The Singapore government implemented corrective measures to prevent hot money from entering the market, imposing additional buyer's stamp duty on foreigners purchasing residential properties and raising the additional buyer's stamp duty rates for Singaporeans and permanent residents buying the second and subsequent residential properties. By the end of 2023, the rate of property price increase is expected to exceed 5%.
The peak of the market in 2019 marked the highest level of supply in recent years, but in 2023, the number of unsold units is expected to be between 17,000 and 17,500, significantly lower than the peak in 2019. The resale market, influenced by long-term high-interest rates, has experienced a declining trend, with an estimated resale transaction volume of around 10,500 units in 2023.
Although the number of unsold units in the market is slowly rising, developers still expect to launch 26 private residential projects and 1 Executive Condominium (EC) project, far exceeding the 15 private residential projects and 3 EC projects in 2022.
Supported by strong demand for HDB resale upgrades, projects in the Rest of Central Region (RCR) and Outside Central Region (OCR) dominate the best-selling launch list in 2023.
The integrated development project The Reserve Residences in the heart of Bukit Timah emerged as the best-selling project in 2023, followed by Grand Dunman and Lentor Hills Residences. Developers achieved good sales performance in the past three launches by the end of 2023, indicating ample liquidity and buyer confidence.
By 2024, the number of unsold units in the market is expected to continue to rise slowly but remain significantly lower than the peak in 2019. The government has been increasing the sale of state-owned land since 2021, and the supply is expected to reach the highest level in 11 years in 2024, with an estimated addition of 5,583 units.
Some potential major projects include Peace Centre/Peace Mansion, Marina View Residences, Newport Residences, and Skywaters Residences. Additionally, up to 38 new projects may be launched, with a projected total unit count of 11,636.
While developers hold cautiously optimistic views on the new sales market in 2024, expecting to sell 7,000 to 8,000 apartments, higher interest rates might deter some buyers, leading to a relatively calm resale market with a volume of about 9,000 to 10,000 units. Overall, it is anticipated that property prices in the real estate market will grow by 3% to 5% in 2024, contingent on various unforeseen factors.
It is worth noting that the corrective measures implemented by the government have impacted the number of purchases by foreigners in the Core Central Region (CCR), dropping from a high of 59 units in March 2023 to 10 units in November 2023. This indicates the effectiveness of the government's market control measures in helping curb the upward momentum of property prices.
