Singapore non-landed private home sales likely to hit record lows since 2008

New sales are expected to reach around 4,000 units in 2024.

In a report, Knight Frank said that the announcement of a 50-basis point interest rate cut in September 2024 by the US central bank could prove to be the shot-in-the-arm needed to move Singapore’s private residential market. 

“Notwithstanding that the effects of the interest rate cut are not likely to be immediate, but will mostly be felt from next year onwards, this might just be the impetus to tip homebuyers who are presently sitting on the fence into a purchase, especially those buying for their own occupation,” the report said.

Here’s more from Knight Frank:

With the mood tentative and selective among homebuyers for most of 2024, transaction momentum in the past nine months of the year is on track to fall between Knight Frank’s expectations of 14,000 and 16,000 units. With the number of new sales likely to be about 4,000 units, 2024 could have the poorest showing since 2008 (4,264 new sales) during the Global Financial Crisis. 

It is now probable that private home prices will likely end the year gravitating towards the lower end of Knight Frank’s 3% to 5% projection, with growth due to the prices at new launches that are a function of land costs committed some 12 to 18 months ago and high construction costs.