Singapore’s private residential property market is set to face a supply surge in the next few years, as indicated by the latest data from the Urban Redevelopment Authority (URA). The completion of close to 3,800 private residential units in the first quarter of 2023, marking a 60% increase from the average completion rate in 2022, has led to a rise in the vacancy rate for private residential properties to a five-quarter high of 6.0%.
The trend is expected to continue as the cumulative total of around 40,400 private residential units (including ECs) set to be completed between 2023 and 2025 will contribute to the total supply of 100,000 public and private housing units.
Real Estate Market in Q1 2023
- Record high completion of private residential units in Q1 2023, resulting in a vacancy rate of 6.0% – the highest in five quarters.
- Cumulative total of around 40,400 private residential units to be completed between 2023 and 2025.
- Rentals of private residential properties increased by 7.2% in Q1 2023.
- Developers launched 1,312 uncompleted private residential units for sale in Q1 2023, compared with the 504 units in the previous quarter.
- Developers sold 1,256 private residential units in Q1 2023, compared with the 690 units sold in the previous quarter.
- Stock of unsold units remains stable, with around 16,252 units remaining unsold as at the end of Q1 2023.
- Around 25,600 units could be made available for sale later this year or next year.
Lentor Gardens Residences
|Market Segment||Q1 2023|
|Private Housing Units Completed||3,785|
|Private Housing Units Launched for Sale||1,312|
|Private Housing Units Sold||1,256|
|Executive Condominium Units Sold||206|
|Private Housing Units in Pipeline||44,846|
|Private Housing Units Unsold||16,252|
|Private Housing Units to be completed by 2025||40,400|
In the first quarter of 2023, the private housing market in Singapore experienced a significant surge in the number of completed units, with almost 3,800 units completed, a 60% increase from the average of around 2,400 units completed per quarter in 2022. The completed projects include the Avenue South Residence, Piermont Grand, Kent Ridge Hill Residences, and Riviere. This development has brought the total supply of completed private residential units (including ECs) to around 40,400, out of the total 100,000 public and private housing units expected to be completed by 2025.
In Q1 2023, developers launched 1,312 uncompleted private residential units (excluding ECs) for sale, compared to 504 units in the previous quarter. Developers sold 1,256 private residential units (excluding ECs) in the quarter, compared to 690 units sold in the previous quarter. However, no EC units were launched for sale in the first quarter of 2023, and only 206 units were sold.
The total supply of uncompleted private residential units (excluding ECs) in the pipeline with planning approvals reduced to 44,846, compared with 46,041 units in the previous quarter. Of this number, 16,252 units remained unsold as of the end of Q1 2023, compared to 16,024 units in the previous quarter. Adding the supply of unsold units (including ECs) in the supply pipeline with planning approval and those not yet approved, approximately 25,600 units (including ECs) could be made available for sale later this year or next year.
The rental market for private residential properties experienced a 7.2% increase in Q1 2023, a marginal moderation from the 7.4% increase in the previous quarter.
Despite the significant increase in completed private residential units, the vacancy rate of private residential properties rose to a five-quarter high of 6.0%, up from 5.5% in the preceding quarter. This is likely due to the increase in the number of units completed in Q1 2023 and the marginal increase in rentals. As a result, buyers looking for private housing in Singapore can expect more choices in the coming months as more completed units become available for sale. However, property sellers may face stiff competition in the resale market, especially given the current high vacancy rates.