Private residential price growth to be muted in 2023
Experts forecast a 3%-5% growth in prices for the year.
Real estate experts believe that private residential price growth has already peaked in 1H23 and will likely flatten out in the next few quarters due to the April cooling measures imposed by the government.
"Barring widespread retrenchments and a sustained recession, a significant price correction is not expected given low unsold inventory and generally healthy household balance sheets," CBRE said.
In 2Q23, private residential prices fell for the first time after 12 consecutive quarters of growth, dropping 0.2% QoQ.
"Barring an unexpected deterioration in economic conditions, we do not anticipate a significant downturn in prices," Cushman & Wakefield said.
"With higher levels of new completions by the end of 2023, cooling measures overhang and tempered economic growth, 2023 is expected to see moderate overall prices growth of 2%-5%," C&W added.
Edmund Tie and Knight Frank forecast a 3%-5% growth in prices.
"With the possibility of a technical recession looming in the minds of homebuyers, private home prices are expected to stabilise with increases being more subdued.," Knight Frank said.
"While potential investors and foreign buyers might adopt a wait-and-see attitude, new units will likely be more sought after than resale units, selling at prices that reflect the land costs committed 12-18 months ago, as well as heightened construction cost," Knight Frank added.