Singapore Property Market Report Q4 2023

Singapore Property Market Report Q4 2023
Singapore Property Market Report Q4 2023

In the last quarter of the year, the Singapore residential market is showing signs of further stabilisation, with cooling demand in both the public and private property markets. Similarly, the rental market, especially the private residential segment, is likely to cool.

More BTO flats were launched, drawing first-time home buyers away from the HDB resale market. More non-landed homes were also completed in 2023, as compared to the previous year.

The high interest rate environment, April 2023 property cooling measures, and uncertain economic prospects have dampened buying sentiments for non-landed homes. Likewise, elevated construction amounts, greater financing costs, and high asking prices for landed homes have pushed buyers to recalibrate their expectations.

Contents

  1. Get the GuruView

  2. Singapore Property Sale Market Index Q4 2023

  3. Singapore Property Rental Market Index Q4 2023

  4. Conclusion

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Get the Guru View: Key Findings of the Singapore Property Market Report Q4 2023

Macro Trends Observed in 2023

While Singapore’s economy continued to do well and unemployment rates remained fairly stable in a challenging climate, economic slowdowns and escalating geopolitical tensions have restricted more robust growth. In turn, property seekers are predicted to exercise greater caution which may lead to a further softening in housing demand.

While interest rate hikes have slowed in 2023, a high interest rate environment endures. In turn, property acquisition and borrowing costs remain high. However, the stabilising interest rates and mortgage rates translate to a reduced urgency for buyers and sellers to finalise purchasing decisions, potentially causing market activity to decelerate.

Additionally, the Singapore government has introduced a slew of housing policy changes to reign in the market and make public housing more affordable.

Singapore Property Sale Market Index Q4 2023

In Q3 2023, the Singapore residential market saw demand dipping across all segments. In the three segments, landed homes saw the steepest demand drop. Still, the value proposition of landed homes increased amid the uncertain economic climate, given its scarcity and limited supply.

Rising home acquisition costs and economic uncertainties were two factors that may have given would-be sellers some pause from putting their properties on the market. Foreign property owners also held back – under the current ABSD framework, these individuals faced high property replacement costs.