On March 20th, Minister Indranee Rajah delivered a speech at ERA’s Asia Pacific Business Conference, lauding the dedication of award recipients and stressing service excellence. She expressed gratitude to ERA for its significant contribution to Singapore’s real estate sector, highlighting its expanding international presence and commitment to high service standards. The event marked a celebratory culmination of ERA’s achievements over the past year.
With that Minister Indranee also addressed various facets, from market updates to government measures outlined in Budget 2024.
ERA’s commitment and achievements
Minister Indranee lauded ERA for surpassing boundaries and establishing a formidable international footprint, a testament to the agency’s visionary leadership and the dedication of its members.
Acknowledging ERA’s motto, “Trusted by Generations,” she emphasised the significance of this ethos, recognising the enduring trust earned by exemplary Real Estate Salespersons (RESs) and industry veterans.
Forward Singapore exercise and housing aspirations
Over the past two years, Singapore embarked on the Forward Singapore exercise, aimed at rejuvenating our social compact and shaping our collective future as a unified nation. With over 200,000 Singaporeans actively participating, this initiative provided invaluable insights into their aspirations, dreams, and goals.
Through the exercise, Singaporeans expressed a resounding desire for homeownership, underscoring its significance as a key aspiration.
Minister Indranee reiterated the government’s commitment to supporting these aspirations, underscoring the pivotal role of real estate professionals in bridging clients with the property market.
Market updates and trends
The COVID-19 pandemic significantly impacted the housing market, causing supply disruptions and surging demand. Despite them, the housing market showed resilience, with continued demand from homebuyers. However, the imbalance between demand and supply exacerbated existing housing affordability issues, particularly in the public housing sector.
The government, in return, implemented initiatives to address housing imbalances, increased supply, and stabilised the market:
Public housing supply:
The Housing and Development Board (HDB) committed to launching 100,000 new flats by 2025, aiming to address housing demand. As of February 2024, over 67,000 flats had been launched, with plans for another 19,600 flats later this year. Additionally, HDB completed 21,400 flats across 23 projects in 2023, marking the highest number of completions in the last six years.
Private housing supply:
In 2023, the government ramped up private housing supply, with 9,250 units launched under the Government Land Sales Programme (GLS), marking the highest annual supply in the last ten years. Furthermore, land supply for 5,450 private homes was made available on the Confirmed List for the first half of 2023, representing the highest supply since 2013.
Rather take a look at the collective sales for the year? Check out our article here: List of En bloc (Collective sale) in Singapore 2024
Price and rental trends:
The imbalance between housing demand and supply led to upward pressure on housing prices and rents in both public and private sectors. However, following cooling measures, HDB resale prices only rose by 4.9% in 2023, price growth in the private residential market moderated to 6.8%. Additionally, rental demand eased as more units were completed, leading to stabilisation in rental prices, with 0.4% decrease in public housing rents and a 2.1% decline in private housing rents in 2023.
BTO application rates:
BTO application rates decreased from a peak of 5.8 applications per flat in 2020 to 2.9 applications per flat in 2020, indicating a gradual alignment between housing supply and demand.
Transaction volume:
Transaction volume in the private property market declined by 13% in 2022, reaching its lowest level since 2016, reflecting market stabilisation efforts.
Initiatives to support housing aspirations
Various housing initiatives and grants were also introduced to support homeownership aspirations, including the Parenthood Provisional Housing Scheme (PPHS) and resale flat grants.
Adding to this, measures to address demand-supply imbalances, such as launching new flats with shorter waiting times, were implemented as well.
Highlights of budget 2024 measures
Various support measures introduced in Budget 2024 include enhancements to the Assurance Package and mid-career reskilling initiatives. Specific measures such as CDC Vouchers, Cost-of-Living Special Payment, and SkillsFuture Level Up Programme aim to support targeted groups.
Marcus Chu, CEO of ERA Singapore also highlighted recent announcements aiming to refine changes implemented earlier, including offering the Parenthood Provisional Housing Scheme (PPHS) voucher for young parents awaiting their BTO flats and allowing retirees ABSD concessions to facilitate downsizing.
“The higher annual value bands for owner-occupier homes will reduce property tax for homeowners in 2025”, he said.
Read more: Should you refinance your home loan in post-Budget 2024?
Efforts to counter scams
Between July 2023 and January 2024, Singapore witnessed a surge in impersonation scams targeting property agents and listings, with a staggering 389 reported cases of individuals falling victim to such schemes. These incidents have led to cumulative losses surpassing S$2.4 million.
Minister Indranee emphasised the paramount importance of fostering a vigilant and discerning public as the most effective defence against scams.
She commended ERA for its proactive role in this endeavour, highlighting its active dissemination of educational materials and promotion of CEA’s anti-scam resources through various social media platforms.
This concerted effort by ERA significantly contributes to safeguarding consumers against fraudulent schemes in the real estate sector.
Industry transformation and digitalisation
Emphasising the importance of digitalisation and technology in the real estate sector, ERA is committed to digital training for real estate salespersons and initiatives to improve property listings accuracy.
According to Mr. Chu, the company aims to empower salespersons with tech initiatives to help Singaporeans achieve their housing aspirations. Digital training programmes accommodate diverse learning capabilities, ensuring all RESs receive training in at least one digital marketing skill.
In fact, ERA’s very own SALES+ app significantly enhances ERA salespersons’ efficiency, aligning with initiatives outlined in the Real Estate Industry Transformation Map 2025, including the development of i-Submission and a centralised listing platform.
Wrapping up
In conclusion, Minister Indranee’s address underscored the multifaceted efforts and collaborations shaping Singapore’s real estate landscape, emphasising the pivotal role of stakeholders like ERA in driving industry transformation and ensuring sustainable growth.
The post Minister Indranee on ERA’s impact on Singapore’s real estate market, current housing trends, & more appeared first on .
