In recent years, there has been a substantial increase in housing supply in Singapore, with around 28,600 new homes completed in 2022 and 2023. Measures taken by the government to address real estate and mortgage tightening have slowed the rate of price increases from 8.6% in 2022 to the anticipated 4% to 5.5%.
This shift signifies the market adapting to new economic realities.
Due to a combination of market stability and improved economic conditions, it is expected that private residential market prices in 2024 will experience slight growth. With the recovery of industries such as tourism and electronics, economic growth is expected to range between 1% and 3%. Many economists predict that low-interest rates may further reduce borrowing costs, enhancing purchasing power.
Private residential sales are anticipated to remain robust in 2024, with price growth expected to range between 3% and 6%.
In the Singapore real estate market, 2024 is poised to be a pivotal year. There will be 31 development projects entering the market, providing over 12,000 new private residential units. It is expected that 23 projects will introduce around 8,800 units, representing a significant increase compared to 2023.
Six to nine large-scale projects are expected to dominate these launches, potentially driving an increase in market sales.
Compared to the overall market, the luxury residential market in the Core Central Region (CCR) is expected to see a substantial reduction in the number of new property launches. However, projects such as Marina View Residences, Newport Residences, and Skywaters Residences are anticipated to garner significant attention.
Due to reduced supply, prices in the suburban secondary housing market are expected to gradually rise. In 2023, over 19,000 private residential units are expected to be completed, while the completion quantity in 2024 will decrease by nearly 50%, to less than ten thousand units. This reduction in supply, especially in the suburbs, may exert upward pressure on resale prices, with an expected increase of 3% to 5%.
In 2024, the Singapore rental market may still experience softness. From 2022 to 2024, nearly 16,000 new housing units are expected to be completed, bringing new dynamics to the market, especially in urban fringe and suburban areas.
Overall, rental growth in the luxury condominium market is expected to slow down, compared to the peak growth of 29.7% in 2022.
In the coming years, the Singapore real estate market will continue to be influenced by policy regulations and economic factors. The government will persist in taking measures to stabilize the market, including maintaining housing supply, adjusting housing demand, controlling housing prices, and improving the purchasing ability of homebuyers.
Furthermore, economic factors will continue to drive market development. With the anticipated recovery of industries such as tourism and electronics, economic growth is expected to gradually rebound, supporting the development of the real estate market. Additionally, the low-interest rate environment may further stimulate the willingness of homebuyers, boosting real estate sales.