Private home sales triple in Q4 2024 as rates decline

The Rest of Central Region (RCR) led the growth, with sales rising from 391 units in Q3 to 1,859 units in Q4. 

New sales in the private residential market tripled QoQ and YoY in Q4 2024, driven by an increase in launched units and declining interest rates, Savills reported.

The Rest of Central Region (RCR) led the growth, with sales rising from 391 units in Q3 to 1,859 units in Q4. The Core Central Region (CCR) rebounded after six consecutive quarters of decline, doubling sales from 54 units to 137 units.

In the Outside of Central Region (OCR), sales nearly doubled, increasing from 715 units to 1,424 units. For the entire year 2024, the OCR accounted for 52.2% of total new sales, followed by RCR at 42.0% and CCR at 5.8%.

On the secondary sales front, transaction volume declined 4.7% QoQ in Q4 2024, reversing gains from the previous two quarters. Despite this, secondary sales were still 23.8% higher YoY, marking a recovery after two consecutive years of decline.

Amongst the market segments, only the RCR recorded a QoQ increase of 1.9% in secondary sales. In contrast, CCR and OCR experienced quarterly declines of 3.3% and 8.8%, respectively.

George Tan, Managing Director at Savills Singapore, highlighted improved buyer sentiment among Singapore citizens and permanent residents (PRs), particularly for non-landed homes. He expects continued optimism in 2025, driven by compelling new launches and upgrading opportunities.

Alan Cheong, Executive Director at Savills Singapore, noted that demand in 2025 will likely come from late baby boomers, early Gen-X groups, and HDB upgraders.

The narrowing price gap between HDB resale flats (up 9.7% YoY) and private residential properties (up 3.9% YoY) is expected to fuel upgrading activity.

Cheong further anticipates that private property prices could rise by 7% YoY in 2025. However, if this sharp increase occurs, cooling measures might be introduced, potentially leading to a modest 1% price correction by year-end.