Private Housing Further Moderates 11 Q O Q Growth 2Q2024 Ura Flash Estimates
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last yearQUOTEPrivate residential property prices saw a slight increase of 1.1% in the second quarter of 2024, according to flash estimates released by the Urban Redevelopment Authority (URA) today. This growth rate is lower than the 1.4% increase seen in the first quarter of the year.Private non-landed property prices rose by 0.9% in the second quarter, a slight increase compared to the 1% q-o-q growth recorded in the first quarter. The overall private housing market recorded 4,215 sales transactions, a figure almost identical to the sales transactions in the first quarter of this year. To find the latest New Launches, search for the available units and transaction prices. AdvertisementAdvertisementThe growth in private housing prices was driven by a decrease in prices in the Core Central Region (CCR) as non-landed properties in this region experienced a 0.2% decrease in prices compared to the 3.4% increase in the first quarter. Eugene Lim, CEO of ERA Singapore suggests that the decrease in CCR prices may be partly due to the downward revision of prices in several projects like Cuscaden Reserve and The Residences at W Singapore Sentosa Cove. He adds that the downward revision of prices in these luxury projects has sparked more activity in the luxury market in the CCR.
“This is a positive shift given that the CCR market, which typically sees a higher proportion of foreign buyers, has been suppressed due to the increase in ABSD rates for foreigners in April 2023,” says Lim.On the other hand, the Rest Central Region (RCR) saw a 2.2% increase in prices in the second quarter, higher than the modest 0.3% growth seen in the first quarter. Similarly, prices in the Outside Central Region (OCR) saw a 0.2% increase in prices in the second quarter, similar to the 0.2% increase seen in the previous quarter.Read also: Is it a Good Deal?: $1,237 psf for a two-storey penthouse in SentosaAdvertisementAdvertisementKnight Frank Singapore’s head of research, Leonard Tay, attributes the price growth in the RCR and OCR to elevated prices in the new launch market, which is a result of high construction costs and land prices committed to 12 to 18 months ago. The lack of sales in the new launch market could also have contributed to the downward pressure on the overall price index, says Christine Sun, chief research and strategist at OrangeTee Group.Based on URA caveats, the number of new home sales (excluding Executive Condos) fell 41.4% in the second quarter to 679 units, compared to the 1,158 units sold in the first quarter.As for the landed property market, prices saw a decline in the second quarter with a recorded growth rate of 1.8%, compared to the 2.6% increase seen in the first quarter. Knight Frank’s Tay suggests that demand for landed homes from Singaporeans who are moving up the housing ladder remains strong but is limited due to the scarce land in Singapore. He also adds that most sellers of landed homes are not willing to decrease their asking prices, causing buyers to snap up available properties at or just below market valuations.Read also: Final units at Perfect Ten and Pasir Ris 8 sold AdvertisementAdvertisementHuttons Asia’s senior director of data analytics, Lee Sze Teck, estimates that up to 16 new projects could be launched in the second half of 2024, adding a total of 7,571 new units to the market. Upcoming launches this month include Kassia and SORA.If market conditions remain the same, Lee estimates that developers may sell up to 6,500 new homes this year, with an overall price growth of up to 4%. Interested buyers can also check out the latest listings for Cuscaden Reserve and The Residences at W Singapore Sentosa Cove properties.