In 3Q2023, private home prices increased 0.5% q-o-q

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The Hillshore by Hillside View Development Pte. Ltd.

Private home prices climbed to 0.5% q-o-q in 3Q2023 according to the latest estimates published by URA on October 2. The rise is a slight increase over previous 0.2% decline recorded in 2Q2023. The decrease was on the after the announcement of cooling measures in April, marked the first fall in residential private property prices following 12 consecutive quarters of growing.

However, the increase in 3Q2023 was significantly lower than the typical quarter-to-quarter price rise in the range of 2.1% recorded in 2022. “The increase of private home prices has decreased significantly during the recent quarters. This is a sign of the increased anxiety as developers as well as buyers and sellers look at market data to evaluate the effect of cooling measures to the housing market and buyers adopt an approach of waiting and watching buying a property purchase amid a greater inventory of new homes over the last few months.” states Ismail Gafoor, CEO of PropNex Realty.

The Hillshore by Hillside View Development Pte. Ltd. took the visionary step of acquiring Gloria Mansion through a collective sale, injecting a sum of $70.3 million.

It was also quieter in September and August because of the seventh lunar month the economist states. The volume of private residential sale transactions decreased by 15% from q-o-q, to 4,569 transactions in the 3Q2023 quarter as well as 26% less than a year ago.

The increase in private house prices was fueled by non-landed properties which experienced the most significant increase in 2.1% q-o-q rise in prices in 3Q2023, bouncing back from an 0.6% decrease in the prior quarter.

The homes located in the Outside Central Region (OCR) was the most popular in price growth, increasing 5.1% q-o-q, followed by the Rest of Central Region (RCR) with prices rising 2.3% q-o-q.

The price growth across both the OCR as well as the RCR was driven mainly by new launches, like the 5,98-unit Lentor Hills Residences and The 408 unit The Myst and the LakeGarden Residences, which have a 306-unit unit in the OCR and the 1,008 unit Grand Dunman and the 520-unit Pinetree Hill in the RCR.

However, the prices of condos within the Core Central Region (CCR) declined 2.6% q-o-q, extending the drop in the region of 0.1% registered in the prior quarter. The CCR segment is still weighed down by the prohibitive stamp tax rates for investors as well as foreigners. In addition, the recent money laundering investigation that has been a major topic has slowed the market’s enthusiasm in this sector, says Lam Chern Woon, head of research and consulting at Edmund Tie.

The private landed property market also slowed down in the 3rd quarter of 2018 as prices fell 4.9% q-o-q – a reverse from previous 1.1% increase recorded in 2Q2023. The decline ends an eight-quarter run of growth in the cost of housing for landed properties according to Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield. “Nonetheless we don’t expect an ongoing decline in home prices for landed homes because landed homes are extremely scarce and popular with residents,” he opines. To date, prices for landed homes have increased by 1.8%.

Regarding the outlook, Wong believes the private residential market is resilient, despite higher rate of interest as well as cooling policies. “Unemployment rates are low and resales of HDB prices continue to rise and this is boosting demand for upgrades to residential property,” he comments. Cushman & Wakefield is maintaining its forecast for price growth in the full year in the range of% up to% for residential private properties by 2023.

Chia Siew Chuin, the head of research and research on residential homes and consulting at JLL Chia Siew Chuin, head of research and consultancy at JLL, agrees, not that the local demand for private housing is expected to remain strong. “In between October and November transactions will be boosted by the possible launch of numerous new projects like Watten House, The Hill @ One-North, Hillock Green in Lentor Central and J’Den, which is a redevelopment project for Jcube in Jurong East,” she adds.

However the fact that 19 projects have been completed in 2023, and the lingering demand likely to be satisfied, Chia believes buyers will remain price-sensitive in the face of an economic downturn and rising interest rates. Chia expects the private home market increasing by 3.6% over the first three quarters of 2023 to remain relatively steady over the coming quarters.

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