Private residential market prices up 0.9% in Q2

Prices of landed properties and condos rose at a slower pace.

Prices in the private residential market rose 0.9% in Q2, slowing from the 1.4% price increases in the previous quarter, data from the Urban Redevelopment Authority (URA) showed.

Prices of landed properties rose by 1.9% in Q2, slowing from the 2.6% rise in Q1. 

Condo prices inched up by 0.6% during the quarter, also slightly slower than the 1% increase in the first three months of 2024.

Condo prices in the core central region (CCR) fell by 0.3% in Q2, a reversal from the 3.4% increase in Q1.

Condo prices in the rest of central region (RCR) and outside central region (OCR) rose by 1.6% and 0.2%, respectively during the same quarter.

Increases in prices have “calmed” to moderate levels with demand achieving balance, said Leonard Tay, head of research for Knight Frank Singapore.

“Homebuyers were more selective in H1 2024, no longer showing the kind of urgency and fear-of-missing-out (FOMO) behaviour at showflats that was a feature of the market from the second half of 2020 to the first half of 2022,” Tay said. 

“Buyers scouring the new home market will continue to take their time to identify the right project with attributes that suit their lifestyle preferences,” he added.

Earlier flash estimates from URA reported that private home sales have slipped to its lowest in two decades. 

Rents fall whilst resales rise
Private housing rents, meanwhile, fell for the third consecutive quarter, with a 0.8% decline in Q2, following the 1.9% decline in Q1.

By region, condo rents in CCR fell by 0.1%. Rents in RCR and OCR also fell by 1.4% and 1.3%, respectively.

A total of 3,802 resale transactions were recorded in Q2, higher than the 2,689 units resold in Q1. 

Resale transactions made up 77.4% of all sale transactions in Q2, according to data from URA.

A total of 388 sub-sale transactions were recorded in Q2, versus 377 in Q1.

Pipeline
A total of 11,300 private residential units are expected to be completed in 2024. Of this, 3,600 units (including executive condominiums) were completed in the first six months of 2024.

In Q2, 634 uncompleted private residential units were launched for sale, lower than the 1,304 units launched in Q1.

A total of 725 private residential units (excluding ECs) were sold in Q2, lower than the 1,164 units sold in Q1.

As of end Q2, there is a total supply of 37,768 uncompleted units in the pipeline that has planning approvals. Of this, 20,566 units remained unsold.

A further pipeline supply of about 50,000 private residential units is expected to be completed over the next few years, URA said.