Competitive pricing and new launches may temper further growth in the housing market
SINGAPORE: Private home prices in Singapore rose by 6.7% in 2023, a slower pace compared to 8.6% in 2022 and 10.6% in 2021. The trend marks a gradual stabilization after a pandemic-driven property surge, according to the Urban Redevelopment Authority’s (URA) flash estimates released on Jan 2.
For the fourth quarter of 2023, prices increased by 2.7%, boosted by new project launches such as J’den in Jurong East, Hillock Green in Lentor, and Watten House in Bukit Timah. Among these, CapitaLand’s J’den emerged as a standout, selling 89% of its 368 units at an average of S$2,475 per square foot—a record for suburban condominiums. UOL Group’s luxury project Watten House also performed well, with 114 of its 180 units sold at an average of S$3,209 per square foot.
The housing market’s 2023 growth, though moderate, contrasts with earlier years, such as 2020’s modest 2.2% rise. Higher interest rates, slower economic growth, and increased duties on property transactions contributed to a cautious buyer sentiment.
Christine Sun, senior vice president of research at OrangeTee & Tie, noted that the increased supply of completed condominiums has played a key role in tempering price growth. “Property prices in Singapore have slowed considerably, ending the pandemic-induced surge,” she remarked.
Looking ahead, experts anticipate a steady but muted market in 2024. More than 15 significant projects, including five in the Core Central Region (CCR), one in the Rest of Central Region (RCR), and nine in the Outside Central Region (OCR), are expected to launch this year, fostering competitive pricing.
PropertyGuru projects that private home prices will remain high yet stable in the first half of 2024, with demand maintaining an upward trend despite subdued momentum.
