SINGAPORE: Private home prices in Singapore went up again last year, although not as much as in 2021 and 2022. The prices of private residences rose by 6.7 per cent in 2023, compared to 8.6 per cent in 2022 and 10.6 per cent in 2021.
In contrast, the increase was 2.2 per cent in 2020, just slightly higher than the 2.7 per cent in 2019.
For the fourth quarter of 2023, prices rose by 2.7 per cent on the back of recently launched projects such as J’den in Jurong East, Hillock Green in Lentor, and Watten House in Bukit Timah.
The biggest winner among the launches was CapitaLand’s J’den, where 327 of the 368 units, or 89 per cent, were sold at S$2,475 per square foot on average. This has set a new benchmark price for condominiums in Singapore’s suburbs.
Meanwhile, at UOL Group’s luxury condominium Watten House, on average, 114 out of the 180 units were sold at S$3,209 per square foot.
On Jan 2 (Tuesday), the Urban Redevelopment Authority (URA) released flash estimates for the last quarter of the year, showing a 2.7 per cent increase compared to just 0.8 per cent the previous quarter, when transactions had decreased by 27 per cent.
Ms Christine Sun, the senior vice president of research at OrangeTee & Tie, commented on URA’s latest numbers and is quoted in real estate research site Mingtiandi as saying:
“Property prices in Singapore have slowed down considerably (in 2023), ending the pandemic-induced surge. The increased supply of completed condos has already helped to stabilize prices substantially, and we anticipate this trend to continue in 2024.”
Higher interest rates, slower economic growth, and increased duties on housing transactions are why fewer people took the risk of buying homes last year.
Prospective home buyers may wait for the “perfect” housing project to fit their needs. This may well occur this year as more property launches are scheduled.
Industry experts predict that price growth in 2024 will be more muted than in recent years, with the new launches providing stiff competition that will allow competitive pricing.
“In 2024, we are of the view that 15 notable projects should go to market in the year: five in the CCR, one in the RCR, and nine in the OCR.
In the first six months of 2024, property prices are anticipated to remain high yet stable. Demand, while subdued, should maintain a consistent upward trajectory,” noted PropertyGuru after URA released its flash estimates. /TISG
Read also: 2024 Outlook for Singapore’s Property Sector, and Top S-REITs to Look Out For
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