Rising Private Demand and Lowered Public Demand in Singapore's Property Market

Despite these challenges, the resale market is showing resilience. In the third quarter of 2024, resale volumes experienced a slight 1.5% quarter-on-quarter increase to 3,860 units. Over the first nine months of the year, activity surged with 10,351 units sold, a robust 21.8% increase from the previous year. The strong recovery is partly attributed to the housing supply boom over the past two years, with close to 30,000 private homes completed.

Shifting to the rental market, contrasting patterns are emerging. Private rental demand has soared, evidenced by a 24.4% quarterly increase in volume to 25,731 units in Q3. On the other hand, public housing rentals, such as HDB leases, have weakened, with volumes falling 4.6% to 9,118 units. For 2024, HDB leasing demand is expected to drop to 36,500-38,000 units, compared to over 39,000 units in 2023. OrangeTee notes that the year-end holiday season could further dampen public rental activity.

​Interestingly, the moderation in private rents might draw more demand away from the HDB market, creating opportunities within the private rental space. OrangeTee estimates that the number of leased private homes could reach 85,000 to 88,000 by year-end, underscoring this segment’s increasing appeal. The rental landscape, therefore, is evolving, with economic shifts and housing supply trends playing key roles in shaping the market dynamics.