CCR
RCR
OCR
Source: URA
Market Outlook
Investors should remain cautious as growth slows and focus on real estate sectors most likely to weather any bumps in the property market. Although this rise in private residential property prices is encouraging, the upside is limited by higher borrowing costs.
Key takeaway
- The private residential property index increased by 3.2% in Q1 2023, compared to a 0.4% increase in the previous quarter.
- Sale transaction volume fell by about 8% on a quarter-on-quarter basis and by about 38% on a year-on-year basis in Q1 2023.
- Prices of non-landed private residential properties in the Core Central Region (CCR) increased by 1.0%, in the Rest of Central Region (RCR) increased by 4.0%, and in the Outside Central Region (OCR) increased by 1.9%.
Good news for property owners in Singapore as private home prices continued to rise in the first quarter of 2023, with an increase of 3.2%. This marks an overall increase of 27.9% since February 2023. However, sale transaction volume has fallen by 8% quarter on quarter and a significant 38% year on year. Despite this, the volume of transactions for Resale HDBs increased by 1.5%. Even with the drop in sale transaction volume, new private home sales have increased for the third consecutive month in March 2023, rising by 13.6% month-on-month. Investors should remain cautious as growth slows and focus on real estate sectors most likely to weather any bumps in the property market. Although this rise in private residential property prices is encouraging, the upside is limited by higher borrowing costs.
The Urban Redevelopment Authority (URA) has released its flash estimate of the price index for private residential property for the first quarter of 2023, showing an overall increase of 3.2% compared to the previous quarter. The private residential property index increased by 6.0 points from 188.6 points in Q4 2022 to 194.6 points in Q1 2023. However, sale transaction volume fell by about 8% on a quarter-on-quarter basis and by about 38% on a year-on-year basis in Q1 2023, indicating a slowdown in market activity.
Prices of non-landed private residential properties in the Core Central Region (CCR) increased by 1.0%, compared to the 0.7% increase in the previous quarter. Prices in the Rest of Central Region (RCR) increased by 4.0%, compared to the 3.1% increase in the previous quarter. Prices in the Outside Central Region (OCR) increased by 1.9%, compared to the 2.6% decrease in the previous quarter.
The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-March. The statistics will be updated on 28 April 2023 when URA releases its full set of real estate statistics for the first quarter of 2023. The public is advised to interpret the flash estimates with caution as past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual changes could be significant when the change is small.
Here’s a table comparing the price index for non-landed private residential properties in Q4 2022 and Q1 2023 by region:
| Region | Q4 2022 | Q1 2023 | Change |
|---|---|---|---|
| CCR | 200.9 | 202.9 | +1.0% |
| RCR | 166.1 | 172.5 | +4.0% |
| OCR | 159.3 | 162.3 | +1.9% |
