Singapore’s private home prices continued to increase in the first three-months of 2024. They grew by 1.5 per cent, after a 2.8 percent rise in 2023’s last quarter, according to the latest government data published on Monday (Apr 1)

Prices continued to rise despite the 20 percent drop in volume of sales last quarter. This reflects market resilience.

Prices of private homes in the newly launched market will continue to rise due to commitments on land and construction.

The prices have stabilised ahead of a new supply of approximately 10,000 private houses expected in 2024.

Amid uncertain economic conditions, buyers have become more selective. Private home prices on average are up 34.5 per cent from Q1 of 2020.

A negative news flow resulting from a number of global layoffs could have impacted the buying mood at the beginning of this year.

Urban Redevelopment Authority data show that in the first three months, the landed housing prices outperformed other sectors. The increase was 3.4 percent, after a 4.6% rise in Q4.

The prices are supported by the local upgrading ambitions, limited supply and increased construction costs.

The prices of non landed homes in all areas increased 1 per cent in Q1 overall, a slight decrease from the increase of 2.3 per cent in the prior quarter.

The Core Central Region was the primary driver of the price increase. Prices increased by 3.1%, following a 4.9% increase in the previous quarter.

The top two non-landed home deals in the CCR are resale transactions of two units at The Ritz-Carlton Residences Singapore Cairnhill. Both sold for S$16.5M – S$5,397/sqft.

Cuscaden Reserve may also have contributed to a slight rise in the CCR Price Index, after selling 80 units so far at an average of S$3,000/sqft.

In the Outside Central Region, prices of nonlanded homes increased at an even slower pace in Q1, after a 4.5 percent increase in Q4.

Prices will likely rise in OCR due to the strong sales at Lentor Mansion.

Find out more: Lentor Mansion Singapore

URA caveats indicate that at the launch of Lentor in mid-March, 402 units (or three-quarters) were sold, at an average S$2,278/sqft, making this the most successful new launch of 2018.

In the meantime, non-landed property values in the city-fringe, or Rest of Central Region(RCR), recovered from an 8.8% drop in Q4 of 20,23 and increased by 0.28% in Q1.

Prices have stabilized, especially in RCR and OCR. In the RCR new sales are hovering around S$2,500, resale homes at S$1,700, and new and used OCR homes at S$2,200, respectively.

Demand may even plateau in some segments, as new supply increases and demand grows.

In Q1 2024 Singaporeans and PRs will account for 98.6 percent of all private home purchasers; foreigners will make up only 1.1 percent. Foreigners bought 35 residential properties in Q1, down significantly from Q4’s 66.

The Q1 total transaction volume was 3,482 compared to 4,334 in Q4 and 16 fewer than the same quarter last year.

It continues the trend towards a declining volume of transactions. The total volume of transactions for 2023 has already been the lowest since 2016.

The volume of transactions includes all new sales as well as resales or subsales. Executive condo units are excluded.

The looming economic uncertainties, the rising number of retrenchments, and the elevated interest rates are all factors that make buyers more cautious.

Other people defer their home purchase, hoping to get better deals in the event that interest rate reductions materialise during the second half.

URA will publish its full set for Q1 data on Apr 26.