Moderate price growth is brought by a stable market
Ministry of Trade and Industry’s economic projections for 2024 show a growth rate of 1-3% benefiting the stability of the private residential market. With this, a modest increase in prices is expected at a rate of 4-6%.
An estimated 16,000 to 19,000 private homes are forecasted to be sold in 2024.
More property launches to meet demand mean new homes
About 30 developments are up to launch by 2024 offering 12,000 and more new private homes for Singaporeans. Even if a conservative estimate of 23 launches is taken considering construction delays, a significant increase of 15.8% is still observed in comparison to 2023 launch rates.
The luxury market in CCR will experience a substantial drop in new launches but the city fringe and suburban areas will hold large projects.
Rental prices decline after tenants move to new homes
Competition for tenants intensifies between landlords. The dilemma has forced them to lower rental rates since the second half of 2023 when the surge in rents slowed down.
From a peak growth of 29.7% in 2022, to between 12-14% in 2023, and 2-5% in 2024. However, foreign demand may affect projections because of the 60% buyer’s stamp on top of the residential property value.
Limited supply raises suburban resale prices
The rising demand and low supply of resale properties in suburban areas are seen to drive property prices to increase in 2024. The number of completed homes in OCR will fall from 10,000 units in 2023 to 1,800 in 2024.
Projections in resale prices show an overall rise of 3-5%. Meanwhile, transaction volumes are to decrease from 10,000-12,000 in 2023 to 9,000-11,000 by 2024.
