Singapore non-landed home prices increase by 6.5% in 2023

Prices grew at a moderate pace of 2.2% in Q4.

Based on flash estimates by the Urban Redevelopment Authority (URA), prices of non-landed private homes (excluding Executive Condominiums (ECs)) rose 6.5% in 2023**, easing from the 9.9% and 8.1% price expansion registered in 2021 and 2022 respectively.

According to Knight Frank, more new units were completed returning balance to the undersupplied market of the last two years, and as such prices grew by a more moderate 2.2% q-o-q in Q4 2023**.

Here's more from Knight Frank:

The muted sentiment since Q3 2023 continued to prevail in the residential market as sale transactions for non-landed private homes dropped 25.0% q-o-q to 3,622 in Q4 2023*. The lower transaction volume was expected due to the holiday period, with many developers generally holding off new launches in the last month of the year. For the entire year 2023, the total transaction volume was 17,389*.

New sales volume contracted 43.2% q-o-q with 1,086 units sold, and sales in the secondary market declined 13.1% q-o-q with 2,536 transactions recorded in Q4 2023*. With interest rates expected to fall only from the second half of 2024, some homebuyers are adopting a watch-and-wait posture until more certainty prevails in the borrowing rate environment.

Core Central Region (CCR)

• In the CCR, the highlight during the quarter was the healthy take up of Watten House which sold 31 out of the 180 units during its official launch. This was after 102 units were sold in an exclusive private preview last November. In all, 74% of units in the development have been sold. Singaporeans and permanent residents (PR) made up the majority of buyers, suggesting underlying local demand for homes in the prime areas for owner occupation, especially in neighbourhoods where popular schools are located.
• Nevertheless, the success of one project does not necessarily indicate a trend, as new sales in the prime residential districts declined 54.0% to 97 in Q1 2024*. It was also reported that 80 units were also sold at the newly completed Cuscaden Reserve with prices cut by some 20%, to average slightly over S$3,000 psf during a relaunch exercise. Secondary sales formed the bulk of transactions in the CCR with 400 homes in Q1 2024*. This brought total sales in the CCR to 497* in the quarter.
• Prices of non-landed homes in the CCR grew 3.1% q-o-q and 4.2% y-o-y in Q1 2024**, with much of the growth attributed to the strong take-up rate of new sale transactions.

Rest of Central Region (RCR)

• Prices of non-landed homes in the RCR rose 0.2% q-o-q but declined 1.0% y-o-y in Q1 2024**. The modest price growth in the quarter could be attributed to the sole launch of The Arcady at Boon Keng which achieved a reported average price of S$2,570 psf for the 51 units (or about 30%) sold on the launch weekend.
•   Total sales declined 18.2% q-o-q to 928 transactions, with new sales decreasing 10.1% q-o-q to 204 and secondary market volume falling 20.3% q-o-q to 724 in Q1 2024*.
   

Outside Central Region (OCR)

• Non-landed home prices in the OCR grew 0.4% q-o-q in Q1 2024**, moderating from the 4.5% q-o-q gain in the Q4 2022. The price expansion was backed by the new launches of Lentor Mansion and Lentoria. There were 400 units (75% out of the 533 units) sold at Lentor Mansion during its launch weekend, boosting new sale transactions in OCR to 775 in Q1 2024*, an increase of 20.2% q-o-q from the previous quarter.
• The total sales in the OCR dipped 9.5% q-o-q with 1,951 sales, and secondary sales fell 22.1% q-o-q to 1,176 transactions in Q1 2024*.
  
  *based on data available as at 5 April 2024. Figures exclude Executive Condominiums (ECs).
  **based on flash estimates announced on 1 April 2024.