Singapore flats become more affordable for buyers
Flats in Singapore are in high demand. This is evidenced by official data released at the end of 2024. According to the statistics, housing sales in the country have reached a record level for the last 10 years.
In November 2024 alone, the market recorded the sale of 2,557 new apartments. This figure exceeded the results of the previous six months. According to analysts, the key factor behind the surge in demand is the increase in supply in the low-cost segment. Many developers focus on the mass market, which has revived after the revision of credit conditions. Local banks have reduced the cost of loans for property purchases. Combined with pent-up demand, this has stimulated buyer activity. They were most interested in apartments in the suburbs. One project in eastern Singapore, for example, has already sold more than 99% of its affordable units.
For the last two quarters of 2024, the situation in the residential sector was as follows:
– sales in the third quarter totalled 1,160 homes;
– 60% higher than the second quarter;
– the prestigious Bukit Timah project sold more than 50% of its units;
– the private house price index declined by 0.7% for the first time in 5 quarters.
These factors point to a strong recovery in Singapore’s property market. The sector has faced significant challenges in recent years, including tighter inflation measures and higher interest rates, which have adversely affected market activity. The economic slowdown, which has impacted purchasing power, has exacerbated the situation.
Singapore property market issues and peculiarities
Notably, Singaporean property is among the most expensive in the world. As a result, the authorities are wary of the frenzy, fearing that prices will skyrocket. At the same time, the government does not intend to introduce strict measures to regulate the segment. Such restrictions could negatively impact public sentiment, and given the upcoming elections in the country, the authorities do not want to alienate the electorate.
The situation in the local property market has long been concerning. Despite years of government efforts to slow price growth, no significant results have been achieved.
One of the most recent measures was to double the stamp duty for foreign buyers. It is twice as high, making the tax one of the highest in the world. This has had a negative impact on the growth rate of the market. In addition, many developers have abandoned new projects. As a result, the supply of new properties has decreased significantly. The luxury property sector, which has traditionally attracted foreign buyers, has also suffered.
Lower interest rates opened up new opportunities for developers. They turned their attention to affordable housing projects, including apartments. Around 3,000 properties were put on the market in November 2024. This is almost equal to the cumulative supply in the previous three quarters.