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Private home prices gained 3.2% in the first quarter of 2023 even as sales volume dropped. Landed prices surged 5.7%, up from a 0.6% increase in the previous quarter, driven by new landed project Pollen Collection,which sold 8 units.
Private home prices gained 3.2% in the first quarter of 2023 even as sales volume dropped. Landed prices surged 5.7%, up from a 0.6% increase in the previous quarter, driven by new landed project Pollen Collection, which sold 8 units. Median prices for its terraced houses jumped from $1,893 psf in Q4 2022 to $2,199 psf in Q1 2023.
Non-landed private home prices are likely to increase slowly for the rest of the year. Overall growth should be slower than last year, due to high interest rates and weaker economic growth. One factor to ensure price growth is that developers are unlikely to reduce prices due to low supply of new project units, higher development risks and construction costs.
Prices went up but volume dropped
Transaction volumes dipped 8% quarter on quarter, 38% year on year. Despite strong take-up rates at new launches Terra Hill, Sceneca Residence and The Botany at Dairy Farm, buying sentiment has turned cautious.
The upcoming launch of the 638-unit Tembusu Grand, 807-unit The Continuum, 598-unit Lentor Hill Residences and 740-unit The Reserve Residences will be watched for the strength of buyers’ appetite amid market uncertainties.
Prices mostly driven up by New Projects
Nonetheless, first-quarter prices got a boost from mainly new project launches. Buyers also seem unaffected by the increase in buyer’s stamp duty for properties above $1.5 million announced in February.
