The private property market in Singapore has been on the rise, with prices increasing by 3.2% in the first quarter of 2023. This is a sharp contrast to the meager gain of 0.4% in the previous quarter of 2022. The year-on-year growth has been even more remarkable, with a staggering 11.3% increase in prices.
Landed property prices have seen an impressive surge of 5.7%, driven by the newly launched Pollen Collection project. The demand for terraced houses has led to a median price of $2,199 per square foot, which is a considerable increase from $1,893 psf in the previous quarter.
Although non-landed private home prices have also seen growth, they are predicted to level out or rise marginally in the next few quarters. It is also expected that the overall private home price growth in 2023 will be slower than the 8.6% jump observed in 2022 due to higher borrowing costs and weaker economic growth.
Despite the recent surge in prices, private housing sales have declined for two consecutive quarters. Affordability has become a key concern for buyers as interest rates rise, prices increase, and the economy slows down. However, some new property launches such as Terra Hill, Sceneca Residence, and The Botany at Dairy Farm have maintained stable take-up rates, giving hope for a potential market revival.
The upcoming launch of four new residential projects - Tembusu Grand, The Continuum, Lentor Hill Residences, and The Reserve Residences - will be closely watched to gauge buyer's appetite amidst the rising headwinds.
Despite the challenges, there are several benefits to looking into buying new launches. The recent increase in property launches has led to a boost in prices, with new homes accounting for a higher proportion of total sales. The city fringe area has seen a 4% surge in prices, with Pasir Panjang's Terra Hill project being a standout performer. Meanwhile, the suburbs rebounded by 1.9%, with Sceneca Residence and The Botany at Dairy Farm being among the top-selling projects.
It is important to note that HDB upgraders are a crucial source of demand for private housing. The slowing momentum in HDB resale price growth could potentially dampen demand for private housing, so it is vital to act now if you are considering an upgrade.
In conclusion, the private property market in Singapore has seen significant growth, but the road ahead may not be easy. It is crucial to stay informed and act fast if you are considering buying a property. With new launches on the horizon, this could be the perfect time to make your move!