recent quarters, reflecting caution within the market as people assess the impact of the cooling measures on housing demand and buyers take a wait-and-see approach to their real estate purchases. Additionally, activity was softened by the traditional lull during the lunar seventh month in August and September.
Private residential sale transaction volumes fell 15% q-o-q to 4,569 in 3Q2023, 26% lower y-o-y. The growth in private home prices was underpinned by non-landed properties, which saw a 2.1% q-o-q rise in their prices. Homes in the Outside Central Region (OCR) were largely responsible for this growth, leading the way with a 5.1% q-o-q increase in prices, followed by the Rest of Central Region (RCR), which grew 2.3% q-o-q.
In contrast, condo prices in the Core Central Region (CCR) fell 2.6% q-o-q, extending the 0.1% decrease recorded in the previous quarter. The segment remains affected by the additional buyer’s stamp duty rates for investors and foreigners, as well as a recent money-laundering investigation.
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The landed private property market also moderated in 3Q2023, with prices sliding 4.9% q-o-q. This break in the eight-quarter streak of price growth reflects weak demand in the segment.
Cushman & Wakefield is maintaining its full-year 2023 price growth forecast of 2%-5% for private residential properties, believing the market to remain resilient. Likewise, JLL’s Chia Siew Chuin anticipates local demand for private housing to remain healthy with the potential launches of projects like Watten House, The Hill @ one-north, Hillock Green in Lentor Central, and J’Den in Jurong East in October and November. However, with 19 projects already launched in 2023 and pent-up demand likely satiated, buyers may be increasingly price-sensitive in the face of a weakened economy and higher interest rates.