Singapore Q1 private home transactions down 2.4% to 4,230 units

There were over 1,100 units sold in the primary market.

According to the Urban Redevelopment Authority, in 1Q24, total transactions of private homes (excluding Executive Condominiums or ECs) in Singapore fell to 4,230 units, a 2.4% drop from the previous quarter. 

The slowdown reflects the effects of the cooling measures imposed in April 2023, elevated interest rates and the inertia to high prices amid soft economic conditions.

In the primary market, JLL notes that a total of 1,164 new private homes were sold in 1Q24, up 6.6% q-o-q, mainly lifted by an impressive take-up rate of 75% achieved by the new launch of Lentor Mansion in March in the Outside Central Region (OCR). 

“Besides continued interest in the Lentor neighbourhood as well as the project’s offerings and locational advantage, the relatively smaller price quantum ranging from $1.15 million to $3.5 million is generally palatable to buyers. This suggests that there is some level of confidence among buyers despite the general cautious sentiment. It also shows that buyers are still drawn to projects that offer strong product quality and desirable locational attributes,” said Ms Chia Siew Chuin, Head of Residential Research, Research & Consultancy, Singapore.

Here’s more from JLL:

However, on a y-o-y basis, new home sales declined by 7.3% from 1,256 units in 1Q23. This was mainly weighed down by lower new home sales in the Core Central Region (CCR) in 1Q24 due to the lack of major new project launches there and the Additional Buyer’s Stamp Duty (ABSD) hike in April 2023.

Over the past year, potential homebuyers have become increasingly cautious, prompted by successive rounds of market cooling measures, economic challenges and elevated financing costs. With a greater array of choices and rising prices, homebuyers are now more discerning and price-sensitive, resulting in slower sales as they deliberate longer before committing to a purchase.

In the secondary market, sale transactions continued to fall in 1Q24 – a third consecutive quarter of decline, with 3,066 units sold during the quarter as compared to 3,242 units that changed hands in the previous quarter. Besides the tentative market conditions, the drop in resale volume was also due to the mismatch of price expectations between buyers and sellers.

While total private residential transactions slowed 2.4% q-o-q in 1Q24, the latest available data on the URA Real Estate Information System (REALIS) showed that transactions involving non-permanent residents (non-PR) foreign buyers, fell more significantly, by 34.8% q-o-q, to only 43 units in 1Q24. Purchases by non-PR foreign buyers accounted for just 1.0% of total private transactions in 1Q24, sliding from the 6.4% registered in 1Q23. Non-PR foreign buyers are largely deterred by the prohibitive 60% ABSD that they are required to pay for any residential property purchase since 27 April 2023.