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Private residential prices in Singapore to hike moderately in 2023

Author : Pankaj Singh | Published Date : 2022-12-30 

Private residential prices in Singapore to hike moderately in 2023

Private residential prices in Singapore are reportedly expected to rise at a moderate pace in 2023, with the upside constrained by higher cost of borrowing, sluggish growth in resale HDB prices, and slower economic expansion.

The private residential sector will probably experience challenges in 2023, despite a strong rental market and a small supply of unsold new apartments. This is mainly ascribing to the major concern of housing affordability for buyers dealing with quickly rising interest rates, spiraling living expenses, an unclear economic outlook, and the most recent property curbs.

While some customers would postpone their purchases, poor inventory, high land, and building expenses might make it difficult for developers to lower the price of the new launches.

Analysts estimate a decline in private home pricing between 1% to 5% in 2023 from an estimated 9% for the entire year 2022.

According to Catherine He, Head and Director of research at Colliers Singapore, private residential prices would expand more slowly in the second half of 2023 and may even experience a little pullback.

Apparently, developers delayed new launches in 2022 as a result of two rounds of cooling measures, which were implemented in December 2021 and September 2022.

According to Tricia Song, head of research for Southeast Asia at CBRE, there were also considerably fewer units ready for debut in 2022 due to Covid-19 and the lack of collective sales over the previous three years.

In the suburbs, there are currently over 9,000 completed units, up from an anticipated 2,336 units in 2022, in developments like Parc Clematis, Treasure at Tampines, and Piermont Grand. While 2,478 units will be in the core center, approximately 6,600 completed apartments are on the city's outskirts.

Song stated that the average private residential rent has increased 20.8% year over year as of Q3 of 2022 and could keep rising in 2023 as landlords try to pass along growing mortgage and property tax costs to tenants.

Source credit: https://www.straitstimes.com/business/private-residential-price-growth-to-ease-in-2023-on-higher-interest-rates-slower-economic-growth

About Author

Pankaj Singh . .

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

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