Singapore Property Sector - Strong home sales momentum

Private residential prices rose 3.9% in 2024

Private home prices rebounded 2.3% QoQ in 4Q24, bringing full year 2024 price increases to 3.9%. 

While the private residential price index dipped 0.7% Quarter-On-Quarter (QoQ) in 3Q24, its first decline since 2Q23, this turned out to be a blip.

The pace of increase in the quarter was in line with flash estimates released on 2 January 2025, as prices were mainly led by newly-launched projects. 

Overall, 2024 private residential price increases continue to be led by non-landed properties which increased 4.7% Year-On-Year (YoY) vs. 0.9% YoY for landed properties. 

Across the private residential non-landed subsegments, 4Q24 prices were led by the Outside Central Region (OCR) at 3.3% QoQ, followed by Rest of Central Region (RCR) at 3.0% QoQ and Core Central Region at 2.6% QoQ. 

In the OCR, price increases were likely led by new launches Norwood Grand and Chuan Park, both of which set new pricing benchmarks in its locale. 

Similarly, prices rose across market subsegments in 2024, with OCR up 3.7% YoY, the CCR up 4.5% YoY, while the RCR saw the strongest price growth at 5.8% YoY. 

HDB resale prices up 9.6% in 2024

HDB resale prices increased 2.5% QoQ in 4Q24, bringing 2024 overall HDB resale price increases to 9.6%. 

To boost the supply of public housing, 19,600 Build-To-Order (BTO) new HDB flats will be launched in 2025. 

Residential transaction volumes also recovered

Overall private residential volumes saw a strong pick-up in what is typically a muted year-end, with 4Q24 primary sales of 3,420 units up almost three times QoQ (194.8% QoQ).

This was due to exceptionally strong take-up rates for new launches in the quarter and a back-end loaded new launch schedule. 

Notable new launches which contributed included Chuan Park, Union Square Residences, The Collective at One Sophia, Emerald of Katong, and Nava Grove, which have also catalysed the sale of existing launched projects in the vicinity, given the new benchmark average selling prices set. 

Secondary sales were broadly flat QoQ at 4,013 units in 4Q24, bringing overall residential transaction volumes to 7,433 units in 4Q24, the highest quarterly volumes transacted since 4Q21. 

For the full year 2024, overall transaction volumes reached 21,950 units, up a healthy 15.3% YoY and surpassing prior expectations. 

First annual rent decline since 2020

From 3Q23 to 2Q24, private residential rents declined by a cumulative 4.8%, although rents have since stabilised in the second half of 2024, with residential rents flat in 4Q24. 

On a full year basis however, private residential rents are still down by 1.9% YoY in 2024. That said, we highlight that the 2024 rent declines have to be seen on the back of a 55% increase in rents over the four years from 4Q20 to 4Q23. 

While private residential vacancy rates rose 1.1 percentage points (pp) to 7.2% in 3Q24, this was partially reversed in 4Q24, where vacancy rates closed the year at 6.6%, down 0.6pp. Vacancy rates continue to trend in line with historical averages of 6.3%. 

Given the pick-up in primary sales momentum, albeit with additional new supply coming onstream, the overall number of unsold private residential units continued to edge down in 4Q24, at 19,606 units as at the end of the year. 

8,460 private residential units (excluding Executive Condominiums) were completed in 2024, down from 19,968 units in 2023, with a further moderation in the supply pipeline in 2025, with only 5,856 units to be completed in 2025. 

Singapore listed developers trade at a significant discount to book value

Singapore-listed property developers currently trade at an average price-to-book (P/B) ratio of 0.37x, reflecting the relatively low returns they are generating. 

At the same time, many have diversified geographically and shifted focus away from the local property market and residential developments. 

Among them, GuocoLand has significant exposure to the Singapore residential market, concentrating on premium developments. The company also generates recurring income through its investment properties. Its stock trades at a P/B ratio of 0.36x, in line with the sector average. Read our report on GuocoLand here

Related links:

• City Developments share price history and share price target
• CapitaLand investment share price history and share price target
• UOL share price history and share price target
• GuocoLand share price history and share price target

Download the full report here. 

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