It is likely that there will be pent-up demand for new project launches in the first quarter of 2023, as many home buyers who had been waiting on the sidelines to purchase a property will be eager to take advantage of the new options that will become available.
Chart 1: Unsold inventory of new private homes remains low as at Q3 2022
Source: PropNex Research, URA
The availability of more units in the market will also provide a greater selection for buyers, as the current unsold stock has been dwindling. Developers are expected to remain sensitive in their pricing strategy due to the recent cooling measures and global headwinds, but prices are expected to maintain a slight uptrend in 2023.
This pent-up demand in the OCR is expected to be released in Q1 2023, as developers are expected to launch several new projects in the suburban areas.
Table 1: Estimated number of new private homes (incl. ECs) to be launched in 2023
Source: PropNex Research, PropNex International
These new launches are expected to provide a greater selection of units for home buyers, who have been facing limited options due to the low unsold stock. Additionally, the prices of these new launches are expected to be more attractive as developers will be looking to move their unsold inventory.
However, it is important to note that the overall market sentiment will also play a role in the demand for these new launches. Factors such as the state of the economy, interest rates, and government cooling measures could impact the level of demand for these new projects. Despite this, it is expected that the pent-up demand in the OCR will drive sales for these new launches in Q1 2023.
It is also worth noting that buyers should also consider the long-term prospects of the property they are interested in, such as the location, amenities, and resale value. Buyers should also assess their own financial situation and plan accordingly to ensure that they are able to weather any market downturns in the future.
Table 2: Potential new launches* and estimated number of units in Q1 2023
Source: PropNex Research, PropNex International
(*Excludes projects with fewer than 100 units within the development)
There are many new property launches planned for Q1 2023, with a variety of options available in different regions. In the Outside Central Region (OCR), buyers can explore options at Sceneca Residence in Tanah Merah, Lentor Hills Residences in the new Lentor private housing enclave, as well as The Botany @ Dairy Farm, near the Bukit Timah Nature Reserve.
Meanwhile, in the Rest of Central Region (RCR), a large project called The Reserve Residence in Jalan Anak Bukit is expected to hit the market, offering an estimated 740 new homes. This project is seen as a key catalyst to drive the rejuvenation of the Beauty World area.
In the Core Central Region (CCR), two redevelopment projects TMW Maxwell and 8 Shenton Way could be launched, which may appeal to owner-occupiers who wish to live in the city centre, as well as property investors – both local and foreigners.
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