Singapore private home price hike slows to 1.4% in Q1

This was from the 2.8% increase recorded in the prior quarter.

The price escalation of private homes in Singapore moderated from 2.8% q-o-q in 4Q23 to 1.4% q-o-q in 1Q24. On a y-o-y basis, prices trended up by 4.9%. 

According to JLL, the slower price increase reflects the cautious stance among homebuyers towards lofty price levels amid slower wage growth and soft economic conditions. Still, despite the tempered price growth, the sustained uptrend in prices amidst a decline in overall sales volume underscores the resilience of underlying demand, reflecting the healthy state of household liquidity.

Here’s more from JLL:

Landed properties continued to drive the overall price growth, although rising at a slower rate of 2.6% q-o-q in 1Q24, following a 4.6% q-o-q growth in 4Q23. Landed home prices were mainly bolstered by firm demand from local buyers, limited supply and high construction costs. The non-landed segment saw a further deceleration in price growth, with a marginal increase of 1.0% q-o-q compared to a 2.3% q-o-q increase in 4Q23.

Price appreciations were seen across all three market segments, with the CCR leading with a 3.4% q-o-q rise, extending the 3.9% q-o-q climb in 4Q23. The public release of Watten House in 1Q24 continued to lift market sentiment in the CCR, which translated into higher median prices for ongoing projects including Leedon Green, Perfect Ten and Midtown Modern. While foreign buyers have been sidelined by the ABSD hike, local buyers continue to see value in owning residential homes in the CCR.

In the OCR, prices of private non-landed homes were relatively stable, edging up slightly by 0.2% q-o-q in 1Q24. This price stability was supported by demand from local resident owner-occupiers and HDB flat upgraders, who are largely unscathed by the cooling measures. The rise in HDB resale prices by 1.8% q-o-q in 1Q24, the strongest growth in five quarters also contributed to this trend, benefiting those looking to upgrade to private residential properties.

However, the extent of price increase for non-landed private homes in the OCR was capped as buyers have become more price sensitive. The 27.8% q-o-q jump in new sales in the OCR in 1Q24 along with firm prices for new projects at around $2,100-$2,200 psf helped keep prices steady. This stability came after a normalisation in prices following the robust sales and price performance of J'den in in 4Q23.

In 1Q24, demand and prices for some OCR projects remained positive as seen in the units sold and the median prices achieved during the quarter. Examples include Lentor Mansion (sold 408 units / $2,269 psf), Hillhaven (sold 79 units / $2,067 psf), Lentoria (sold 60 units / $2,129 psf) and The Botany at Dairy Farm (sold 59 units / $2,019 psf).

The Rest of the Central Region (RCR) also displayed price resilience. Prices of private non-landed homes in the RCR inched up by 0.3% q-o-q in 1Q24, rebounding from a previous quarter’s decline of 0.8%. This uptick was underpinned by the new launch of The Arcady at Boon Keng, a freehold project with an average price of $2,570 psf in January. Examples of other ongoing new projects in the RCR that registered a slight rise in median prices in 1Q24 included Terra Hill (up 6.0% q-o-q to $2,779 psf), The Reserve Residences (up 4.4% q-o-q to $2,554 psf) and Blossoms by the Park (up 3.2% q-o-q to $2,589 psf).