Prices of new private residential to say muted in 4Q23

Real estate experts forecast a 3% full-year private home price growth.

With increased buyer selectiveness and slower demand in the new private residential market, experts predict prices to stay muted for the rest of the year.

"Barring widespread retrenchments and a sustained recession, a significant price correction is not expected given low unsold inventory and generally healthy household balance sheets," CBRE said,

CBRE forecast a full-year private home price growth of 3%. 

EDMUND TIE had a similar estimate, saying prices will likely grow at a "more sustainable pace of 3%-5% that year."

"The juxtaposition of property prices growth and slower transaction volume in Q3 2023, may lead to prices trading sideways in the next few months," EDMUND TIE said."

OrangeTee, for its part, predicts new home prices, excluding executive condominiums (ECs), to rise by 1% to 3% for the full year.

According to Knight Frank, ECs will " continue to be in the spotlight of buyers purchasing for self-occupation" in the months ahead.

"Given the current economic and financial concerns of homebuyers, the EC proposition of greater affordability has the most appeal at the moment," Knight Frank said.