Singapore private residential prices record largest QoQ growth

Prices increased 2.3% in Q4 2024.

According to a Savills report, following a slight QoQ dip of 0.7% in Q3/2024, the URA property index for all private residential properties in Singapore rebounded with a quarterly increase of 2.3% in Q4/2024. This was the largest QoQ growth since Q4/2023 when prices rose 2.8%.

“The increase was attributed to a 3.0% growth in prices of non-landed homes. This was the sixth consecutive quarter of increase for non-landed home prices,” the report said.

Here’s more from Savills:

On the other hand, prices of landed properties declined for the second consecutive quarter, albeit at a much moderated pace of 0.1%, as compared to the 3.4% in the previous quarter. As such, prices of all residential properties continued to grow for the eighth consecutive year since 2017 by 3.9% for the whole of 2024. This was the slowest yearly increase since 2020 when prices rose 2.2%.

While prices of non-landed homes across all three market segments increased on a QoQ and YoY basis, prices of homes in the OCR recorded the largest QoQ increase in the final quarter of 2024, of 3.3%, followed by a 3.0% growth for RCR homes and 2.6% for CCR homes.

For non-landed homes in the CCR, the increase was a reversal from the two consecutive quarters of decline, while prices of RCR homes recorded a fourth consecutive quarter of growth. The quarterly increases for the RCR and OCR in Q4/2024 were also higher than that of the previous quarter. This may be due to the surge in new sales that uplifted the prices of non-landed homes islandwide.

For the whole of 2024, prices of non-landed homes in the RCR registered the largest increase of 5.8%, higher than the 3.1% in 2023. Similarly, non-landed home prices in the CCR rose by a larger 4.5% in 2024, in comparison to the 1.9% in 2023. On the other hand, prices of nonlanded homes in the OCR saw a lower YoY increase of 3.7% in 2024, as compared to the 13.7% in 2023.

For the past few years, the price rise for suburban homes has been relatively rapid for the past few years, but the increment has slowed in recent quarters, leading to a smaller increase for the year.

For the basket of luxury non-landed private residential projects tracked by Savills, after a dip of 0.4% in the previous quarter, prices of these properties rebounded slightly by 0.6% QoQ to S$2,596 per sq ft in Q4/2024. On a YoY basis, prices remained unchanged, after three consecutive years of increase.

Despite transaction volume remaining low due to slower demand, today, given the risk mitigating measures to prevent buyers from over leveraging (e.g. Total Debt Servicing Ratio), sellers of these properties have stronger holding power. This has held prices firm.