According to official estimates released by the Urban Redevelopment Authority (URA) on Friday (April 28), private residential property prices in Singapore rose by 3.3% in the first quarter of 2023.
This is an increase compared to the 0.4% rise in the previous quarter.
The private residential property price index rose to 194.6 points in the first quarter, an increase of 6.0 points.
However, quarterly sales volume fell by about 8% quarter-on-quarter and was down by about 38% compared to the same period last year.
Singapore real estate expert Leo stated, “The sales slowdown indicates that rising interest rates and continuous price growth have impacted the purchasing power of some potential buyers.”
Prices of non-landed private homes in the Core Central Region (CCR) increased by 0.8%, up from 0.7% in the previous quarter;
Prices in the Rest of Central Region (RCR) rose by 4.4%, up from 3.1% in the previous quarter;
Prices in the Outside Central Region (OCR) increased by 1.9%, rebounding from a 2.6% decline in the previous quarter.
Leo attributed the rise in private home prices to “more new project launches” and the return of homebuyers after the seasonal lull at the end of 2022.
He said, “The slight increase in property taxes in February 2023 did not affect market demand, as buyers are more focused on the property prices themselves, competing for attractively priced homes on the market.”
Leo added that in the coming months, more private homes will be launched in prime districts and city-fringe areas, and these homes are likely to be priced higher than those in other regions. Therefore, the overall property market price index may rise further.
Leo expects about 40 projects to be launched in 2023.
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He said: “Due to factors such as rising land, construction, financing, and labor costs, it is unlikely that private property prices will see a decline. However, considering the more intense market competition this year, developers can offer more attractive products and pricing to attract homebuyers.”
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