Private Housing Further Moderates 11 Q O Q Growth 2Q2024 Ura Flash Estimates
Private residential property prices experienced a 1.1% increase in the second quarter of 2024, slightly lower than the 1.4% increase seen in the first quarter, according to URA’s flash estimates released today. The non-landed market saw a 0.9% growth last quarter, a slight improvement from the 1% growth recorded in the first quarter. With a total of 4,215 sales transactions in the second quarter, the private housing market almost matched the 4,230 transactions seen in the first three months of the year. For the latest information on new launches and available units, be sure to browse through the latest listings.
Source: URA
The increase in private housing prices in the second quarter was mainly driven by a decline in prices in the Core Central Region (CCR). Prices for private non-landed homes in the CCR experienced a 0.2% decrease in the second quarter, compared to a 3.4% increase in the first quarter. Eugene Lim, key executive officer of ERA Singapore, believes that the drop in CCR prices could be attributed to downward price revisions in several projects, such as Cuscaden Reserve and The Residences at W Singapore Sentosa Cove. Lim also points out that the price revisions in the luxury segment have stimulated much-needed buying activity.
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“This is a positive development since the CCR market, which normally sees a large proportion of foreign buyers, has been subdued due to the increase in ABSD rates for foreigners in April 2023,” says Lim.
On the other hand, prices in the Rest Central Region (RCR) saw a 2.2% increase in the second quarter, higher than the 0.3% growth seen in the first quarter. In addition, prices in the Outside Central Region (OCR) went up 0.3% in the second quarter, remaining relatively unchanged from the 0.2% increase in the previous quarter.
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Leonard Tay, head of research at Knight Frank Singapore, believes that the price growth in the RCR and OCR could be attributed to the already elevated prices in the new launch market, which is a result of high construction costs and land prices committed to 12 to 18 months ago. The lack of sales in the new launch market may have also exerted downward pressure on the overall price index, according to Christine Sun, chief researcher and strategist at OrangeTee Group. Based on URA caveats, the number of new homes sold (excluding Executive Condos) declined by 41.4% in the second quarter to 679 units, compared to 1,158 units in the first quarter.
As for landed properties, prices increased by 1.8% in the second quarter, a slight decrease from the 2.6% growth seen in the first quarter.
“Demand for landed homes from Singaporeans moving up the housing aspiration ladder remains strong despite the limited supply in land-scarce Singapore,” says Tay. He adds that most landed homeowners have been unwilling to lower their asking prices, causing buyers to snap up properties listed at, or slightly below, their market valuations.
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According to Lee Sze Teck, senior director of data analytics at Huttons Asia, there could be up to 16 new projects scheduled for launch in the second half of 2024, injecting a total of 7,571 new units into the market. Upcoming launches this month include Kassia and SORA. If market conditions remain the same, Lee predicts that developers could potentially sell up to 6,500 new homes this year, with an overall price growth of up to 4%. Be sure to check out the latest listings for Cuscaden Reserve and The Residences at W Singapore Sentosa Cove properties.
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