Singapore Property Price Set to Explode Upwards in 2024?
TLDR Understanding the factors influencing property prices in Singapore for 2024 can help in making informed decisions. Despite high rental...
Read More
TLDR
The Urban Redevelopment Authority (URA) Flash Estimates for Q4 2022 show a 0.1% increase in non-landed private home prices quarter-on-quarter, with an impressive 8.0% rise year-on-year. The Core Central Region (CCR) saw a 0.5% price increase, while the Rest of Central Region (RCR) experienced a 2.6% boost. The Outside Central Region (OCR) had a notable 9.3% price growth. Despite challenges like revenge travel and reduced sales volume, the market outlook remains positive with upcoming new projects offering more options to buyers. Whether to buy, sell, or wait depends on individual circumstances, with strategic real estate advice and market knowledge essential for decision-making.
URA Flash Estimates
As we come two years post-pandemic, the Urban Redevelopment Authority (URA) estimates reveal a moderate 0.1% quarter-on-quarter price increase in non-landed private homes (excluding Executive Condominiums (ECs)), representing an impressive 8.0% year-on-year rise in 2022. This was largely due to robust sales of newly launched residences, primarily in suburban and fringe areas, that propelled prices to an all-time high of 18.6%.
The fourth quarter of 2022 brought a surge of revenge travel, as many potential homebuyers sought to make up for the international restrictions caused by COVID-19. Consequently, sales transactions of non-landed private homes dipped drastically, plummeting 48.3% quarter-on-quarter to just 2,884 units. With inventory in short supply, it seemed that many homebuyers chose to take a holiday before looking into prospective housing purchases.
In Q4 2022, developers released fewer new units as new sales volume contracted by a staggering 69.4%, with only 652 units sold. Meanwhile, secondary market sales declined 35.1%, registering 2,232 transactions. With an impending global recession and high interest rates, homebuyers opted to adopt a ‘wait-and-see’ attitude due to the lack of listings and the reduced transaction activities of non-landed homes.
Core Central Region (CCR)
In Q4 2022, prices of non-landed homes in the CCR rose 0.5% quarter-on-quarter and 4.6% year-on-year. Despite Singaporeans still representing the majority of non-landed homebuyers in the CCR, the share of foreign buyers increased from 8.9% in Q1 2022 to a noteworthy 15.8% in the last quarter of the year.
In spite of only a moderate rise in prices, sales in CCR experienced a sharp decrease of 33.8% quarter-on-quarter in Q4 2022*, with only 792 non-landed transactions. Newly contracted sales went down 33.0% quarter-on-quarter to 374, while resale volume experienced an even more dramatic fall of 34.5% to 418 during the same period.
Rest of Central Region (RCR)
In Q4 2022*, prices of non-landed homes in the RCR saw a noticeable boost of 2.6% quarter-on-quarter and 9.2% year-on-year, with the successful launch of properties like Piccadilly Grand and Liv @ MB throughout the year. However, overall transaction volume in the RCR decreased due to dwindling new sales, which sank 53.3% quarter-on-quarter to 170 transactions, and secondary market sales also plummeted 37.1% to 663 sales.
Outside Central Region (OCR)
The OCR shined brightest amongst all other market segments this year, boasting both impressive price growth and sales volume. Despite a slight dip in price index by 2.6% in the fourth quarter of 2022, the OCR still managed to close out the year with a notable 9.3% increase.
This remarkable price expansion throughout 2022 was driven by the strong demand for new launches in the first three quarters – until the interest rate surge pushed buyers onto the sidelines in the last quarter.
Q4 2022 was an incredibly challenging period for the OCR with new sales shrinking an incredible 91.1% quarter-on-quarter to just 108. With no new launches in the last three months of the year, overall sales were also hit hard, tumbling 57.5% to 1,259 transactions. Even secondary sales suffered a 34.2% drop, ending the quarter on 1,151 units.
Market Outlook
Despite an estimated 17,000+ new private homes slated for completion in 2023, the leasing market is unlikely to slow down due to the persistent demand in the private residential market. Moreover, those affected by the cooling measures who are forced to downscale their private home may put further pressure on the leasing market.
