Persistently low transaction volume continues

• The High-end Apartment segment recorded 167 transactions in Q2 2024, mostly from Zeit River Thu Thiem (GS E&C). The balance came from inventory carried forward from the previous quarter. Developers offered incentives to stimulate housing demand.
• The RBL market continued to see limited transactions, with 42 units sold. This was due to the dominance of high-priced stock and the cautious mentality of buyers towards assets with less liquidity compared to apartments amidst economic uncertainty.

Developers adopt “wait-and-see” strategies

• High-end Apartment supply was limited, with 100 units from Zeit River Thu Thiem signing SPAs. However, the soft launch of nearly 900 units from Eaton Park (Gamuda) garnered strong interest, with a nearly 90% booking rate, signalling positive demand.
• In Q2 2024, the absence of new launches in the RBL market depleted primary stock to around 300 units. Similar to the Apartment market, the RBL market seems to be more vibrant, with booking activities seen from The Meadow (Gamuda) and L’arcade (PMH).

Selling price moves resiliently

• The High-end Apartment primary market saw a 4.2% q-o-q and 3.6% y-o-y decrease to USD 4,998 per sqm after the removal of sold-out high-priced projects. Capital values remained stable, up 1.8% q-o-q, reaching USD 3,565 per sqm amid limited supply.
• The RBL primary prices recorded minimal fluctuation of 0.5% q-o-q, staying at USD 4,862 sqm. The capital value growth was humble at 1.2% q-o-q and 5.5% y-o-y as some properties had to lower their expected prices to enhance liquidity.

Outlook: Market sentiment recovers slowly; a more optimistic outlook is anticipated in H2 2024

• In H2 2024, the High-end Apartment and RBL markets will welcome around 3,800 and 800 new units, respectively. Demand will recover gradually as supply shifts to lower prices, supported by lower interest rate fluctuations and a stabilising economy.
• The second half of 2024 is expected to remain stable. Developers and buyers may adopt a cautious “wait-and-see” approach, while price adjustments depend on project launches and short-term economic movement.