Mass-Market Private Homes Most Popular, Nearly Half of Transactions Concentrated in OCR

Non-Landed Private Home Resale Prices Rise for Fifth Consecutive Month as August Volumes Heat Up Again

The non-landed private residential resale market continued its upward momentum. According to flash estimates, resale prices of non-landed private homes edged up by 0.3% month-on-month (MoM) in August 2024, marking five consecutive months of growth. Meanwhile, resale volume climbed from 1,036 units in July to 1,088 units, reflecting a 5% MoM increase.

Core Central Region Drives Overall Price Gains

The primary driver behind the overall price growth was the prime Core Central Region (CCR), where resale prices surged 3.7% MoM in August.
 Concurrently, the mid-tier Rest of Central Region (RCR) and the mass-market Outside Central Region (OCR) each posted a 0.4% increase. This underscores a trend of steady, resilient growth across all market segments.

Volume Distribution: Mass-Market Homes Remain the Top Choice

In terms of transaction volume, mass-market homes remained the market mainstay, accounting for 49.2% of total transactions.

Among the remaining deals, the RCR contributed 32.6%, while the CCR made up 18.2%. This demonstrates that against the backdrop of sustained buying demand, purchasers continue to prioritise mature estates that offer both comprehensive amenities and greater price affordability.

Upcoming Launches May Introduce Short-Term Fluctuations

Notably, analysts caution that the resale market may experience fluctuations in the coming months. If upcoming new project launches are priced competitively, some buyers could shift back towards the primary market.

With the conclusion of the Hungry Ghost Month, market activity is gradually regaining traction. Between late September and October, five new projects are slated for launch, including Skye at Holland along Holland Road, The Sen on De Souza Avenue in Bukit Timah, and Zyon Grand on Zion Road.

Looking ahead, buyers will closely evaluate new launch pricing while keeping an eye on whether mortgage interest rates will ease. Should launch prices exceed homebuyer affordability thresholds, the resale market will continue to reap the rewards, drawing more buyers back.

Overall, the non-landed private home resale market is maintaining healthy momentum, underpinned by concurrent increases in price and volume. Future market trajectories will depend on the interplay between developers' pricing strategies and macroeconomic developments. For homebuyers, striking the right balance between new launches and resale properties will be key over the coming months.