Private residential prices to 'trade sideways' for the next 1-2 quarters
Prices dropped for the first time in three years in 1Q23, falling 0.4% QoQ.
Following a drop in private residential prices in 1Q23, experts believe prices will stabilise in the next few quarters.
EDMUND TIE, however, said it is still "too early to call the peak of the market cycle" and is expecting prices to trade sideways for the next one to two quarters.
"A material deterioration in economic and labour market conditions, coupled with soft land bids ahead, could precipitate a correction in prices; but a sharp pricing correction is unlikely, given the macroprudential measures that have been put in place for over a decade," EDMUND TIE said.
"Price increases for the rest of this year are expected to be moderate as homebuyers are spoilt for choice amid the slew of upcoming launches," the real estate expert added.
CBRE expressed a similar sentiment, saying a "significant price correction is not expected given low unsold inventory and generally healthy household balance sheets."
PropertyGuru, for its part, said prices alongside rents will moderate further in the next two to three years, given the recent announcements in the 2H23 Government Land Sales (GLS) programme.
For 2023, Knight Frank and EDMUND TIE expect private home prices to grow by 3% to 5%, whilst CBRE predicts a 3% price growth.
On the demand side, OrangeTee believes buying activities will continue in the second half of 2023, with more projects slated for launch.
"Developers may bring forward their project launches before the lunar seventh month which may boost new home sales in the coming months. More private homes will also obtain their TOP (temporary occupation permit) which usually will lead to more homes being put up for resale after completion," OrangeTee said.
"There will still be demand for private homes in the long run as a number of Singaporeans still subscribe to the notion of downgrading as part of one’s retirement plan, while others desire to upgrade their properties," OrangeTee added.
With more launches in the pipeline, Huttons expect the market to sell around 8,000 units.