Singapore's private residential market, after experiencing the whirlwind of the Covid-19 housing boom, is now entering a phase of stability. The demand-supply dynamics are recalibrating, with housing supply catching up with demand. As we anticipate the trends that will shape the private property market in 2024, here are the key takeaways:
1. Modest Price Growth Amid Market Stability
- Despite tightened measures and increased housing supply, modest price growth is expected in 2024.
- Economic recovery, improving employment, and resilient household balance sheets contribute to positive market sentiment.
- Interest rate drops predicted for 2024 could strengthen household affordability.
- Housing demand may remain resilient, supporting an estimated 16,000 to 19,000 private home transactions.
2. Surge in New Home Sales and Project Launches
- Anticipate a robust line-up of 31 project launches in 2024, offering over 12,000 new private homes.
- Developers likely to stagger launches, with at least 23 projects releasing around 8,800 units.
- Suburban areas may see significant launches, while the luxury market experiences a reduction in new launches in the CCR.
- Predicted rise in new home sales to 6,500 to 7,500 transactions, driven by large projects.
3. Suburban Resale Prices to Rise Moderately
- Resale property prices, especially in the suburbs, may moderately rise due to limited supply in 2024.
- Projected decrease in completions by 48.2%, with a substantial decline in suburban supply.
- Upward pressure on resale prices in suburban locations, with large units expected to be highly sought after.
- Overall, resale prices projected to rise by 3% to 5% in 2024.
4. Rental Market Softening Further
- Rental growth likely to slow in 2024 due to increased home completions.
- Softening rental demand as locals move into newly completed homes, causing competition among landlords.
- Potential downward pressure on rental prices in the city fringe, while OCR may experience further increases.
- Overall, rents expected to slow from the peak growth of 29.7% in 2022 to 2% to 5% in 2024.
In Conclusion: The Singapore private property market in 2024 presents opportunities and challenges. Navigating this landscape requires staying informed. If you're considering property investments, looking to buy or sell, or simply want to stay updated on market trends, reach out to us. Our team is here to guide you through the evolving real estate scenario.
Source: The Straits Times - Key Private Property Market Trends to Watch in 2024