Turning points in Singapore’s property markets

PRIVATE home prices in Singapore dipped 0.2 per cent in the second quarter of 2023, the first time the price index has registered a decline in three years. But the bigger takeaway from the latest government data was the significant slowdown in the residential rental market, writes Kalpana Rashiwala. 

Some are now expecting housing rents to fall in the second half, after topping out in April and in the wake of a blistering 30 per cent increase in 2022. Overall, private residential rents are up 57 per cent since bottoming in the third quarter of 2020.

While private housing prices fell in Q2, sales volume continued to rise - in developers’ sales, sub-sales and the secondary market. Liquidity is clearly present. But a rebalancing of demand is perhaps playing out, as buyers weigh options in the new and resale markets at today’s high prices. Analysts anticipate new condo sales will jump in July and in the weeks ahead, with many new launches on offer, though developers may take longer to clear projects.