Property prices may trade sideways due to high-interest costs

Edmund Tie anticipates prices to rise by 3-5% in 2023.

Property expert, Edmund Tie, lowered its full-year forecast for primary sales to 6,500-7,500 units due to a lower take-up rate and higher financing costs. 

Overall, it sees a resilient property market due to organic demand growth and a tight labor market.

Huttons, meanwhile, finds that the lunar seventh month, from August 16 to September 14, finds a surge in property launches.

It forecasts that over 5,000 units will be sold by developers in the first eight months of 2023. With 12 new launches expected in September and around 8,000 units sold by year-end, surpassing the previous year’s 7,099 units.

Quoting The Ministry for Trade and Industry, the government anticipates stronger growth in H2 2023, boosting sentiments. But cautious buyers and upcoming projects influence the market.

The latest comments stemmed from government data showing new private home sales (exclude ECs) grew by fivefold to 1,412 units in July 2023 from the 278 units in June, a stark reversal from June’s 73% mom decline. 

The sales tally in July is the highest in 20 months (i.e. since November 2021), driven by four new projects launches in the month - Grand Dunman (549 units) and Pinetree Hill (150 units) in the RCR, and Lentor Hills Residences (333 units) and The Myst (127 units) in the OCR - that recorded respectable sales.