In the realm of Singapore’s property market, 2023 has left a trail of uncertainties and challenges, but as we look ahead to 2024, there’s a shimmer of optimism on the horizon. Over 40 new projects are poised for launch in the coming year, promising a diverse range of options stretching from the suburban neighborhoods to the prestigious prime districts.

Singapore’s housing market in 2023 was marked by geopolitical tensions, a slower global economy, a rising cost of living, inflation, and rising interest rates. These issues were compounded by the introduction of property cooling measures in April. Adding to the turbulence was a high-profile money laundering case involving a staggering $2.8 billion worth of luxury properties, vehicles, cash, and other assets.

Ismail Gafoor, the CEO of PropNex, warns, “Many of these uncertainties are likely to persist into 2024, at least during the initial months of the year.” However, there’s a glimmer of hope as market confidence has seen an uptick lately, buoyed by the resurgence in manufacturing activity and positive business sentiment reports.


Successful Launches in 2023

Jden View

Notable success stories in 2023 include the brisk sales of properties such as J’den in Jurong Lake District, Watten House on Shelford Road in District 11, and Hillock Green at Lentor Hills. These launches have injected optimism into the market, with approximately 7,000 new homes sold by year-end, according to Ken Low, Managing Partner of SRI.

Despite the prevailing market challenges, the median price of new homes sold in 2023 saw a significant increase of 15.5% year-on-year. This surge is attributed to a higher uptake of new project launches in the city fringe and prime districts, as reported by SRI.

ERA Singapore estimates that by December 7, around 6,122 new private homes (excluding executive condos) were sold in 2023. Although this projection is slightly lower than the 7,099 units transacted in 2022, the market is holding steady.


Resilence in Singapore Property Market

Singapore’s stable economic position is a beacon of hope in the Asia Pacific region, as affirmed by Marcus Chu, CEO of ERA Singapore. The Monetary Authority of Singapore (MAS) anticipates a GDP growth range of 2% to 3% for the country in 2024.

Moreover, despite a slight increase in retrenchments in the third quarter of 2023, the overall unemployment rate remained low at 2%. Singaporeans’ disposable income and personal savings have also seen healthy growth, further bolstering the home-buying environment.

However, some prospective buyers have adopted a cautious approach in 2023 due to high interest rates and economic uncertainties, potentially deferring their home purchases to 2024.

The CEO of DBS, Piyush Gupta, has noted a decrease in the cost of new mortgages for homebuyers, with some banks offering rates as low as 3.0% to 3.1%. This, coupled with the possibility of further interest rate cuts in the second half of 2024, may stimulate the new home market and boost transaction volumes.

In terms of price growth, ERA forecasts a 5% to 6% increase in home prices for 2024. The growth is expected to be steadier, indicating a more moderate pace compared to previous years.

Huttons Data Analytics is cautiously optimistic, estimating new home sales at 7,000 to 8,000 units in 2024, with an expected price growth of more than 5%, albeit slower than in 2022.

PropNex’s outlook for new home sales in 2024 is in the range of 7,000 to 7,500 units, accompanied by a price growth forecast ranging between 3% and 5%.


Widening Gap for New Launch and Resale Market

Resale Transaction

Developers have shown a willingness to invest in prime sites, as evidenced by recent winning bids in government land sales (GLS) tenders. This includes significant acquisitions such as Toa Payoh Lorong 1 GLS, Clementi Avenue 1, and Pine Grove Parcel B, reflecting a positive sentiment in the property market.

One notable trend is the widening price gap between new and resale homes, which has led some buyers to explore the sub-sale and resale markets. The appeal of newly completed homes, with their pristine condition and immediate availability, has garnered substantial interest.

OrangeTee Research & Analytics reports a decline in the number of completions in 2024, which is expected to shift more attention towards resale properties. This trend suggests that the resale market could witness a significant uptick in 2024, with estimates ranging from 13,000 to 14,000 deals.


Upcoming Launches in 2024

Looking ahead to the exciting launches in 2024, more than 40 projects with over 12,800 units are in the pipeline. January alone is expected to kick off with previews of four projects, including The Arcady at Boon Keng, The Hillshore on Pasir Panjang Road, Hillhaven at Hillview Rise, and Lumina Grand EC at Bukit Batok West Avenue 5.

Lumina Grand, being the only EC launch in 2024, is anticipated to draw considerable attention. Freehold projects and executive condos (ECs) continue to enjoy strong demand, particularly those situated near transport hubs, amenities, and renowned schools.

Newport Residences

In addition to these launches, significant projects are planned for the Core Central Region (CCR). This includes One Sophia, Marina View Residences, Newport Residences, and Skywaters Residences, among others. These developments in prime areas are expected to cater to discerning buyers looking for luxurious living options.

In the Outside Central Region (OCR), projects such as Hillhaven and Lentoria offer attractive housing options for those seeking a suburban lifestyle. The suburbs are becoming increasingly popular among buyers.

For HDB upgraders, developments in areas like Toa Payoh, Serangoon, and Tampines are set to capture their interest. These locations have traditionally experienced robust housing demand, primarily driven by the upgraders from high-value HDB flats.

Clementi Avenue 1 GLS, where the last GLS site was won by MCL Land and CSC Land, is another hotspot, with a new 500-unit condo set to meet the demand for quality housing.

Investor-friendly projects in city-fringe locations also hold appeal. These projects, close to employment centers and amenities, are attractive to investors seeking capital appreciation. Some notable projects in this category include The Hill @ One North and Bukit Sembawang’s Bukit Timah Link GLS plot.

Prime District 15 on the East Coast is poised for a series of launches in 2024, featuring a mix of boutique and large-scale condos. These projects are expected to offer a range of choices to homebuyers.

Additionally, more than 10 boutique freehold or 999-year leasehold projects are scheduled for launch in 2024. These boutique condo projects have garnered considerable interest in 2023 and are expected to continue their popularity into the coming year.

As we approach 2024, the Singapore property market is brimming with possibilities, catering to the diverse needs and preferences of homebuyers across various segments, from prime locations to city-fringe and suburban settings. The year ahead holds promise and excitement for those exploring the real estate landscape.