Private residential prices to soar 5% in 2023
Financing costs and cooling measures may have dampened demand.
The cost of private homes is expected to rise by 5% next year on the back of financing costs, cooling measures, and uncertain macroeconomic conditions, said Cushman & Wakefield.
It said the total residential volumes in 2023 could be subdued below 20,000 units whilst rental growth will ease due to the influx of new supply.
But the slow private residential demand will be offset by “a robust rental market, low levels of unsold inventory and rising property replacement costs.”
The private residential rental market has outperformed “amongst all other property segments, with rents increasing by 20.8% in the first three quarters of 2022.”
“The robust growth in rents was driven by limited supply, transient leasing demand due to construction delays of new homes in 2020 and 2021, and higher expat demand,” said C&W.