The private residential market in Singapore witnessed a robust 2.7% quarter-on-quarter surge in the last quarter of 2023, propelling the full-year growth to 6.7%. Despite a 27% quarterly drop in transaction volumes, the market ended on a high note with three key projects leading the charge: Hilllock Green, J’den, and Watten House.
Summary:
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Private residential prices rose by 2.7% in 4Q2023, contributing to a 6.7% growth for the entire year.
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Notable projects Hilllock Green, J’den, and Watten House accounted for over 50% of developer sales in 4Q2023.
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Transaction volumes dropped 27% quarterly, but the market remained strong with local buyers constituting 98.5% of purchasers.
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J’den emerged as the top-selling new launch with 327 units sold, followed by Hillock Green and Watten House.
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ERA Realty CEO, Marcus Chu, highlighted the April ABSD hike as a challenge, but local buyers returned in 4Q2023, offering a promising outlook.
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Future supply from the Government Land Sales (GLS) program is expected to moderate prices in 2024. Developers may sell 7,000 to 8,000 units, with prices increasing 3% to 5%.
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ERA projects resale prices to grow up to 6% YoY in 2024, supported by upcoming new home completions.
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Knight Frank expects a two-tier pricing situation between primary and secondary markets, with prices increasing by 3% to 5% in 2024.
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URA warns of elevated mortgage rates, and Barclays Bank suggests new cooling measures if price pressures rise.
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Interest rate trends will be crucial, with up to 38 new projects and 11,590 units slated for launch in 2024.
The private residential market exhibited resilience, overcoming challenges like the April ABSD hike. Notably, new launches played a pivotal role, with projects like J’den, Hillock Green, and Watten House driving sales and contributing to the upward trajectory in prices. Local buyers, constituting the majority, have signaled confidence, pointing to a positive trend. The future, however, may see a moderation in prices due to increased supply from the GLS program, creating a two-tier pricing situation. External factors like interest rates will be closely monitored.
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Source: EdgeProp