Singapore Sees Fastest Surge in Housing Prices in a Year by Q4 2024

Foreks - Singapore's residential property prices have rebounded in the fourth quarter of 2024 after experiencing a decline for the first time in over a year, influenced by higher sales momentum in the third quarter. According to preliminary estimates released by the Urban Redevelopment Authority (URA), the residential property price index increased by 2.3% in the fourth quarter of 2024. This reversed the 0.7% decrease observed in the third quarter and marked the largest increase in the past year.

Data showed that the sales transaction volume rose by approximately 25% quarter-on-quarter in the fourth quarter. For the entirety of 2024, prices are expected to rise by 3.9%, down from increases of 6.8% and 8.6% in 2023 and 2022, respectively.

The URA noted that despite the recent interest rate cuts by the U.S. Federal Reserve (Fed), mortgage rates in Singapore are expected to remain high compared to the low levels seen in the past decade, urging households to be cautious when purchasing homes and securing loans.

Land prices in the country dropped by 0.9% in the fourth quarter, following a 3.4% decline in the third quarter. Non-landed residential prices saw a 3.2% increase compared to a 0.1% rise in the previous quarter, influenced by sales transactions in some newly launched projects. The URA will update its preliminary estimates on January 24.