SRI - Singapore Realtors Inc.

26 Jul 2024

URA Insights: 2Q2024 Trends in the Private Property Market

Property Insight

The private property market in Singapore exhibited mixed dynamics in the first half of 2024, according to the latest quarterly statistics.

New Home Sales Overview: New home sales in Q2 2024 moderated to 725 units, the lowest since Q4 2022, due to a reduced number of project launches which totalled only 634 units. The correlation between the lack of significant launches and decreased sales figures points to a strategic delay by developers, possibly aiming to optimize market conditions by spacing out project releases.

Performance by Region: The Outside Central Region (OCR) defied the broader slowdown, accounting for 65.5% of the total new home sales in the first half of 2024, marking a significant increase and the highest share since the first half of 2021. This surge in OCR underscores ongoing demand for properties in these locales, despite overall market moderation.

Top Selling Projects: "The Botany At Dairy Farm" led the sales in Q2 with 86 units sold at a median price of $1,994 per square foot, followed by "Hillhaven" with 63 units. The success of these projects has not only highlighted the enduring appeal of the OCR but also stimulated sales in neighboring developments, showcasing a dynamic market where the success of one project can uplift surrounding ones.

Private Resale Market: Contrasting with the new home segment, the resale market thrived, with a 41.4% quarter-over-quarter increase in transactions in Q2, reaching the highest level since Q2 2022. This rise is attributed to recently completed developments and relaunched projects at appealing price points, which have drawn significant buyer interest.

Notable Trends in Resale Segment: Developments like "Treasure at Tampines" and "The Residences at W Singapore Sentosa Cove" saw heightened activity, suggesting that the market for resale properties remains vibrant and responsive to quality offerings. This trend is likely to continue, driven by the availability of units completed in the previous year and compelling pricing strategies.

Market Outlook: Looking ahead, the anticipation of new project launches in the second half of 2024 is expected to reinvigorate the new home sales market.

Click here for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

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2025 Market Outlook: Why Is CCR a Magnet for Investors & Buyers?

The Core Central Region (CCR) demonstrated robust activity in 2024 across new sales, resale, and sub-sale segments, reflecting a diverse range of buyer preferences and market trends. New sales were led by The Collective at One Sophia, which recorded 62 units sold at a median price of $2,732 psf. Its competitive pricing and strategic location made it particularly appealing to buyers. Other notable projects included 19 Nassim, with 52 units sold at a median price of $3,386 psf, offering a premium location and exclusivity, and Klimt Cairnhill, achieving a similar median price of $3,378 psf. Despite limited launches in 2024, demand for prime projects showcasing strong location, branding, and quality amenities remained evident.

The resale market emerged as the most resilient segment, registering significant transaction volumes. Cuscaden Reserve led with 147 units sold at a median price of $3,014 psf, benefiting from its prime location in District 10 and competitive pricing. Other strong performers included The Residences at W Singapore Sentosa Cove, with 81 units sold at $1,802 psf, appealing to buyers seeking waterfront living, and D’Leedon, which achieved 65 units sold at $1,982 psf. Resale transactions grew by 14.4% year-on-year, highlighting sustained demand for completed homes with strong locational attributes amidst limited new launches.

The sub-sale market saw a significant resurgence, with a 59.4% year-on-year increase in transactions. Leedon Green led the segment with 12 units sold at a median price of $2,863 psf, driven by its prime District 10 location, modern design, and proximity to prestigious schools. Kopar at Newton followed closely with 10 units sold at $2,555 psf, leveraging its location near Newton MRT and reputable schools. Sub-sales reflected increased investor activity and buyer interest in projects nearing completion, as they offered attractive pricing and shorter waiting times.

The luxury property segment in the CCR saw several notable transactions in 2024. The highest new sale was at Skywaters Residences, where a unit spanning 7,761 sqft sold for $47.3 million at $6,100 psf. In the resale market, two adjacent units at The Ritz-Carlton Residences Singapore, Cairnhill, were each sold for $16.5 million at $5,397 psf, demonstrating continued interest in branded luxury residences. Sub-sale highlights included a transaction at The Avenir, where a unit sold for $8.9 million at $3,686 psf.

Foreign and PR buyers continued to play a significant role in the CCR market. U.S. buyers led the foreign segment with 70 units sold, supported by ABSD exemptions under the Singapore-USA Free Trade Agreement. Chinese PRs dominated the PR segment, accounting for 138 units sold, reflecting sustained interest despite higher ABSD rates for foreign buyers.

