SRI - Singapore Realtors Inc.

24 Jan 2025

4Q2024 Private Property Market Review: Resale and New Launch Trends

The private property market in 2024 demonstrated significant growth, with both new private home sales and resale transactions recovering strongly, especially in the second half of the year. This resurgence was driven by favorable financial conditions, strategic project launches, and renewed buyer confidence.

Key Market Drivers

Lower interest rates, spurred by a rate cut from the US Federal Reserve, boosted buyer sentiment, reducing borrowing costs and making private properties more accessible. Singapore's robust economic recovery, marked by a 4.0% GDP growth in 2024 compared to 1.1% in 2023, further strengthened confidence. Developers capitalized on this favorable environment by introducing 3,425 new units in 4Q2024, a significant increase from 1,284 units in 3Q2024, catering to pent-up demand with well-timed launches.

A tight supply of new launches in the first half of the year redirected buyer interest toward the resale market, particularly for newly completed properties ready for immediate occupancy. The interplay between new sales and resale markets contributed to a dynamic property landscape.

Resale Market Performance

Private resale transactions reached 14,053 units in 2024, reflecting a 24.0% year-on-year increase and marking the highest annual volume since 2021. HDB upgraders played a pivotal role, with their participation rising by 19.2% to 3,988 units, highlighting the continued demand from families seeking larger and higher-quality homes.

New Private Home Sales

New private home sales totaled 6,469 units in 2024, slightly up from 6,421 units in 2023. The market experienced a strong recovery in 4Q2024, with a 2.3% price index increase, rebounding from a 0.7% contraction in 3Q2024. Developers employed curated pricing strategies and favorable financing options, enabling steady sales and maintaining market optimism.

Price Trends and Cooling Measures

Private property prices grew moderately by 3.9% in 2024, compared to 6.8% in 2023, reflecting a stabilization amid tighter borrowing conditions and ongoing government cooling measures. These measures, including higher Additional Buyer’s Stamp Duty (ABSD) rates, effectively curbed speculative demand, ensuring more sustainable growth.

Outlook for 2025

The private property market is projected to maintain stability in 2025. New private home sales are expected to range between 7,000 and 8,000 units, supported by strategic launches and favorable buyer sentiment. Resale transactions are forecasted to reach 14,000 to 15,000 units, with reduced private residential completions moderating supply and driving competition for ready-to-move-in properties.

Private property prices are projected to grow by 3.0% to 6.0% in 2025, underpinned by limited supply and demand from upgraders. Buyers are encouraged to remain cautious, avoiding over-leveraging and considering long-term affordability.

In summary, the private property market in 2024 showcased resilience and growth, fueled by favorable conditions and strategic developer actions. With a balanced outlook for 2025, the market is well-positioned to adapt to evolving economic dynamics and maintain its appeal as a stable investment destination.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

24 Jan 2025

How 4Q2024 Shaped HDB Resale Prices and Transactions

2024 HDB Resale Review: Sustained Growth Despite Moderation

The HDB resale market in 2024 demonstrated remarkable resilience, with resale prices increasing by 9.7% for the year, nearly double the 4.9% growth recorded in 2023. However, the fourth quarter (4Q2024) showed signs of moderation, with a quarterly price increase of 2.6%, slightly below the 2.7% seen in the third quarter. This moderation is a reflection of a more balanced market as cooling measures and other factors influenced buying activity.

Key Drivers of Price Growth

The robust growth in resale prices was primarily driven by the limited supply of flats reaching their Minimum Occupation Period (MOP) in 2024, creating upward pressure on prices. Buyers showed strong interest in newer flats and larger units, such as five-room and executive flats, which cater to the needs of growing families. Executive flats experienced the most significant transaction growth, increasing by 17.6% year-on-year to 1,820 units. This reflects a growing preference for spacious homes amid limited supply.

Resale Volumes and Trends

While resale transactions in 4Q2024 moderated to 6,424 flats, down from 8,142 in 3Q2024, the overall resale volume for 2024 reached 28,986 flats, marking an 8.4% year-on-year increase. This was the highest annual volume since 2021, driven by demand for flats nearing their MOP and larger flat types. Seasonal factors, such as the year-end holiday lull and the October BTO exercise introducing Standard, Plus, and Prime flats, likely contributed to the softer activity in 4Q2024.

Despite the moderation in million-dollar transactions due to cooling measures, the market remained resilient. A total of 1,035 million-dollar resale flats were sold in 2024, more than doubling the 469 transactions in 2023. This underscores the sustained demand for flats with unique attributes, even amid regulatory changes.

Outlook for 2025

In summary, the HDB resale market remains robust despite short-term challenges, with sustained demand for larger units and innovative solutions addressing supply constraints. The strategic mix of immediate and long-term housing options positions Singapore’s public housing landscape for stability and growth in 2025.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

15 Jan 2025

December 2024 Sees Year-on-Year Growth in Private Home Sales

Residual momentum from November's robust developer sales activity carried into December 2024, a typically quieter month for real estate transactions. Developers sold 203 new residential units (excluding Executive Condominiums or ECs), a significant 92.1% month-on-month moderation from November's revised figure of 2,560 units. The moderation can be attributed to seasonal factors, such as the festive period and year-end school holidays, which usually see reduced market activity.

Despite the lower monthly figures, December 2024 reflected a marked improvement year-on-year, with a 50.4% increase in units sold compared to December 2023. This represents the strongest December sales since 2021, underlining recovering buyer confidence amid stabilizing market conditions. A key contributor to this outcome was the carry-over effect from November's strong sales momentum, sustaining interest even during the traditionally subdued holiday season.

Novo Place, an EC project, led December’s sales with 158 units sold at a median price of $1,647 per square foot (psf), highlighting the sustained appeal of ECs, particularly among first-time buyers and upgraders. Hillock Green and The Myst followed with 19 and 17 units sold, respectively, demonstrating strong demand for projects in the Outside Central Region (OCR). The Myst developers strategically released units in December, capturing buyer interest during a quieter period and maintaining market focus on their project.

Developers are optimistic about early 2025, with anticipated launches like The Orie, Bagnall Haus, and The Collective at One Sophia expected to drive increased activity. These projects are strategically positioned ahead of Chinese New Year to capture market momentum, offering diverse options for first-time buyers, upgraders, and investors. As the market transitions into the new year, the alignment of supply and demand is expected to support continued recovery and buyer interest.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg