Singapore Non-Landed Private Home Resale Prices Continue to Climb, Up 1.6% Month-on-Month in January

Backed by steady market demand, Singapore's non-landed private residential resale market continued its upward trajectory, with resale prices rising 1.6% month-on-month in January—significantly higher than the 0.1% increase recorded in December.

Property Prices Continue to Rise, Led by the Core Central Region

Latest flash estimates show that resale prices in the Core Central Region (CCR) posted the highest month-on-month increase of 2.8% in January, while the Rest of Central Region (RCR) and Outside Central Region (OCR) rose by 1.7% and 1.2% respectively.

On a year-on-year basis, overall non-landed private home resale prices climbed 6.1% compared to January last year. The OCR registered the largest gain at 6.5%, followed by the RCR at 5.8%, while the CCR grew by 4.1%.

Transaction Volumes Dip, but Long-Term Momentum Remains Positive

Despite rising prices, resale transaction volume fell 9.2% month-on-month in January to 884 units. However, on a year-on-year basis, resale volume was still up 14.3% and stood 12.1% above the five-year average for the month of January.

By market segment, the OCR accounted for 51.2% of total resale transactions in January, while the RCR made up 30.8%, and the CCR contributed 17.9%.

Notably, the highest transacted resale price in January was recorded at The Ritz-Carlton Residences Singapore Cairnhill, where a unit changed hands for $13.8 million.

Higher Capital Gains as Market Demand Remains Resilient

Supported by climbing property values, the median capital gain for resale transactions in January reached $404,000, up $36,000 from December. Capital gains are calculated based on the difference between the transacted resale price and the previous purchase price of the same unit.

With steady demand and tight resale inventory, condo resale prices are expected to maintain a modest upward trend. Growing demand for larger homes, the appeal of move-in-ready units, and the widening price gap between new launches and resale homes are likely to sustain interest in the resale market.

Competition from New Launches Impacts Resale Volumes, but Prices Retain Upside

The dip in January's resale volume was likely influenced by competition from new launches. Popular developments such as Bagnall Haus on the East Coast and The Orie in Toa Payoh released a combined 1,083 new private residential units in January, drawing strong buyer interest.

Nevertheless, while new launches captured market attention, resale condo demand remained resilient. Resale non-landed private home prices are projected to rise between 4% and 7% in 2024, as overall demand continues to outpace supply.

Market Outlook: Where Are Property Prices Headed?

Even as Singapore's property market navigates the macroeconomic environment, interest rate policies, and evolving buyer preferences, the resale market continues to exhibit resilient growth. For prospective buyers looking to enter the market, conditions remain attractive, while existing property owners can capitalise on healthy capital gains from price appreciation.

As the market evolves, Singapore's non-landed private residential sector may witness further developments throughout 2024. Stay tuned as we track the latest market movements to bring you first-hand real estate insights!