Singapore Q1 2023 private home prices recorded a relatively strong increase of 3.2%, according to flash estimates released by the Urban Redevelopment Authority (URA) on Monday (Apr 3). Meanwhile, you may also be interested in the report “HDB Resale Prices In Q1 2023 Grew 0.9%, Smallest Increase In 10 Quarters“.
This contrasted with the 0.4% increase in the previous quarter, pushing up the first quarter private residential property index up 6.0 points to 194.6 points.
Despite the rise in home prices, sales have fallen by about 8% on a quarter-on-quarter basis and by about 38% on a year-on-year basis. This can be attributed to the decline in affordability as potential buyers face the dual challenges of skyrocketing interest rates and continued price growth.
However, the price increases for non-landed private residential properties varied across different regions. Below is a comparison compared to the previous quarter:
- Core Central Region (CCR): +1.0% versus +0.7%.
- Rest of Central Region (RCR): +4.0% versus +3.1%.
- Outside Central Region (OCR): +1.9% versus -2.6%.
The rise in private home prices can be attributed to more new property launches and the return of buyers after the seasonal lull at the end of 2022. Meanwhile, the marginal hike in property tax in February 2023 seems to have a negligible impact on market demand as buyers continued to chase after more attractively priced homes in the market.
A Slew of Upcoming Property Launches
With a slew of new properties being launched across the island in the coming months, the higher transaction prices will likely nudge up the overall price index further. Around 40 projects are slated for launch in 2023, and these include the following:
- Newport Residences, a mixed-use development at Anson Road in Singapore’s District 2.
- Skywaters Residences, a mixed-use development at Shenton Way in Singapore’s District 1.
- TMW Maxwell, a mixed-used development at Maxwell Road in Singapore’s District 1.
- Blossoms By The Park, a mixed-use development at One-North in Singapore’s District 5.
- The Hill @ One-North is another mixed-use development at One-North in Singapore’s District 5.
- The Continuum, a freehold condo development at Thiam Siew Avenue in Singapore’s District 15.
- Grand Dunman, a mega condo development at Dunman Road in Singapore’s District 15.
- The Reserve Residences, a mixed-use development at Beauty World in Singapore’s District 21.
- Lentor Hills Residences, a condo development near Lentor MRT station in Singapore’s District 26.
- The Arden, a condo development near Phoenix LRT station in Singapore’s District 23.
- Lakegarden Residences, a condo development beside the Jurong Lake Gardens in Singapore’s District 22.
- J’Den, a mixed-use development near Jurong East MRT station in Singapore’s District 22.
Meanwhile, property analysts do not expect private property prices to see any correction in 2023 as developers continue to factor in the higher land, construction, financing, and labour costs incurred. Nonetheless, with the slew of upcoming property launches competing against each other, product differentiation and competitive pricing will be key for any developer to attract demand.