Singapore private resale home prices to grow by 3-5% in 2024

Prices grew by 2.7% in the final quarter of 2023.

Overall resale prices in Singapore’s residential market grew at a faster pace in the fourth quarter of 2023 as prices rose in the luxury, city fringe and suburban areas. 

According to the Urban Redevelopment Authority (URA) Realis data, the average price of resale homes, excluding executive condominiums (EC), rose by 2.7 per cent from S$1,630 psf in Q3 2023 to S$1,674 psf in Q4 2023. 

In a report, OrangeTee said: “Last quarter’s price increment was higher than the 0.8 percent growth in the preceding quarter. The non-landed segment saw a 3.7 per cent quarter-on-quarter (q-o-q) price increase, while the landed segment experienced a 3.1 per cent q-o-q decrease in resale prices in Q4 2023.”

Here’s more from OrangeTee:

The average price of non-landed and landed homes in the prime districts or Core Central Region (CCR) increased by 2.2 per cent from S$2,081 psf in Q3 2023 to S$2,127 psf in Q4 2023. Over the same period, prices in the city fringe or Rest of Central Region (RCR) rose by 2.3 per cent from S$1,742 psf to S$1,782 psf, while those in the suburbs or Outside of Central Region (OCR) grew by 2 per cent from S$1,423 psf to S$1,451 psf.

Outlook

Looking ahead, the property market is expected to remain stable in view of the prevailing property curbs, buyer prudence and cost concerns. The increased supply of condos had already stabilised prices in 2023, and we expect market stability to continue into 2024. 

Due to the completion of around 16,000 new homes from 2022 to 2024, homeowners in the city fringe areas will face steeper competition for buyers. Similarly, the total new completions in CCR will be around 7,700 over the same period, which may exert some downward pressure on prices in the luxury segment. Conversely, resale prices may rise moderately in OCR in view of the lower supply in 2024, especially for larger units which are currently in high demand. 

Since a decrease in private home completions will lead to fewer homes available for resale, we estimate that the total resale volume (excluding EC) may decline slightly to 9,000 to 11,000 units this year. Overall resale prices may rise at a slower pace of 3 per cent to 5 per cent in 2024, down from 7.5 per cent in 2023.