According to the latest data, the annual growth in private residential prices slowed to 6.7%, marking the second consecutive year below the previous year's level. Nevertheless, by the end of the year, prices had risen by 2.7% compared to the third quarter, primarily driven by new projects.
Notably, in November, some non-landed projects such as Hillock Green, J'den, and Watten House showed strong sales performance. This demonstrated active participation from local buyers, especially as the reduced participation of foreign buyers due to the 60% increase in ABSD for them.
Additionally, Singapore citizens and permanent residents faced the policy measure of doubling ABSD, the third round of cooling measures since the end of 2021. These policy changes significantly impacted the market dynamics.
Ms. Sun, Senior Vice President of OrangeTee and Tie, attributes the rapid price growth in the fourth quarter to the increase in prices in the Core Central Region (CCR) and Outside Central Region (OCR), despite a slight decrease in prices in the Rest of Central Region (RCR).
Meanwhile, transaction volumes decreased by 27% month-on-month, with the annual transaction volume dropping by approximately 15% compared to 2022, reaching the lowest level since 2016.
Looking ahead to 2024, the Singapore real estate market is expected to maintain stability. Continued interest from investors and local homebuyers will contribute to market stability.
Professionals point out that the increase in completed condominium supply in 2023 will help stabilize housing prices, and this trend is expected to continue into 2024. With improvements in economic and employment prospects, the real estate market is expected to be stimulated, increasing demand for properties.
Analysts predict that price growth in 2024 may slow down, with a growth rate of approximately 3% to 6%. The Singapore government, through the Government Land Sales (GLS) program, has increased housing supply to meet purchasing demand and maintain price consistency with economic fundamentals. This government initiative aims to ensure market stability and provide diverse real estate options.
