Singapore's Private Housing Prices Experience First Decline in Three Years

Singapore's Private Housing Prices Experience First Decline in Three Years

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.

(Source)

Back to blog