Market sees declining volume but resilient pricing trends
SINGAPORE: The resale home market in Singapore faced significant challenges in the fourth quarter of 2023, with transaction volumes plummeting to a three-year low of 2,586 units. This marks the lowest quarterly sales figure since the second quarter of 2022.
On a broader scale, 2023 witnessed an 18.4% year-on-year drop in resale volumes, declining from 14,003 units in 2022 to just 11,426 units. These figures fall notably below the five-year average of 13,353 transactions from 2018 to 2022, signaling a shift in market dynamics.
Rising Prices Amid Falling Sales
Despite the downturn in transactions, resale home prices demonstrated surprising resilience in the final quarter of 2023. According to data from OrangeTee and the Urban Redevelopment Authority (URA), the average price of resale homes (excluding executive condominiums) increased by 2.7%, reaching $1,674 per square foot (psf), up from $1,630 psf in the previous quarter.
Non-landed properties saw a robust quarter-on-quarter price hike of 3.7%, while landed properties recorded a 3.1% dip in resale prices.
In specific market segments:
Prime districts saw prices rise by 2.2%, from $2,081 psf in 3Q23 to $2,127 psf in 4Q23.
City fringe areas experienced a 2.3% increase, climbing from $1,742 psf to $1,782 psf.
Suburban areas recorded a 2% price growth, with prices rising from $1,423 psf to $1,451 psf.
This mixed performance across different segments highlights the nuanced factors driving price adjustments in various regions.
Outlook for 2024
OrangeTee projects moderate price growth in 2024, underpinned by an anticipated 48.2% reduction in housing supply. The combination of dwindling inventory and a potential uptick in demand could reshape the resale market, making it a key area for stakeholders to watch in the coming months.
