April non-landed private home resale prices up 1.5% m-o-m, resale volume hits highest level since March last year

Local non-landed private home resale prices rose by 1.5% month-on-month in April, breaking a six-month period of flat growth. Furthermore, private home resale volume hit a new high since March 2023.

Flash estimates show that resale prices in the Rest of Central Region (RCR), which represents mid-tier private homes, rose by 2% month-on-month. In contrast, resale prices in the Core Central Region (CCR), representing prime private homes, edged up by 0.3%, while prices in the Outside Central Region (OCR), representing mass-market private homes, inched up by just 0.1%.

However, compared to a year ago, the OCR recorded the largest increase in private home resale prices at 7.2%. Resale prices in the CCR and RCR rose by 0.2% and 5.2% respectively.

In terms of transaction volume, 1,122 units changed hands in April, up 23.2% from the 911 units transacted in March, and representing a 25.8% year-on-year increase. Mass-market homes accounted for the largest share of transactions in April at 45.5%, followed by mid-tier homes at 31.8%, and prime homes at 22.8%.

Foreign buyer private home resale transactions nearly doubled to 20 units in April

URA Realis data indicates that the number of resale private homes purchased by foreign buyers almost doubled from 11 units in March to 20 units in April, pointing to an encouraging trend. Nonetheless, compared to 44 units in the same period last year, foreign purchases were still down by 54.5%.

The increase in foreign buyers may be due to seasonal factors, as property market activity typically picks up in the second quarter. Despite coming off a low base, foreign buying demand is gradually recovering.

The government raised the Additional Buyer's Stamp Duty (ABSD) for foreign buyers from 30% to 60% on 27 April last year, while the ABSD for Singapore Citizens purchasing their second residential property was raised from 17% to 20%.

Private home resale price growth expected to moderate this year

The proportion of foreign buyers in the resale private home market rose from 1.2% in March to 1.9% in April. These buyers were mainly from the United States, followed by those from Hong Kong, Mainland China, South Korea, Norway, and Taiwan.

The Residences at W Singapore Sentosa Cove and Cuscaden Reserve were among the most popular resale projects in April. The former saw 37 units change hands at an average price of $1,782 psf, while the latter saw 29 units sold at an average price of $3,075 psf.

In terms of top transacted prices, a 3,057 sq ft unit at The Marq on Paterson Hill fetched $13 million, making it the highest resale transaction in April. However, even though this freehold property is located in prime District 9, the seller is estimated to have incurred a loss of $900,000 compared to the purchase price in September 2011.

Looking ahead at resale market trends, with fewer major new launches expected in the coming months, the resale market is likely to remain resilient and active. Resale private home prices are projected to grow by 4% to 6% this year, moderating notably from the 7.3% increase recorded last year.