[2024: Is It a Good Time to Enter the Private Resale Market?]

Source: URA, ERA Research & Market Intelligence

When there is an ample supply of private residential homes, buyers naturally have more choices. In the first nine months of 2023, an estimated 14,000 private residential units (excluding Executive Condominiums) are expected to obtain their Temporary Occupation Permit (TOP), which legally permits homeowners to move in.

Furthermore, with more than 9,800 units projected for completion this year, the supply of private homes in 2024 is set to increase substantially in the coming months.

Source: URA, ERA Research & Market Intelligence

Nonetheless, the most pressing question remains: what impact will this surge in unit completions have on the private resale property market? And what does all this mean for homebuyers?

Naturally, the influx of supply is welcome news, as it provides prospective buyers looking to enter the private residential market with a broader selection of options.

Currently, of the 14,000 private homes obtaining TOP in the first nine months of 2023, the majority are situated in the Rest of Central Region (RCR) and Outside Central Region (OCR). This means buyers house-hunting in these locales will enjoy greater opportunities to find a suitable home.

Source: URA, ERA Research & Market Intelligence

From a market perspective, an increase in private resale housing supply could also drive a corresponding uptick in transaction volumes. Factoring in resales, the number of resale private properties transacted in 2024 could range between 13,000 and 14,000 units, with resale prices climbing around 4% to 6% year-on-year.

Disclaimer

This information is provided in good faith and does not relieve any party of their responsibility to verify information from relevant sources and/or seek appropriate advice from relevant professionals, such as valuers, financial advisers, bankers, and solicitors.

For the avoidance of doubt, no liability or responsibility is assumed for the accuracy, reliability, and/or completeness of the information provided above.