Looking ahead to 2025, the CCR is poised for further growth, with anticipated new launches such as Marina View Residences and Aurea expected to rekindle buyer interest. Marina View Residences, offering 683 units in District 1, is set to attract professionals and investors with its strategic location and exceptional accessibility. Aurea, with its heritage-inspired design and prime District 7 location, is positioned to appeal to buyers seeking contemporary urban living. The CCR remains Singapore’s premier residential region, characterized by its luxury offerings, strategic locations, and strong capital appreciation potential.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

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Emerald of Katong Leads Historic November 2024 Property Sales

In November 2024, Singapore's developer sales surged to a historic high, achieving 2,557 new home transactions (excluding Executive Condominiums, or ECs) and totaling 2,891 units with ECs included. This represented a significant 246.5% increase compared to October's 738 units. Notably, November marked the first time in over a decade that new home sales exceeded 2,000 units in a single month, a record last seen in March 2013. This exceptional performance was fueled by strategic launches and improved market sentiment driven by easing interest rates.

Six newly launched projects dominated the market, contributing 82.8% (2,395 units) of total sales. Emerald of Katong led with 840 units sold at a median price of $2,627 psf, showcasing its appeal through its location and facilities in the Rest of Central Region (RCR). Chuan Park followed closely with 721 units sold at $2,586 psf, attracting buyers with its family-friendly environment in the Outside Central Region (OCR). Other key launches included Nava Grove, Novo Place, Union Square Residences, and The Collective at One Sophia, reflecting diverse buyer preferences for strategic locations and competitive pricing.

The stellar results demonstrated the enduring demand for large-scale, well-positioned projects offering comprehensive amenities. Developers successfully capitalized on a favorable environment, including strong buyer interest ahead of the school holidays and improved borrowing conditions.

Looking ahead, December is expected to experience a seasonal dip due to year-end festivities. However, momentum is projected to rebound in early 2025, driven by key launches such as The Orie in Lorong 1 Toa Payoh. Anticipation for developments like Marina View Residences and Parktown Residence further underscores confidence in Singapore’s property market, which remains resilient amid evolving conditions.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

Property Insight

2025 Outlook: Stability and Growth in Singapore's Landed Property Market

The landed property market in Singapore has displayed resilience and robust growth in 2024, setting a strong foundation for continued performance in 2025. In the first 11 months of 2024, 1,733 landed units were sold, surpassing 2023’s total of 1,516 units, with transaction values increasing by 10.5% to $9.17 billion. This growth reflects buyer confidence and sustained demand, driven by the exclusivity and scarcity of landed properties in land-scarce Singapore.

Price trends reveal a stabilization in the landed property price index, which grew by 1.0% over the first nine months of 2024 compared to 3.2% in the same period in 2023. Median unit prices have also displayed steady growth across all segments. Notably, prices for Good Class Bungalows (GCBs) remained buoyant, with high-value transactions exceeding $20 million. The GCB market recorded 21 caveated transactions, up from 18 in 2023, emphasizing the segment's appeal among ultra-high-net-worth individuals (UHNWIs). District 10 remained a cornerstone for GCBs, supported by Singapore’s political stability and economic strength.

District 19 emerged as the most sought-after area for landed homes, recording 309 transactions due to its mix of established enclaves and proximity to amenities. Other popular districts include Districts 15 and 28, which offer coastal lifestyles and suburban tranquility. The diversity of demand highlights the appeal of landed housing across various buyer segments.

Private homeowners played a pivotal role in 2024, with transactions by this group rising 23.1% year-on-year, driven by capital appreciation in non-landed properties and the aspiration to upgrade. The landed segment's strong fundamentals and exclusivity make it a preferred choice for wealth preservation.

Outlook for 2025 remains optimistic, supported by sustained demand from private homeowners and UHNWIs. Key drivers include steady transaction volumes, stable price growth, and high-value activity in the GCB segment. Stabilization in price growth is expected to continue, fostering a balanced market environment. Districts such as 10, 15, and 19 are likely to remain hotspots due to their desirability and limited supply.

The landed market’s resilience is further reinforced by off-market transactions in the GCB segment, which cater to buyers’ preference for privacy. Despite challenges like inflationary pressures and high interest rates, the market's appeal as a secure asset class is undiminished.

In summary, the landed property market is poised for continued growth in 2025. Limited supply, strong fundamentals, and consistent demand from affluent buyers position the segment as a cornerstone of Singapore’s real estate landscape. The landed property market’s ability to attract well-capitalized buyers highlights its status as a resilient and prestigious segment, ensuring it remains a key component of Singapore’s property market in the years ahead.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

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