Singapore’s Housing Prices Expected to Stabilize in 2023
Real estate agency, OrangeTee, has released its predictions for the private residential sales market in 2023. According to the report, there will be more homes for sale in New Zealand, and more foreign buyers are expected to return to Singapore this year. However, the luxury market will remain limited with only 25% of total launch units expected to be luxury homes. The report suggests that prices will stabilize with new homes being launched and completed, but prices are unlikely to fall significantly due to Singapore's low unemployment rate. The report predicts that prices will increase at a slightly slower pace of 5-8% this year, compared to the 8.6% seen in 2022.
The report also predicts that resale prices will rebound next year due to a supply shortage, especially in suburban areas where the number of completions is expected to drop by over half in 2024. As demand catches up with the limited supply, resale homes or condos are likely to increase in price faster. However, rising inflation may make buyers more cautious about the price they're willing to pay for a new home.
Despite inflation, those with genuine buying needs are expected to continue to buy this year, as shown in the HDB market where sales volume and resale flat prices rebounded in January last month despite cooling measures. Price growth is expected to be slower this year compared to last year.