The landed property market in Singapore has seen a moderated pace of price growth in the second quarter of 2024, with an increase of 1.8%. This marks the third consecutive quarterly rise but at a slower pace compared to previous quarters. This article delves into the factors influencing this trend and what it means for buyers, sellers, and the overall property market.

Slower Growth but Continued Demand

In 1Q2024, landed home prices grew by 2.6%, and in 4Q2023, the growth rate was 4.6%. The first half of 2024 saw a cumulative price growth of 4.5%, a drop from the 7% recorded in the same period the previous year. Despite the slower growth, demand for landed homes remains strong, driven primarily by Singaporeans moving up the housing aspiration ladder  .

High-Value Transactions on the Rise

Interestingly, the number of high-value transactions (properties priced at $10 million and above) increased from 33 in 1Q2024 to 38 in 2Q2024, marking the highest quarterly increase since 1Q2023. This surge is attributed to affluent buyers seeking long-term investments and prestigious addresses, spurred by the limited supply of high-end landed properties .

Market Dynamics and Buyer Sentiment

The demand for landed homes is expected to remain robust, particularly among high-net-worth individuals and newly-minted Singapore citizens. Most sellers have maintained their asking prices and premiums, with properties listed at or slightly under market valuations being quickly snapped up. This buyer behavior reflects a strong confidence in the market, bolstered by Singapore’s favorable economic outlook .

Good Class Bungalows (GCB) Market

The GCB market, a segment of the high-end landed property market, also saw significant activity. There were at least 10 caveated transactions in the first half of 2024, an increase from seven in the same period in 2023. Notable transactions included the sale of a GCB at Ford Avenue for $39.5 million and another at Bin Tong Park for $84 million .

Future Outlook

Experts predict a positive outlook for the landed residential market for the rest of the year. The scarcity of available properties in the resale market will likely continue driving price growth. Buyers’ preference for larger living spaces and exclusive residences will support the demand for landed properties, particularly among private home upgraders and high-net-worth individuals.

Implications for Buyers and Sellers

For potential buyers, the current market conditions suggest that while prices are rising, the growth rate has moderated, offering a relatively stable entry point into the landed property market. For sellers, the continued demand and limited supply mean that holding firm on price expectations could yield favorable outcomes.

Conclusion

The 1.8% growth in landed home prices in 2Q2024 reflects a balanced market where demand remains strong despite a slower growth rate. The high-value transaction segment shows vibrant activity, indicating robust investor confidence. With the ongoing demand for larger and more exclusive living spaces, the landed property market in Singapore is poised for sustained growth throughout the year.

Source: https://www.edgeprop.sg/property-news/landed-home-price-growth-slows-down-18-2q2024