As Singapore transitions into 2024, the real estate landscape is poised for evolution, marked by the introduction of new BTO classifications and the completion of major infrastructure projects like theThomson-East Coast Line (TEL) expansion. These developments are expected to significantly influence property market dynamics, enhancing accessibility and potentially increasing the attractiveness of properties in the eastern region.

The government's implementation of property cooling measures in 2023, including heightened Additional Buyer's Stamp Duty (ABSD) rates for foreigners and adjustments to the Loan-to-Value (LTV) limits, aimed to temper the private property market's fervor. Despite These interventions, the private property price index exhibited modest growth, with an anticipated overall price increase of 2.5% to 3.5% for 2024. This growth reflects a stabilizing market adjusting to the regulatory changes and macroeconomic environment.

The year 2023 saw approximately 6,319 new home units transacted, a testament to the enduring appeal of Singapore's real estate amidst cooling measures and economic challenges. Leading the sales were projects like The Reserve Residences, Grand Dunman,and Lentor Hills Residences, highlighting the market's responsiveness to well-conceptualized developments. The upcoming year promises a fresh wave of property launches, anticipated to invigorate the market with a diverse array of options catering to varied buyer preferences.

An interesting trend is the gradual increase in property purchases by foreigners, despite stringent cooling measures. This uptick suggests a cautious yet persistent interest from international buyers, driven by Singapore's stable market environment. Additionally, the government's plans to release more private residential units under the Government LandSales (GLS) program indicate a proactive approach to managing supply in response to demand dynamics.

The resale market, particularly for HDB flats, has remained vibrant, with significant transactions and a slight increase in resale price index, pointing towards a healthy demand for public housing. This sector is buoyed by factors like the introduction of stricter eligibility criteria for BTO applications and enhancements to housing grants, steering some buyers towards the resale market.

Moreover, the rental sector is undergoing adjustments with the introduction of policies aimed at moderating demand, including the launch of serviced apartments for those in need of interim housing solutions. These initiatives, along with the increase in the occupancy limit for larger flats, are designed to alleviate rental market pressures, providing more housing options and facilitating smoother transitions for tenants awaiting the completion of their permanent homes.

Looking ahead, Singapore's property market is expected to continue its trajectory of steady growth and adaptation. The completion of new residential units, both public and private,over the next few years will likely have a balancing effect on the rental market, accommodating the housing needs of a growing population and maintaining the city-state's appeal as a prime location for living and investment.

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Prepared By:
Mohan Sandrasegeran
Head of Research & Data Analytics