It is unlikely that home prices will drop in 2023 due to the current market conditions. We advise homebuyers to not play the waiting game and instead, to take action now by doing their homework and finding out the current transaction trends in the areas they are interested in.
The rising interest rates in 2022 have made home buying and upgrading a bit more challenging for many buyers. However, it is important to note that the recent interest rate hikes are a normalization of rates following a decade of low rates.
Additionally, it is not possible to time the market perfectly, so if a property fits your budget and needs, it may still be worth purchasing. It is important to consult with the right property agents who can assist with proper financial analysis and make sound decisions when navigating the property market in 2023.
While interest rates are on the rise, it is not expected to cause a significant drop in home prices in 2023. Therefore, buyers should not wait and instead, take action now to navigate the property market.
The factors that will hold up home prices in 2023 include limited stock of unsold new homes in the market, limited supply in the resale market due to high replacement cost, rental market booming, and government policies such as the additional buyer’s stamp duty and the 15-month wait-out period.
Despite potential global headwinds and economic downturns, there are still genuine buyers in the market who will prop up housing demand. The job market is tight and many Singapore households still have strong purchasing power. Therefore, while home prices may not fall, they may see a slower pace of increase in 2023.
For those with a tighter housing budget, the resale condo market may be a good option as resale prices have risen at a slower pace compared to new launch prices in the past year.
The average price gap between non-landed resale properties and new launches is currently significant at $1,074 psf in Q4 2022. However, it’s important to consider that resale prices tend to rise more slowly or even stagnate after a while, and that older properties may have higher maintenance costs and a declining lease balance to think about. It’s also important to conduct proper research and due diligence before making any real estate decision.
2023 is expected to see more new condo projects being launched, providing more options for home buyers. Prices are expected to maintain a slight uptrend, with the Rest of Central Region and Core Central Region seeing higher price increases compared to Outside Central Region.
New launches will remain popular due to the benefits of buying a brand-new property with modern facilities and potential for capital growth. Regardless of budget, there will be buying opportunities in both the private property and HDB resale market.
In summary, buying a property is a long-term commitment that requires thorough planning and financial assessment. The current market conditions may present challenges such as a possible global recession, geopolitical tension, and high inflation, which can affect job security, cost of living, and market sentiment.
It is important for buyers to consider their financial holding power and to have a clear understanding of their expenses and future plans, including backup funds and resale prospects. Do speak with us if you need help to navigate the property investment journey and to assess your financial circumstances.
Wondering if it’s the right time to buy, sell, or wait it out?
These decisions can be tough, and there isn’t a one-size-fits-all answer.
But don’t worry, that’s where we come in!
At Let’s Talk Property, we are here to provide clarity to you and guide you step-by-step in your real estate journey!
Whether you’re a first-time buyer or a seasoned investor, we hope to partner with you to create a clear plan that’s tailored to your unique needs and provide objective guidance to help you make the best real estate decision.
So, if you’re looking to buy, sell, or just want to chat about your real estate options, we’re here for you!
With our extensive on-the-ground experience, you can trust us to provide a top-notch real estate experience that’s both informative and stress-free.
Do contact us for a sharing session!
Speak With UsBest Regards,
Let’s Talk Property
Dillon @ 9389 1992
P.S. HDB Owners, with so much UNCERTAINTY, Should you BUY, SELL or WAIT?
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