Suburban condos and resale properties drive market activity amidst selective demand.
Private home prices in Singapore experienced a 0.7% drop in the third quarter of 2024, reversing the 0.9% growth seen in Q2. This is the most significant quarterly decline since Q1 2020, when prices fell by 1%, according to the Urban Redevelopment Authority (URA).
Suburban and Resale Properties Dominate
Buyers gravitated towards competitively priced suburban condos and resale units, dampening demand for higher-priced prime district properties. Suburban resale homes accounted for over half of all resale transactions in Q3, with 54.7% of the 3,860 transactions occurring in these areas.
Resale activity surged in 2024, with 10,351 transactions in the first nine months, compared to 8,498 during the same period in 2023. Many of these transactions were driven by HDB upgraders leveraging gains from their flat sales.
The narrowing price gap between new non-landed and resale condos—31.6% in Q3 compared to 48.9% a year ago—has further fueled resale demand.
New Launches Show Mixed Results
New project launches have seen selective demand, with notable successes in competitively priced developments:
Meyer Blue (East Coast): Sold 50% of its 226 units at an average price of $3,260 psf in October.
Norwood Grand (Woodlands): Sold 84% of its 348 units at an average of $2,067 psf.
However, overall new sales performance in 2024 remains subdued, with predictions suggesting it will be the weakest year since 2008.
Rental Market Trends
The private rental market showed signs of recovery in Q3, with rents rising by 0.8%, breaking a six-month decline. Despite this, rents for the first nine months of 2024 fell 1.9%, a stark contrast to the 11.1% growth seen during the same period in 2023.
Larger units, such as three- and four-bedroom apartments, remain in demand due to limited supply, while smaller units face rental pressures.
Looking Ahead
The property market is expected to remain cautious, with recovery in developer sales anticipated only in 2025 as global economic conditions stabilize. While rental prices may ease further in Q4 2024, they are unlikely to return to pre-2022 levels due to higher property taxes, mortgage payments, and robust rental demand.