Homeowners have been reluctant to put their properties on the market with no new home to move into, even with price premiums being offered. Nonetheless, come 2023, 12,000 units in 34 new projects island-wide could offer some relief to the undersupplied housing situation, providing prospective buyers with an array of options in diverse locations.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
Ready To Make The Jump From HDB To Condo? This Guide Has All The Answers!
TLDR When upgrading from an HDB flat to a condo, consider factors like location proximity, amenities, and regulations. Decide whether...
Read More
3 Property Owners Reveal Their Major Mistakes: The Pitfalls of Ill-timed Home Sales
TLDR When it comes to navigating the ups and downs of the Singapore property market, timing is crucial. Three real-life...
Read More
Does Sell 1 Buy 2 Strategy Still Works Today in 2024?
TLDR When considering the "Sell One By Two" property investment strategy, keep in mind that it involves selling your previous...
Read More
Top 5 Historical Landmarks in Singapore
Singapore, a bustling cosmopolitan city-state, is known for its rich history and diverse cultural heritage. This small yet vibrant nation...
Read More
35 Brand New Condominiums Nearing Their ABSD Deadline 2023
TLDR The blog post discusses the looming ABSD deadline for several new launch condos in 2023, highlighting the impact on...
Read More
Finding the Perfect Match: Top 20 : A Guide to Choosing the Best Property Agent in Singapore
TLDR When it comes to buying or selling real estate in Singapore, having a professional and knowledgeable property agent is...
Read More
What Has Been The Most Significant Development In The Real Estate Market In 2022
TLDR In 2022, the real estate market saw significant interest rate hikes affecting home loan rates. Despite concerns, the market...
Read More
Ouch! How Owning a Million-Dollar Home Can Sting with a Whopping $300K Interest in Just a Decade!
TLDR When considering property investments in Singapore, it's crucial to monitor home loan interest rates closely. Even a slight increase...
Read More
5 Critical Mistakes to Avoid When Investing in Singapore Property: Insights and Advice from Experts
Investing in Singapore property can be a lucrative venture for investors, but it's important to avoid common mistakes that can...
Read More
The 5 Most Popular Types of Properties to Buy in Singapore
The 5 Most Popular Types of Properties to Buy in Singapore 1. Condominiums: Condos are popular among buyers because they...
Read More
Avoid The Possibility Of Negative Cash Sales: Find Out How Much Your HDB Has To Appreciate To Steer Clear Of It!
TLDR When selling your property, watch out for negative cash sales that could leave you with no money after CPF...
Read More
Is the Dream of Homeownership Becoming a Steeper Climb?
TLDR The article discusses the evolving trends in the Singaporean real estate market, focusing on the affordability and accessibility of...
Read More
A Comprehensive Guide for Buying Landed Real Estate in Singapore
TLDR When it comes to buying landed property in Singapore, there are three main types: terrace houses, semi-detached homes, and...
Read More
5 Pros Of Buying A Resale Property
Luxury properties in Districts 9 and 10 of Singapore are highly coveted, and for good reason. From stunning views and...
Read More
Looking To Buy An Older HDB Flat? Here’s What You Need To Know Before You Sign On The Dotted Line!
TLDR When considering purchasing an older flat, ensure to thoroughly inspect wet areas for leaks, check balcony conditions, watch out...
Read More
Discover the Best Breakfast in Singapore: Top 5 Must-Try Spots!
Trying out some of the best breakfast places, I've put together a list of the top 5 must-try breakfast spots...
Read More
What Is Cash Over Valuation in HDB (COV)
TLDR Cash Over Valuation (COV) in HDB resale flats occurs when the purchase price exceeds HDB's valuation. COV cannot be...
Read More
Why There’s No Perfect Time to Enter the Market
TLDR When it comes to property transactions, understanding the factors influencing rising prices is crucial. The pandemic has driven up...
Read More
Will Your HDB Flat Provide For Your Retirement?
TLDR Singapore's property market presents challenges with high prices, particularly in private housing, while public housing remains relatively more affordable....
Read More
