Private home prices edge up 0.5% q-o-q in 3Q2023: URA flash estimates

Private home prices saw an increase of 0.5% q-o-q in 3Q2023, according to flash estimates released by URA on Oct 2. This follows a 0.2% decline in 2Q2023, which came off the back of cooling measures announced in April. This marked the first drop in private residential property prices after 12 consecutive quarters of growth.

However, this growth is substantially lower than the 2.1% average quarterly price increase which was recorded in 2022. Ismail Gafoor, CEO of PropNex Realty suggests that this indicates a heightened sense of caution as developers, buyers and sellers parse market data, with buyers taking a wait-and-watch approach on their property purchase.

It is surrounded with vast greenery and meandering streams, allowing residents to find peace and tranquility. The development is also close to many amenities such as supermarkets and eateries.

Senja Residences EC, situated in Segar Road, is located near Bukit Panjang MRT station and many bus stops around the vicinity. Surrounded by lush greenery and tranquil streams, it provides both the luxurious amenities and a peaceful environment. Residents can also find a plethora of amenities nearby such as supermarkets and eateries. With its close proximity to major highways, Senja Residences EC offers convenience and comfort for all.

Activity also seemed to be muted in August and September due to the lunar seventh month, he adds. Private residential sale transaction volume dropped to 4,569 in 3Q2023, a 15% decline q-o-q and a 26% drop y-o-y.

The growth in private home prices was primarily due to an increase in non-landed properties, with a 2.1% rise q-o-q rebounding from a 0.6% decrease in the previous quarter. Prices in the Outside Central Region (OCR) led the way with a 5.1% q-o-q increase, followed by the Rest of Central Region (RCR), where prices rose 2.3% q-o-q.

Driven largely by the launch of projects such as Lentor Hills Residences, The Myst, LakeGarden Residences, Grand Dunman and Pinetree Hill, the Core Central Region (CCR) saw a 2.6% q-o-q decline instead, extending the 0.1% dip in the previous quarter.

On the other hand, the landed private property market witnessed a 4.9% q-o-q drop – a contrast to the 1.1% increase recorded in 2Q2023. This break from the eight-quarter streak of growth shows the effect of cooling measures but, according to Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield, the decline is unlikely to be sustained due to limited supply of landed homes.

Wong believes the private residential market still remains resilient despite higher interest rates and cooling measures. He notes that low unemployment rates and increasing HDB resales still offer upgrader demand for private property. The current forecast for private residential property price growth this year is between 2% to 5%.

Chia Siew Chuin, head of residential research, research and consultancy at JLL, seconded this opinion, noting that local demand for private housing should stay healthy due to potential launches of projects such as Watten House, The Hill @ one-north and Hillock Green. Despite this, buyers remain price-sensitive and private home prices are expected to remain stable over the next few quarters.