Expect slight decline in residential price index in H2 23: RHB

This is due to increased competition and supply as well as slow economic growth.

Singapore’s residential price index went up 3.2% quarter-on-quarter in the first quarter of 2023 but RHB sees a slight decline in the second half of 2023 because of slowing economic growth, rising interest rates, and increased competition.

It also noted that the resale market is slowing down because of growing divergence in pricing expectations between buyers and sellers, and full-year resale volumes are expected to be 5-20% lower than in 2021. 

The authorities are also monitoring the market closely, which means drastic cooling measures are unlikely, said RHB.

Overall, the real estate market has a neutral rating whilst City Developments Limited has a “buy” rating.