The Singapore property market is poised for various shifts in 2024. The number of private property completions is expected to decline significantly, from over 19,000 in 2023 to approximately 9,875 homes in 2024, a drop of 48.2%. This substantial decrease, particularly noticeable in suburban areas, might lead to increased upward pressure on resale prices, with a potential increase ranging from 3% to 5%. This trend could be a response to the dwindling supply, possibly making existing homes more valuable.
Despite these changes, a largely stable market is anticipated. Savills Singapore expresses optimism for the investment market, suggesting an improvement as interest rates are believed to have peaked. This stability might offer a balanced environment for investors and home-seekers alike, potentially making 2024 a year of steady growth and investment opportunities.
The real estate landscape is also expected to undergo a significant transformation. Buyers are predicted to embrace a new era of discernment in their property choices, indicating a shift in consumer behavior and expectations. This transformation could reflect changing lifestyles, preferences, or economic conditions, and investors and home-seekers must understand these evolving trends to make informed decisions.
Finally, it’s forecasted that home prices might see an increase of up to 5% to 6% by the end of 2024. This projection is based on the developers’ bids in government land sales (GLS) in 2023, which indicate a steady but moderate price growth for new homes. Such an increase might reflect a relatively stable market with ongoing demand, despite the expected reduction in new completions.
In summary, while the Singapore property market in 2024 is expected to face a decrease in the number of new homes completed, it is also anticipated to maintain a degree of stability with potential price increases and a shift in buyer behavior towards more discerning property choices. These trends offer a mixed but cautiously optimistic outlook for the year ahead.