Private housing prices and sales transaction volume declined in 3Q2024

• Price and sales momentum in the private residential market slowed, with overall private housing prices declining in 3rd Quarter 2024 for the first time since 2nd Quarter 2023. Sale transaction volume also moderated as compared to the previous quarter.

• For the first three quarters of 2024, the overall private housing prices saw an increase of 1.1%, a significant moderation from the 3.9% gain over the same period in 2023.

• While macroeconomic conditions remain sound, the economic outlook is subject to uncertainties, and market sentiments continue to be sensitive to geopolitical developments and global interest rate changes. Despite recent interest rate cuts by the US Federal Reserve, domestic mortgage rates are expected to remain elevated relative to the low levels seen over the past decade. Households should continue to exercise prudence when purchasing properties and taking on mortgage loans.

1.  The Urban Redevelopment Authority (URA) released the flash estimate of the price index for private residential properties for 3rd Quarter 2024 today.

2.  The flash estimate of the private residential property price index decreased by 1.1% on a quarter-on-quarter basis in 3rd Quarter 2024, reversing the 0.9% increase in the previous quarter (see Annex A [PDF, 44 KB] [PDF, 45kb] and Annex B [PDF, 64 KB] [PDF, 65kb]). The cumulative price change for the first three quarters of 2024 was a 1.1% increase, a significant moderation from the 3.9% gain over the same period in 2023. Sales transaction volume fell by about 11% on a quarter-on-quarter basis in 3rd Quarter 2024¹. For the first three quarters of 2024, sales transaction volume fell by 8.1% from the level a year ago.

3.  Prices of non-landed properties decreased by 0.3% in 3rd Quarter 2024, a reversal from the 0.6% increase in the previous quarter. Prices of non-landed properties in the Core Central Region decreased by 1.5%, extending the 0.3% decrease in the previous quarter. Prices of non-landed properties in the Rest of Central Region increased by 0.2%, moderating from the increase of 1.6% in the previous quarter. Prices of non-landed properties in the Outside Central Region decreased by 0.1%, compared to an increase of 0.2% in the previous quarter. For landed properties, prices decreased by 3.8% in 3rd Quarter 2024, compared to the 1.9% increase in the previous quarter (see Annex C [PDF, 49 KB] [PDF, 49kb]).

4.  The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-September. The statistics will be updated on 25 October 2024 when URA releases its full set of real estate statistics for 3rd Quarter 2024. Past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual changes could be significant when the change is small. The public is advised to interpret the flash estimates with caution.

¹ Sale transaction volume (up to mid-Sep) totalled 4,372 in 3rd Quarter 2024, compared to 4,915 in 2nd Quarter 2024.