
Singapore home prices rose at the same pace as initially estimated in the last quarter of 2024, amid analyst forecasts that the government may intervene to cool the market this year.
Private residential prices climbed 2.3% in the fourth quarter from the previous three months, according to final figures released by the Urban Redevelopment Authority on Friday, matching an earlier estimate. For the whole of 2024, prices rose 3.9%.
Rents for private homes – closely watched by expats and locals alike – were unchanged from the previous three months, when they gained 0.8%. It contributed to a 1.9% fall in rents in 2024, the first drop since 2020.
The resurgence in residential values was driven by a flurry of projects released around the end of last year. Lower interest rates attracted buyers, driving an increase in new home sales in 2024. Developers sold 6,469 new units for the whole year, compared with 6,421 in 2023, according to final figures released by the URA.
The three-month Singapore Overnight Rate Average, a benchmark for mortgages, stood at about 2.92% on Friday, the lowest since November 2022.
Housing affordability has emerged as a major concern in Singapore, as the country prepares for a national election. The ruling People’s Action Party, which has been in power since 1965, may face a setback if it loses even a few seats in parliament.
The price of second-hand public housing apartments, where the bulk of locals live, also rose for the 19th consecutive quarter, according to separate data released Friday. For the whole year, prices grew by 9.7%, the highest rate since 2022.
Singapore’s first two private residential launches this year have seen strong demand, with one in the north selling about 86% of its 777 units on the weekend it launched. That’s feeding into louder forecasts from analysts including those at Morgan Stanley, Barclays and Citigroup of potential new curbs.
The strong sales in January “again raises the risk of potential residential cooling measures ahead,” wrote Citigroup analyst Brandon Lee in a note earlier this week.
One closely watched avenue for potential new measures would be Singapore’s annual budget, which is set to be delivered on Feb. 18.
Singapore has managed to slow the sharp jumps in property prices during the pandemic, with multiple curbs introduced in recent years. Last year’s increase in home prices was the slowest since 2020.
A supply ramp up is taking time to filter into the market, keeping prices elevated. About 27,300 private units are set to be completed between 2025 and 2027, according to the URA.
Authorities have so far shown mixed signals on the possibility of further intervention. Singapore’s National Development Minister Desmond Lee said in an interview with local media earlier this month that the government is “not averse” to new curbs, but also called for patience to let the supply and demand side measures work their way through.