In 2023, the housing market in Singapore saw less demand for both private and public housing. The rental market, which was very active at the beginning of the year, started to calm down. People weren’t buying as many private homes, partly because of government measures to control prices, higher interest rates, and uncertain economic times. The market for resale public housing also slowed down in terms of both prices and the number of transactions. Despite this, property owners didn’t feel pressured to sell their properties quickly and kept their prices high. So, what does this mean for the Singapore property market in 2024? Will prices go down? Home-seekers and property investors should keep an eye on how things develop over the next year.
Summary of Singapore Property Market 2023:
In the first half of 2023, the government in Singapore made several announcements about properties and put in place new measures to cool down the market. They raised the Buyer’s Stamp Duty (BSD) in the Budget 2023 statement. Then, in April 2023, they announced even more cooling measures by increasing the Additional Buyer’s Stamp Duty (ABSD). This mostly affected foreign buyers and investors, with their ABSD rates going up to as much as 60%. Because of this, there were fewer property transactions in the Core Central Region (CCR). Interest rates also played a big role in people’s decisions about buying homes in 2023. Even though the US Fed rates didn’t change as much as they did in 2022, they stayed high throughout the year, reaching 5.25% to 5.50% by December 2023. People worried about inflation and the possibility of mortgage rates going up, so some of them held back from investing in Singapore Property Market.
In the second half of 2023, property prices started to grow at a slower pace. Both public and private housing prices became more stable. The government kept launching new Build-to-Order (BTO) projects, especially in popular areas, which diverted some demand away from both HDB and private properties.
However, the demand for HDB flats worth a million dollars continued from 2022 into 2023. In fact, there were more transactions for million-dollar HDB flats in 2023 compared to 2022.
On the other hand, the rental market in Singapore saw a decrease in demand as tenants moved into newly built homes. It’s expected that by the end of 2023, around 20,000 units will be completed. This is a big increase from before 2019 when the COVID-19 pandemic caused delays in construction, making people wait longer for homes to be ready. With more homes available, there will likely be more rental properties listed.
Expectations for Singapore’s Property Market in 2024:
In 2024, the economy of Singapore is expected to keep growing steadily. Because of this, people selling homes might not need to lower their prices to sell quickly. However, if prices stay high and interest rates remain the same, some buyers might find it hard to afford properties. They might need to look at other options that are still good but cost less. Also, we’re noticing that more buyers are interested in properties in areas outside the central region, especially near MRT stations. Some new condos in these areas did well when they were launched in 2023, like Grand Dunman, J’den, and Watten House.
While people who want to live in their own homes will probably be the main ones buying, investors who have enough money may still decide to buy their second properties. One reason for this is that these investors are accepting that they have to deal with things like inflation, high interest rates, and the cooling measures put in place in April 2023 when they’re buying properties in Singapore. So, even though the ABSD rates went up, it hasn’t made their preferred properties less attractive to them.
New Projects in 2024
Peace Centre En bloc – Located in CCR, sold in an en bloc sale, 99-year leasehold, developed by CEL Development and SingHaiYi Group.
Golden Mile Complex En Bloc – Situated in CCR, sold in an en bloc sale, 99-year leasehold, developed by Far East Organisation and Perennial.
Lumina Grand – Found in OCR, sold through GLS, 99-year leasehold, developed by City Developments Limited.
Bukit Timah Link – Located in OCR, sold through GLS, 99-year leasehold, developed by Bukit Sembawang Estates Limited.
Hillhaven – Situated in OCR, sold through GLS, 99-year leasehold, developed by Far East Civil Engineering Limited and Sekisui House.
Chuan Park – Found in OCR, sold in an en bloc sale, 99-year leasehold, developed by Kingsford and MCC Land.
Bagnall Court – Located in OCR, sold in an en bloc sale, freehold, developed by Roxy-Pacific Holdings Limited.
Meyer Park – Found in RCR, sold in an en bloc sale, freehold, developed by UOL and SingLand.
Lentor Gardens – Situated in OCR, sold through GLS, 99-year leasehold, developed by GuocoLand and Hong Leong Holdings.
Tampines Avenue 11 – Located in OCR, sold through GLS, 99-year leasehold, developed by UOL, SingLand, and CapitaLand.
Marina South – Situated in CCR, sold through GLS, 99-year leasehold, developed by Kingsford Huray Development, Obsidian Development, and Polarix Cultural & Science Park Investment.
Jalan Tembusu – Found in OCR, sold through GLS, 99-year leasehold, developed by Sim Lian Land and Sim Lian Development.
Tampines Street 62 EC – Located in OCR, sold through GLS, 99-year leasehold, developed by Sim Lian Land and Sim Lian Development.
Skywater Residences – Situated in CCR, redevelopment project, 99-year leasehold, developed by Alibaba Singapore / Consortium Led by Perennial Holdings.
Newport Residences – Located in CCR, redevelopment project, freehold, developed by Hong Leong Properties Pte Ltd.
Property trends that we may see in 2024:
1: Landowners and renters making use of increased occupancy limits.
2::Shift away from fixed-rate home loans towards the end of 2024.
3: Growing interest in older, mixed-use properties.
4: Savvy buyers seeking deals in the struggling CCR.
5: Prices settling down as we address the shortage of available properties.
6: Increased desire for properties close to MRT stations.
Conclusion:
In conclusion, the Singapore property market in 2024 is expected to see various shifts and trends, influenced by factors like economic growth, government measures, and buyer preferences. While challenges such as high prices and interest rates may persist, there are opportunities for both buyers and sellers to adapt and capitalize on the market. With a focus on emerging trends like increased demand for properties near MRT stations and a shift in loan preferences, stakeholders can adapt to seize opportunities in the dynamic landscape of Singapore property.
