According to the latest real estate market report, the second quarter witnessed a slight 0.3% increase in the median prices of non-landed private residential properties, down from 0.9% in the first quarter. This slowdown is primarily a result of decreased market demand. The local non-landed private residential market has shown signs of deceleration due to the impact of rising loan rates and the implementation of real estate market control policies.
The report highlights a general cooling in the overall private housing and HDB rental markets. Landlords have reduced asking rents by 2.9% compared to the previous quarter, marking the first decline since 2018. Additionally, rental inquiries have seen a continuous decline for three consecutive quarters, dropping by 7.2% in the second quarter, indicating an oversupply in the rental market.
However, despite these adjustments, 56% of potential buyers remain confident in the local property market and have no plans to postpone their property purchase. Furthermore, 83% of respondents do not anticipate a decline in private property prices this year, with most being optimistic about the HDB resale market.
The market report suggests that buyers are proceeding with more caution in making their property purchase decisions. They are inclined towards purchasing private residential projects that meet their requirements, even if it means paying more. However, price and loan rates remain a significant obstacle to agreement between buyers and sellers.
The report also indicates that in the second quarter, more homeowners were willing to accept lower selling prices, especially those needing to avoid higher additional buyer stamp duties. This could be attributed to the impact of government-implemented real estate market control policies and poor market performance.
A survey conducted by Propnex on 450 potential buyers revealed that 56% of respondents have no plans to postpone their property purchase this year, indicating confidence in the local property market. Additionally, 83% of respondents do not foresee a decline in private property prices this year, with most being optimistic about the HDB resale market.
The report also highlights that over a quarter of respondents consider existing housing to be too small, indicating potential increased demand in the resale and new private housing markets. Most aim to purchase three-bedroom units or executive condominiums spanning approximately 800 to 1200 square feet, with prices expected to range between 1660 to 2500 SGD per square foot, with an overall price below 2 million SGD.
Despite a 67% disparity in the median psf prices between 99-year leasehold non-landed new private residential properties and 99-year leasehold resale private properties, many buyers still prefer to pay more for new private residential properties, banking on the advantages of a 99-year lease, brand-new construction, amenities, and potential capital appreciation enjoyed by the first owners, as per the restrictions on transactions in the first half of the year.
