When the supply of private homes is plentiful, so are the options for buyers. In the first nine months of 2023, a projected 14,000 private residential units (excluding Executive Condominiums) received their Temporary Occupation Permit (TOP), which legally certifies that they are move-in-ready.
Moreover, with a further estimated 9,800 odd units expected to attain their TOP this year, 2024 is setting up for a big boost in private housing supply in the coming months.
That said, the burning question is: With the increased supply, how will the market for resale private properties react? And what does all this mean for buyers?
Naturally, this uptick in supply is good news as it will likely translate into more options being available for parties who are interested in entering the private home market.
As it stands, the majority of the 14,000 private homes that received their TOP in the first nine months of 2023 are located in the Rest of Central Region (RCR) and Outside of Central Region (OCR) areas of Singapore, which translates into greater opportunities for buyers looking for suitable housing in these regions.
From a market perspective, the increased supply of resale private homes could also lead to a corresponding upswing in transaction volumes. Including sub-sales, the number of resale private properties sold in 2024 could possibly be in the range of 13,000 to 14,000 units, with resale prices rising in tandem by approximately 4% - 6% year on year.
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