In the first quarter of 2024, the private property market exhibited signs of stabilization and sustained growth, particularly in new home sales and private property prices. New home sales increased by 6.6% quarter-over-quarter, with the total reaching 1,164 units sold. This growth was predominantly driven by sales in the Outside Central Region (OCR), which accounted for 71% of total sales, highlighting a robust demand in this segment.
Notable new developments such as Lentor Mansion, Lumina Grand, Hillhaven, The Arcady At Boon Keng, and Lentoria played a significant role in revitalizing the market. Lentor Mansion topped the sales chart with 408 units sold at a median price of $2,269 per square foot, showcasing the positive reception to new guidelines emphasizing liveable space in property measurements. Lumina Grand also saw substantial activity, with 370 units sold, underscoring a vibrant market for new launches.
Overall, private property prices saw a modest increase of 1.4% in 1Q2024, with a notable interest in properties priced between $1.0 million and $2.0 million. This price bracket, particularly highlighted by Lentor Mansion’s sales, reflects a market trend favoring affordable luxury. The landed property segment also experienced growth, particularly in the $4.0 million to $7.0 million range, indicating a strong market for premium landed homes.
The implementation of a 60% Additional Buyer's Stamp Duty (ABSD) for foreigners, up from 30%, has significantly moderated foreign participation in the market, making room for a greater proportion of local buyers. Singaporeans now constitute 82.4% of the private property purchases, a significant increase that suggests a shift towards a more locally-driven market.
Resale transactions, although experiencing a slight decrease of 5.0% quarter-over-quarter, saw an annual increase of 2.6%. The relaunch of Cuscaden Reserve at more attractive price points contributed to this interest, attracting both investors and regular buyers. Additionally, the rental market has seen an uptick, particularly in newly completed developments such as Normanton Park and Treasure at Tampines, indicating a preference among renters for newer units.
Looking ahead, the market is expected to maintain its positive trajectory, supported by a steady demand for new property launches and the successful introduction of new developments. Factors such as potential adjustments in interest rates could further enhance the attractiveness of real estate investments, indicating a promising future for the private property sector. This ongoing resilience, coupled with strategic new developments and supportive economic conditions, suggests a controlled yet positive growth in the property market amidst ongoing regulatory measures.
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Prepared By:
Mohan Sandrasegeran
Head of Research & Data Analytics