The third quarter of 2023 witnessed a slight increase in prices in the Singapore private residential property market. This signals a rebound in the real estate market following government cooling measures, although the growth remains modest. Compared to the preceding quarter, private residential property prices rose by 0.5%, yet remained below the average quarterly growth rate of 2.1% in 2022.

In recent quarters, the momentum of price growth in private residential properties has notably slowed down. This might be attributed to developers, buyers, and sellers analyzing market data to assess the impact of government cooling measures on housing demand and a more abundant supply of new housing, leading to a more cautious approach among buyers.

Apart from prices, the transaction volume of private residential properties also experienced a decline. In the third quarter of 2023, the transaction volume decreased by 15% to 4,569 units compared to the previous quarter, representing a 26% year-on-year decrease. This could be attributed to relative quietness during the lunar months of July, August, and September and an increase in the wait-and-see approach.

In contrast to private residential properties, non-residential property prices rebounded by 2.1% in the third quarter of 2023. The OCR and RCR areas showed strong price growth, rising by 5.1% and 2.3% respectively. This was primarily driven by the launch of new projects such as Lentor Hills Residences, The Myst, and LakeGarden Residences.

On the other hand, the Core Central Region (CCR) witnessed a 2.6% decline in condominium prices. This might be due to higher additional buyer stamp duty rates for investors and foreign buyers and the recent impact of anti-money laundering investigations, which have weakened market sentiment in the area.

For landed properties in the private residential market, there was a 4.9% decline in prices, breaking the upward momentum sustained over the previous eight quarters. However, due to continued tight supply and strong local demand for landed properties, it is anticipated that the prices of landed properties will not continue to decline.

Despite rising interest rates and government cooling measures, the private residential market has retained its resilience. With low unemployment and a continued increase in resale HDB (Housing and Development Board) prices, this has supported the demand for upgrades in private residential properties. Local demand for private housing is expected to remain healthy.

Furthermore, there are several upcoming new projects in the next few months expected to have a positive impact on transaction volumes. However, given multiple projects already in motion, pent-up demand might be satiated, and buyers may remain price-sensitive amid a weakened economic environment and rising interest rates.