Prices for landed homes rose by 5.7% quarter-on-quarter, while prices for non-landed homes also rose by 2.5%. In the rest of the Central Region (RCR), which represents mid-range private housing, non-landed homes saw the strongest price increase of 4.0% quarter-on-quarter, thanks to the opening of the new Terra Hill development.

According to Y.C. Tai's Director of Industrial Research and Consultancy, Mr. Lan Zhenwen, the rebound in price growth is a testament to strong demand and affordability among homebuyers. However, the dynamics of the residential market are more volatile than the previous year as living and borrowing costs have soared and are unlikely to decrease in the near future.

Given the downturn in the manufacturing sector and the uncertainty of the broader environment, the outlook for future growth in the residential market remains potentially volatile. The risk of job cuts is also expected to increase, although the labour market remains relatively healthy for now, and an increase in the number of project completions between 2023 and 2024 will also have an impact on the rental market.

Home buyers should continue to be cautious when it comes to large purchases such as property, according to Lan Zhenwen. With an uncertain economic environment, rising borrowing costs, higher transaction costs and a high likelihood of rental adjustments, property investments are likely to generate positive returns in the medium to long term. Considering the large number of projects set to open this year, homebuyers can wait for the right location and project to find the home that best meets their needs and budget.