The private property market in Singapore showed robust activity in the third quarter of 2024, with a steady demand for both new and resale units. This quarter saw substantial new project launches and consistent resale prices, highlighting the market’s resilience amid high interest rates and economic uncertainties.
Private Residential Resale Prices Steady in 3Q2024
Resale home prices for private residential properties held firm in 3Q2024, maintaining an average of $1,713 per square foot (psf), according to data from OrangeTee Research & Analytics. Prices in key regions displayed mixed trends:
- The Core Central Region (CCR) saw a 1.6% rise in resale prices, increasing from $2,145 psf in 2Q2024 to $2,181 psf.
- In the Rest of Central Region (RCR), prices rose by 1.4% to $1,863 psf.
- Conversely, the Outside Central Region (OCR) experienced a slight 0.4% dip, with average resale prices slipping to $1,489 psf.
This quarter’s resilience in resale prices is supported by sustained demand for secondary market properties, particularly as some buyers seek more affordable options compared to high new launch prices.
Surge in New Home Sales Drives Market Growth
New launches fueled a 60% quarter-on-quarter increase in new private home sales, which jumped from 725 units in 2Q2024 to 1,160 units in 3Q2024. The OCR led the sales surge, posting a remarkable 72.7% increase with 715 units sold. Similarly, RCR sales grew by 70%, reflecting strong interest in suburban properties with strategic locations.
Several high-profile projects boosted this surge, with Kassia and Sora standing out in the OCR at median prices of $2,052 psf and $2,153 psf, respectively. In the RCR, Pinetree Hill topped the charts with 88 units sold at a median price of $2,499 psf.
Growing Resale Transactions and Demand from HDB Upgraders
The resale market also gained momentum, recording a 1.5% quarter-on-quarter increase with 3,860 units sold in 3Q2024. This brings the year-to-date total for resale transactions to 10,351 units—an impressive 21.8% year-on-year growth compared to 2023. The increase was largely driven by HDB upgraders, who accounted for a significant portion of these transactions, marking a 20.1% increase in their activity.
Impact of Interest Rate Cuts on Buyer Sentiment
Recent interest rate cuts by the US Federal Reserve have sparked optimism among investors, particularly those eyeing high-end properties. Although affluent buyers are generally less affected by interest rate fluctuations, the cuts have created a favorable borrowing environment, which could enhance demand for luxury homes in Singapore. Projects like Norwood Grand saw an enthusiastic response, with 84% of units sold on its launch weekend.
Outlook for 2024
The market outlook remains optimistic as we approach the year’s end. With potential further interest rate reductions, property affordability could improve, encouraging continued demand. Given the combination of strong new launches and steady resale interest, the private property market in Singapore is poised to close 2024 on a high note.
