Prices of private homes to rise modestly in 2024: expert

OrangeTee said there will be a moderate rise in new home sales next year as well.

Real estate expert, OrangeTee expects private home prices to rise modestly in 2024, notwithstanding the existing property curbs and cautious macroeconomic outlook.

“Lower borrowing costs may be on the cards if central banks shift their focus to rate cuts. Furthermore, if inflation cools, household balance sheets and affordability will improve,” OrangeTee said.

Next year, OrangeTee also expects an increase in new private property launches, with approximately half of these launched units will be in suburban areas. 

The suburban areas, however, will experience the biggest drop in the supply of resale homes.

According to OrangeTee, the number of completions or private homes obtaining Temporary Occupation Permit (TOP) in the Outside of Central Region (OCR) will decrease sharply from over 10,000 units in 2023 to around 1,800 units in 2024.

“As a result, sellers will continue to have the upper hand in the secondary market due to lower inventory levels. We expect resale prices to increase, especially for bigger units in the suburbs,” OrangeTee said.