According to the Urban Redevelopment Authority (URA) report, the private residential property price index rose by 1.1% quarter-on-quarter, lower than the 1.4% recorded in the previous quarter and significantly lower than the 2.8% year-on-year increase from the same period last year. This trend indicates a gradual adjustment in the market's response to rising prices, reflecting government efforts to control overheating in the real estate market.

Singapore, as a prominent player in the global private housing market, was recently ranked the third most expensive city globally by the Swiss Bank UBS. This recognition is primarily attributed to high demand for land and limited supply, resulting in property prices generally being about 70% higher than the global average. While this price premium partly stems from foreign investment demand, policies such as foreign buyer stamp duties and increased stamp duties implemented by the government in recent years have imposed constraints on foreign investors.

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Specifically, the additional buyer stamp duty policy introduced by the Singapore government in April 2023 increased the tax rate for foreign buyers purchasing residential properties from 30% to 60%, and for entities and trusts, from 35% to 65%. These measures aim to balance market supply and demand, prevent rapid price increases, and safeguard the interests of local homebuyers. However, these policy changes have had significant implications on the market, particularly affecting high-end segments and influencing the purchasing decisions of foreign buyers.

The Singapore real estate market encompasses not only private residential properties but also public housing estates managed by the Housing and Development Board (HDB). Public housing estates, with relatively lower prices, primarily cater to local residents, while private residential properties include various types of condominiums, strata-titled apartments, and detached houses developed and managed by private developers. In recent years, occupancy rates in public housing have decreased, reflecting sustained demand and competitiveness in the private residential market.

Despite the government's series of measures to regulate the market, the Singapore real estate market demonstrates strong resilience and attractiveness. For instance, despite tax policy changes, high-net-worth buyers can still afford the purchase costs of smaller homes within reasonable ranges. Moreover, as a regional safe haven, Singapore's geopolitical neutrality enhances its appeal as an investment destination amidst global geopolitical tensions.

Looking ahead, property market experts anticipate moderate growth continuation in the Singapore real estate market. Despite several project launches in recent years, the relative scarcity of new housing supply in the first half of 2024 has somewhat limited market growth potential. However, with continued government support for land development and a resurgence in market demand, future quarters may witness the introduction of more new projects, particularly in core commercial districts and central locations.