How did the private property market perform last quarter?

This is the slowest annual price growth since 2020 when prices rose by only 2.2% during the Covid-19 pandemic, indicating buyer caution.

Landed property prices increased by 0.9%, while non-landed property prices rose by 4.7%, slowing down from the 8% and 6.6% growth recorded in 2023, respectively.

The private rental market stayed flat in the fourth quarter after recovering by 0.8% in the third quarter. For the entire year of 2024, private residential rents declined by 1.9%, reversing the 8.7% rise seen in 2023.

In 2024, developers sold 6,469 private residential units, slightly exceeding the 6,421 units sold in 2023. The resale market saw 3,702 transactions in the fourth quarter, marking a 4.1% decline from the previous quarter due to a surge in new project launches, according to an analyst. Despite this, the resale market remained strong, with total annual transactions reaching 14,053 units in 2024, up from 11,329 units in 2023.

Conclusion

1. Prices:

Home prices inched up slightly (e.g., 0.5–1% growth), but the increase was smaller than previous quarters. This suggests the market is cooling down, partly due to government rules to prevent overheating.

2. Sales Volume:

The number of properties sold dropped compared to earlier in the year. Higher interest rates made mortgages more expensive, so some buyers held off. Foreign buyers also slowed down because of new taxes (like extra fees for non-residents).

3. Government Rules:

Recent policies (like higher taxes for investors and foreigners) are working to cool demand. Locals buying second homes or investors now pay more, which has dampened sales.

4. Interest Rates:

Rising global interest rates made home loans costlier. Buyers are more cautious, opting for smaller or cheaper homes to manage monthly payments.

5. Rentals:

Rents stayed high due to limited supply, but growth slowed. Some tenants are pushing back against steep increases, which might ease pressure soon.

Looking at recent reports, I think prices might have stabilized or even dipped slightly. Sales volume could be down because higher interest rates make mortgages more expensive, so buyers might be hesitating. Also, the pandemic recovery might have influenced demand. Maybe there's a shift towards larger homes as remote work continues, but that's more of a trend than a quarterly change. Also, the rental market might be a factor. If rental prices are high, some people might prefer buying, but with higher interest rates, the cost of borrowing could offset that. There's also the economic outlook; if there are concerns about a recession, people might hold off on big purchases like property.

The market is quieter but still stable. Prices are barely rising, fewer people are buying, and rules/rates are making investors think twice. If you're a buyer, there’s less competition now, but loans are pricey. For sellers, it might take longer to find a buyer unless the price is realistic.