New homes market sales may reach up to 10,000 units in 2023

Home supply will be between 10,000 and 12,000.

Singapore’s new homes market sales are expected to reach between 9,000 and 10,000 units in 2023 due to more supply launches seen for next year.

In a statement, Huttons said new home sales are unlikely to be affected by higher interest rate as the “drawdown on loan is on a progressive basis.”

Sales volume in 2022 is expected to not exceed 7,500 units due to the record low units launched which may be between 4,500 and 5,000.

On the other hand, for 2023, new home supply is estimated to be between 10,000 to 12,000 units across over 40 launches. Of which, 20% of the units were in the Core Central Region, 50% in the Rest of the Central Region, and 30% in the Outside Central Region.

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“The resilience of the local property market to high interest rates is a stark contrast to many cities worldwide where property prices have stumbled. It may be due to low speculative activities and ample liquidity in the market to absorb higher interest rates. The robust property market may draw more interest from overseas buyers,” according to Huttons. 

Meanwhile, the resale market may slow more to around 12,000 units due to higher interest rates. The cooling measures will also stabilise the demand for HDB upgraders.

It added that prices are not seen to soften due to the low speculative demand and as buyers are capable of meeting bigger mortgage payments from higher interest rates.