Private Housing Further Moderates 11 Q O Q Growth 2Q2024 Ura Flash Estimates
Unsold inventory of completed private homes hits two-year highSINGAPORE: According to URA flash estimates released today, there was an increase of 1.1% in private residential property prices in the second quarter of 2024 compared to the first quarter, where prices rose by 1.4%. This indicates a slight moderation in the quarterly increase. Non-landed property prices in the market increased by 0.9% last quarter, showing a slight improvement from the 1% increase in the previous quarter. The overall private housing market recorded a total of 4,215 sales transactions in the second quarter of 2024, almost matching the 4,230 transactions in the first quarter. To keep up with the latest property transactions and prices, check out the latest new launches.
Source: URA
The recent increase in private housing prices was mainly caused by a decline in prices in the Core Central Region (CCR) area, where non-landed home prices fell by 0.2% compared to a 3.4% increase in the first quarter of 2024. Eugene Lim, chief executive officer of ERA Singapore, said that the decrease in CCR prices could have been due to downward price revisions in some CCR projects, such as Cuscaden Reserve and The Residences at W Singapore Sentosa Cove.
Lim noted that these price revisions in luxury projects have resulted in an increase in buying activity in the luxury market. He added that this was a positive change, as the CCR market, which typically sees a large number of foreign buyers, has remained subdued due to an increase in ABSD rates for foreigners in April 2023.
In contrast, prices in the Rest Central Region (RCR) increased by 2.2% in the second quarter of 2024, which was higher than the modest 0.3% growth in the first quarter of 2024. Additionally, prices in the Outside Central Region (OCR) increased by 0.3% in the second quarter of 2024, remaining largely unchanged from the 0.2% increase in the previous quarter.
Meanwhile, landed property prices continued to moderate, with a quarterly increase of 1.8% in the second quarter of 2024, compared to a 2.6% increase in the first quarter. Leonard Tay, head of research at Knight Frank Singapore, attributed this price growth in the RCR and OCR to the high prices in the new launch market, which are a result of high construction costs and land prices that were committed 12 to 18 months ago.
Christine Sun, chief research and strategist at OrangeTee Group, noted that the lack of sales in the new launch market could have contributed to downward pressure on the overall price index. Based on URA caveats, the number of new home sales (excluding Executive Condos) fell by 41.4% in the second quarter of 2024, compared to the first quarter.
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As for the landed property market, Tay noted that demand for landed homes from Singaporeans continues to be strong despite limited supply in land scarce Singapore. He added that most landed home sellers are reluctant to decrease their asking prices and price premiums, causing buyers to snatch up properties that are listed at, or slightly under, their market valuations.
Lee Sze Teck, senior director of data analytics at Huttons Asia, predicted that up to 16 new launch projects could enter the market in the second half of 2024, injecting 7,571 new units into the market. Upcoming launches include Kassia and SORA this month. If current market conditions persist, Lee believes that developers may sell up to 6,500 new homes this year, with an overall price increase of up to 4%.
To keep up with the latest property transactions and prices, check out the latest new launches like Cuscaden Reserve and The Residences at W Singapore Sentosa Cove.