In the second quarter of 2024, the overall residential property price index reached 96.6 units. This represents a quarterly increase of 1.6%, which is in line with the growth rate recorded in the first quarter. In annual terms, the increase was 8%, compared to 7.8% in the previous quarter.
Home prices in Q2 2024 showed a higher quarterly growth of 2% compared to 0.8% in Q1. The annual growth in this segment was 6.2% compared to 4.7% in the previous quarter.
For apartments, quarterly growth slowed to 1.4% (from 3.4% in Q1). However, annual apartment price growth was 12%, twice as high as house price growth. This is due to strong demand for one-, two- and three-bedroom apartments.
According to the Department of Lands and Surveys ( DLS ), the total number of property sales contracts fell year-on-year in the second quarter. The decline was due to a decline in demand from overseas buyers. However, the decline is not yet reflected in the price index, as demand has a lag effect on the figures.
An analysis of data on issued building permits shows an increase in the supply of new properties. This growth is likely due to a decrease in the prices of building materials, which stimulates construction activity.
