Key Points:
- Private housing prices in Singapore experienced a slight decline of 0.4% quarter-on-quarter in 2Q2023, the first decrease in three years.
- The dip in prices can be attributed to cooling measures and rising interest rates, limiting affordability and making buyers more price-resistant.
- Non-landed properties saw a 0.5% quarter-on-quarter decrease, while prices of landed properties grew by only 0.1%.
- Rest of Central Region (RCR) witnessed a significant price drop of 2.6% quarter-on-quarter, while Core Central Region (CCR) prices increased by 0.3% and Outside Central Region (OCR) prices grew by 1.2%.
- Competitive pricing of major RCR project launches and cautiousness among buyers contributed to the decline in prices.
- Foreign buying activity decreased, and local buyers remain cautious due to economic conditions and interest rates.
- Experts believe home prices have reached their peak and are likely to stabilize in the coming quarters.
- CBRE maintains a private home price growth forecast of 3% for 2023, while Edmund Tie expects property prices to trade sideways for the next one to two quarters.
- A moderate rise in property prices of 3% to 5% is predicted for the year, driven by upcoming launches and estimated new private home sales.
Key Takeaways:
- Cooling measures and rising interest rates have led to a slight decline in private housing prices in Singapore.
- Prices of non-landed properties dropped, while prices of landed properties experienced minimal growth.
- The Rest of Central Region (RCR) saw a significant price decrease, while the Core Central Region (CCR) and Outside Central Region (OCR) had slower growth.
- Buyers are cautious, both local and foreign, due to economic conditions and financing constraints.
- Experts believe home prices have peaked and will stabilize, with a moderate price correction expected.
- The market is expected to trade sideways in the near term, with a moderate rise in property prices forecasted for the year.