The fourth quarter of 2023, the cost of homes that are used for private purposes in Singapore was up 2.7 percent. This was due primarily to the sales of new launches at benchmark prices, and the low volume of transactions.

A surge in Q4 prices has driven the price index higher from 0.8% to 0.8 percent increase in the third quarter to an 6.7 percent increase by the final quarter of the year. It’s a slight reduction from an 8.6 percent increase in 2022, or an increase of 10.6 percent rise in 2021.

Tan Tee Khoon, the PropertyGuru Singapore Country Manager is Tan Tee Khoon. He stated that the price fluctuations between 2023 and 2024 suggest that the value of homes that are used by private people has reached its highest point.

Tricia Song CBRE’s Head of Research for Singapore and South-east Asia, is Tricia Song. Tricia Song, CBRE’s director of research for Singapore as well as South-east Asia stated that prices for homes being sold by homeowners who are private have increased for seven years in a row since the low was reached in mid-2017.

Based on Song the price hikes within the Outside Central Region (OCR) were much more than the Rest of Central Region (RCR) which experienced an increase of 2.7 percent rise. The primary Core Central Region (CCR) prices also increased by 2.1 percent.

The cost of condos for private owners in OCR increased by 4.6 percent, quarter on quarterly (qoq) after an increase of 5.5 percent rise in the previous quarter. Prices in CCR increased by only 4.2 percent, however they rebounded from a drop of 2.7 percent in the previous quarter.

At the time they launched two launches in particular have seen remarkable numbers. CapitaLand’s J’Den in Jurong East was sold out of 323 units at an average of $2,451 per square foot. UOL’s Watten House in Bukit Timah and SingLand Watten House, located in Bukittimah, each sold 100 units at an average of S$3,230 per square. foot.

Based on Cushman and Wakefield research chief Wong Xian Yang, the two projects contributed to about half of the new sales made within the OCR and CCR segments, respectively during the fourth quarter of 2004.

RCR prices dropped by 1.2 percent in Q4 after increasing by 2.1 percent during the prior quarter. The One Pearl Bank Condo in Outram is also sold out.

Analysts have said that a decrease in sales over the course of the year, and during the fourth quarter and slow price increases outside of OCR indicate an increase in buyers’ resistance to prices that are too high.

Discover more about Newport Residences Pricing

Wong who is an analyst with Cushman & Wakefield Analyst, said that prices for non-landed goods are at historic record highs. The trend will continue until the end of Q4 2023.

Knight Frank’s head of research Leonard Tay stated that despite the fact that household balance sheets are in good shape Buyers are and will continue to be prudent when it comes to their choices for homes.

Lee Sze Teck – Huttons director of analysis and data analysis – said that the record-breaking sales during the Q4 launch demonstrated “ample capacities” for buyers from the local market, despite the fact that foreign buyers didn’t purchase due to the rise in Additional Buyers Stamp Duty (ABSD) that was introduced in April of last year.

In the fourth quarter of 2004, Singaporeans, as permanent residents, and foreigners together comprised 98.5 percent of those who bought homes privately.

Lee stated that ABSD was launched in December of 2011. The government introduced ABSD for the first time in its history.

According to the most recent figures published by the Urban Redevelopment Authority, the total value of transactions in private homes was down 27 percent from in the third quarter of last year. This amounts to 3800 houses.

The total number of units sold over the last year were 18,510, a decrease of 15% from the 21 890 units in 2022. The figure doesn’t include executive condos.

The final quarter of 2018 witnessed an increase in the value of the value of landed properties by 4.5 percent. This was a change from a decline of 3.6 percent in the prior quarter. By 2023 the cost of homes that are landed will increase by 7.8 percent, which is up from the 9.6 percent that was in 2022.

According to Knight Frank Tay, the need for freehold land is “evergreen”. “The principal issue to ensure that deals are completed successfully is the lack of inventory readily available.”

Ismail Gafoor, the CEO of PropNex Realty, is Ismail Gafoor. He said that the small increase in sales of detached houses could be the reason for the 4.5 percent growth. The fourth quarter of 2018, there were 43 detached houses as opposed to 39 in the third quarter.

According to the Chief Executive Officer of ERA Marcus Chu, more landed contracts were canceled because of a price stalemate between sellers and buyers.

Analysts forecast that prices will continue to fall from 3 to 5 percent annually.

CBRE’s Song said that the current price hikes will continue to deter market. CBRE analyst stated that prices will keep slowing down in 2024 due to an increase in stock. Due to the strength of household balance sheets and the limited amount of un-sold inventory.

According to Tay, the price for HTML0’s launch will be “higher” because of the construction and land costs that are already incurred.

PropNex Gafoor believes that developers should determine their pricing “more efficiently” to boost sales during the weekend of launch.

Tay said that investors who are interested in capital preservation and appreciation, in addition to regular income, are likely to remain on the sidelines until interest rates reach their peak or stabilize and possibly decline, and also until there is more clarity on the economic outlook.

Source: https://www.businesstimes.com.sg/property/private-home-prices-27-q4-taking-full-year-rise-67

Home investors can look forward to the attractive launch price of Newport Residences.