Singapore private home prices to increase by 3-4% this year

Prices rose by 2.3% in the first half of 2024.

According to JLL, the planned launches of a number of major projects should see developers’ sales for 2H24 improve from the 1,889 units sold in 1H24. 

These projects include Sora (440 units), Kassia (276 units), The Chuan Park (916 units), Emerald of Katong (847 units) and The Collective at One Sophia (367 units).

Here’s more from JLL:

However, until interest rate cuts materialise and economic conditions improve, prospective homebuyers are expected stay cautious and selective as they await the lineup of new project launches.

Barring unforeseen circumstances, JLL Research expects developers to sell 4,000 – 6,000 new units in 2024, lower than the 7,000 – 8,000 units initially anticipated and below the 6,421 units sold in 2023.

Still, private home prices which have risen by 2.3% in 1H24, are projected to increase by 3% to 4% in 2024, milder than the 6.8% increase in 2023. Although home prices have escalated significantly and buyers are now more resistant to higher price levels, there is potential for a moderate growth.

The gradually expanding but still-low unsold inventory as well as the prevailing low unemployment rate and strong household liquidity should support price upsides. Developers are also expected to hold up prices due to higher land and construction costs committed for new projects. Selected new projects with appealing attributes might also have the potential to command higher prices.

In the leasing market, the completion of close to 9,100 private residential units (excluding ECs) for the rest of 2024 is anticipated to continue easing the supply crunch and promote a more stable market. Rents are anticipated to stabilise in the second half of the year, with the potential for a marginal upside towards the years’ end as the economy improves as projected and rent expectations align between landlords and tenants.