Property Market in Singapore Shows Signs of Peaking

In terms of property types, nonlanded properties saw a 2.1% increase in prices in the third quarter, recovering from a 0.6% decline in the prior quarter. The demand from local owner-occupiers in certain regions supported higher prices, although there were declines in the core central area.

On the other hand, landed property prices experienced a significant drop of 4.9% during the quarter, contrasting with a 1.1% rise in the preceding quarter.

Analysts have interpreted the price data as an indication that the property market in Singapore has reached its peak. Tan Tee Khoon, Singapore country manager for real-estate group PropertyGuru, stated in emailed comments the market’s downward trend.

Signs of Waning Demand in Singapore’s Property Market

Signs of waning demand are becoming increasingly evident in Singapore’s private residential property market. The combination of continued uncertainty surrounding rising interest rates and government cooling measures, which have led to higher property acquisition costs, has dampened the enthusiasm of potential buyers. Additionally, the influx of major condominium launches in the second quarter has further diminished the pool of new-home seekers.

According to industry expert Tan, private residential property prices are expected to continue their downward trend. This moderation comes as no surprise given the existing economic landscape and prevailing market conditions.

In contrast, the Housing & Development Board (HDB) reported that resale prices for public housing experienced a modest increase of 1.2% during the third quarter. While this growth is lower than the 1.5% recorded in the previous quarter, it aligns with the average quarterly growth rate of 2.5% observed throughout 2022.

However, despite the slight uptick in prices, resale volumes have declined. The data revealed a sequential increase of 2.9% in the third quarter, but a significant decline of 9.7% compared to the same period last year. These figures represent the lowest volume of resales recorded for the third quarter since 2020.

In response to these developments, the HDB remains committed to its plan of launching 23,000 flats in 2023. This includes approximately 6,800 build-to-order flats scheduled for release in early October, as well as an additional 6,000 flats that will be made available during the final sales exercise in December.