Recently, the Urban Redevelopment Authority of Singapore released data on new home sales for the first half of 2024, revealing that sales of new homes in Singapore have dropped to historically low levels, falling below 2,000 units, marking the lowest point since 2004. Specifically, while sales in June showed a slight recovery to 228 units, up from 221 units in May, overall growth remains marginal. This trend highlights the prevalent soft market demand and cautious stance among buyers.
Analysts attribute the current challenges in the Singapore real estate market primarily to the impact of a high-interest-rate environment and government regulatory measures. In recent years, Singapore's government has implemented a series of stringent market control policies to curb rapid price increases, including raising home purchase thresholds and restricting investment property purchases. These policies have effectively moderated price growth to some extent but have also contributed to a decline in buyer purchasing intentions.
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Additionally, the upcoming general election has added uncertainty to the market. In response to public concerns about housing costs, the ruling party is intensifying efforts to increase the supply of private housing. While this measure could alleviate long-term housing shortages, it may exacerbate market wait-and-see sentiments in the short term, as buyers generally expect the government to introduce more market stimulus policies or price concessions.
Despite the subdued sales figures in the Singapore real estate market, property valuations remain high. According to recent data, the median price for private residential properties in Singapore is $1.32 million USD, one of the highest in the Asia-Pacific region. Furthermore, the median monthly rent in Singapore is $2,897 USD, also relatively high within the Asia-Pacific region, demonstrating the market's stability and attractiveness.
According to a report by Credit Suisse, Singapore has become the third most expensive city globally for private residential property prices, further exacerbating housing pressures for local residents and prompting foreign investors to exercise caution in market decisions.
