Private housing prices dip for the first time since 2020

Sales volume in Q2 excluding condominium units surged to 69.3%.

Private housing prices dipped by 0.2% in Q2, a quick backtrack from the 3.3% increase in the first quarter of 2023, according to government data.

This is also the first time private housing prices fell since Q1 2020.

The Urban Redevelopment Authority said that this is due to a decline in prices for non-landed properties and a significant moderation in the price increase for landed properties, from the previous quarter.

Prices of landed properties increased by 1.1% in Q2, a significant moderation from the 5.9% increase in the previous quarter. Prices of non-landed properties decreased by 0.6% in Q2, a reversal from the 2.6% increase in the previous quarter. 

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Prices of non-landed properties or condominiums in Core Central Region (CCR) declined by 0.1% in during the quarter compared with the 0.8% increase in Q1. Prices of non-landed properties in Rest of Central Region (RCR) declined by 2.5% in Q2 following the 4.4% increase in the previous quarter. The increase in prices of non-landed properties in Outside Central Region (OCR) moderated to 1.2% in Q2, compared with the 1.9% increase in the previous quarter.

Meanwhile, rentals of private residential properties increased by 2.8% in Q2, a significant decrease from 7.2% in the previous quarter.

Volume

Overall sales volume rebounded last quarter as more projects were launched. Overall sales (excluding ECs) surged by 30.7%t from 4,121 units in Q1 to 5,388 units in Q2 2023. However, on a year-on-year basis, sales dipped by 20.9% from 6,811 units in Q2 2022. 

Higher sales were led by the new sales market, where new home transactions, excluding ECs, surged by 69.3%t from 1,256 units in Q1 2023 to 2,127 units in Q2 2023. The number of resale transactions also rose 13.5% QoQ and subsales increased 17.3% QoQ