Prices of private residential property rose 1.4 per cent in the first quarter of 2024, figures released by the Urban Redevelopment Authority (URA) showed on Friday (Apr 26).

This was a tad lower than the 1.5 per cent flash estimate by the agency earlier this month, and follows an increase of 2.8 per cent in the previous quarter. Private home price growth was led by landed properties, which grew 2.6 per cent in Q1, from 4.6 per cent in the previous quarter.

Meanwhile, prices of non-landed properties increased 1 per cent in the first quarter, versus the 2.3 per cent rise in the previous quarter. 

By region, prices in the prime Core Central Region saw the biggest increase of 3.4 per cent. This was followed by the city fringe or Rest of Central Region with a 0.3 per cent price growth, and the suburban Outside Central Region with 0.2 per cent.

In the primary market, developers launched 1,304 private homes, excluding executive condos (ECs), for sale in Q1, some 23 per cent more than Q4’s 1,060 units. Sales volume consequently rose to 1,164 units in Q1, from 1,092 units in Q4.‍

There were 2,689 resale transactions in the first quarter, compared with 2,831 units transacted in the prior quarter. These deals accounted for 63.6 per cent of all sales transactions in Q1, marginally higher than the 65.3 per cent in Q4. 

On the rental front, URA’s overall index was down 1.9 per cent in Q1, extending the 2.1 per cent decline in the prior quarter. The vacancy rate inched down to 6.8 per cent as at end-Q1, from 8.1 per cent in Q4. 

The slowdown in the rental index follows the completion of 241 private housing units and no ECs completed in the first quarter. 

In the remaining three quarters of 2024, 10,561 private homes, including ECs, are set to be ready, based on expected completion dates reported by developers to the authorities. An additional 6,316 units are expected to be completed in 2025.

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Credit: The Business Times