Experts foresee dip in private home resales for 2024

OrangeTee expects volume to drop to 9,000 to 11,000 units.

Real estate experts predict a decline in private home resale transactions in 2024, given the "cooling measures and still tight lending environment."

Estimates from OrangeTee showed that resale volume could drop from 11,329 units in 2023 to approximately 9,000 to 11,000 units in 2024.

In 1Q24, there were  2,603 resold homes, excluding executive condominiums. Of the total, 2,276 are non-landed, whilst 327 are landed.

The 1Q24 figure represents a 7.2% QoQ decline from 4Q23, where 2,806 units exchanged hands. The first quarter of 2024 also marks the third straight quarter of contraction in resale transactions.

The resale volume also fell in the city fringe and suburbs, declining 10.2% QoQ to 769 units and dropping 8.4% QoQ to 1,333 units, respectively.

"As a result, the proportion of total resale transactions in the prime CCR rose from 17.6% in Q4 2023 to 19.2% in 1Q24, "OrangeTee reported.

"In contrast, the proportion of resale homes excluding EC in OCR dipped from 51.9 per cent to 51.2 per cent, while those in RCR slipped from 30.5 per cent to 29.5 per cent over the same period," OrangeTee added.

Commenting on resale prices, OrangeTee predicts a slowdown in the growth rate, saying prices may grow between 3%-5% in 2024. in 1Q24, the average price of resale homes, excluding EC, rose by 1.4% to  $1,691 psf.