The Singapore Property Market: What to Expect in 2024

Hello! Singapore’s property market has been a hot topic lately, and if you’re curious about what’s going on and what to expect in 2024, you’ve come to the right place. Whether you’re a potential buyer, a current homeowner, or just interested in the real estate buzz, this article will give you a clear and friendly overview of the current trends and future outlook.

The Current State of the Market

Let’s start with where we are right now. The Singapore residential property market has shown signs of stabilizing. This means that prices and demand aren’t swinging wildly but are finding a steady pace. For example, in the first quarter of 2024, both demand and asking prices stayed pretty much the same as they were at the end of 2023, with prices even going up by a tiny bit (1% year-on-year).

Private Residential Sector

Now, let’s talk about private homes. At the end of 2023, there was a noticeable drop in the number of new homes being sold. Only 135 new private homes were sold in December, the lowest number in 15 years! This was partly because fewer new projects were launched and also because people usually take a break from big purchases during the year-end holidays.

Despite this, home prices have been growing, just not as fast as before. In 2023, private home prices went up by 6.7%, compared to higher growth in the previous years. Most of this growth happened in the suburbs, where people find homes a bit more affordable than in the city center.

HDB Market

What about HDB flats, which most Singaporeans live in? In 2023, the prices of resale HDB flats went up by 5.8%, which is slower than in previous years. Interestingly, more HDB flats are being sold for $1 million or more! In 2023, 470 such flats were sold, a record high. This shows that people are willing to pay a premium for homes in attractive locations without too many restrictions.

Rental Market Trends

For those renting, there’s some cooling off happening. Rents have been going down for four straight quarters. Why? More homes, both private and public, were completed in 2023, which means more options for renters. This increased supply has eased the pressure on rents, leading to a 13.5% drop in rental demand in the first quarter of 2024.

Economic and Policy Factors

Singapore’s economy is in pretty good shape. The government expects the economy to grow by 1% to 3% in 2024. Unemployment has stayed low at 2%, and the cost of borrowing money for a home hasn’t changed much, which is good news for potential buyers.

The government has also made some small changes to help homeowners. For example, they’ve adjusted property tax bands and given some stamp duty concessions to seniors downsizing their homes. These tweaks are aimed at making homeownership a bit easier and keeping the market balanced.

Commercial Real Estate and Heritage Shophouses

Let’s switch gears to commercial real estate. This sector has been doing well, with a 14% increase in transactions in the first quarter of 2024. A lot of this growth is thanks to big investments in retail and hospitality. Heritage shophouses, those charming old buildings, are also in high demand. They’re fetching high prices, similar to prime properties in cities like New York and London.

Looking Ahead

So, what’s next for Singapore’s property market? Here are a few key points to keep in mind:

• Government Policies: The government’s decisions on property cooling measures will be crucial. If they introduce more measures, it could slow down the market. On the flip side, policies that make homes more affordable could boost demand.
• Economic Conditions: The global economy, especially how the US and China are doing, will impact Singapore’s property market. A strong global economy can boost confidence and demand here.
• Interest Rates: Mortgage rates are a big deal. If they stay low or go down, more people might decide to buy homes. But if they go up, it could make buying a home more expensive.

Despite some uncertainties, there are still plenty of opportunities for smart investors. Well-located properties, especially in areas with good amenities and schools, are always a good bet.

Conclusion

To sum up, Singapore’s property market is looking stable as we head into 2024. While there are some challenges, like global economic uncertainties and potential interest rate hikes, the market’s resilience is encouraging. If you’re thinking about buying or investing, keep an eye on the trends, stay informed, and consider seeking advice from real estate professionals.

Remember, the property market is always evolving, and staying updated can help you make the best decisions for your needs. Happy house hunting or investing, and here’s to a successful 2024 in Singapore’s vibrant real estate scene!

We want your property journey to be stress free. Click here to register and gain exclusive access to our free buyer’s guide!

Why Register Early?

✨ Early Bird Privileges: Secure your spot at the forefront and enjoy attractive early bird discounts that will not be available later.

📖 Project Brochure: Have first priority access to the project brochure detailing the site plan, floor plan and facilities.

🔍 Priority Preview Access: Be the first to explore the elegant designs, state-of-the-art amenities, and lush landscapes.

😎 Monthly Updates: We will help you track and update you with any information available to us.

📞 Personalised Consultations: Our dedicated team is on hand to provide you with tailored information, answer your queries, and guide you through the seamless registration process.

How to Register?
Getting on the list is easy! Simply reach out to us through a call or message. Let us know your interest, and we’ll take care of the rest. By registering, you’re not just reserving a spot; you’re stepping closer to the home of your dreams.