What could support new home sales in 2023?

CBRE expects 7,500 to 8,000 units to be sold for the entire year.

The healthy pipeline of new launches and the reopening of borders in countries in Asia-Pacific, particularly China, will support new home sales in 2023, said real estate experts.

OrangeTee said projects like Lentor Hills Residences, Newport Residences, Tembusu Grand, and The Botany at Dairy Farm. may benefit when more wealthy investors from China return in the coming months.  

CBRE, however, said that demand for new homes remains " uncertain in the near term" given the slowing economic conditions, high mortgage rates and tightened financing conditions from September 2022’s round of cooling measures.

In addition, the higher buyer stamp duty (BSD) announced in Singapore’s 2023 Budget yesterday, could potentially undermine some homebuying appetite, especially for higher-end properties. Developers and homebuyers may take some time to reassess and recalibrate their strategies, and adopt a wait-and-see approach in the near term," CBRE commented.

Nonetheless, the expert believes new home sales will marginally increase from last year, with volumes expected to hit 7,500 to 8,5000 units for the whole year.

OrangeTee had a higher forecast range of 8,500 to 10,000 units.

Knight Frank, for its part, said, "aspirational ambitions of Singaporeans to upgrade to private property supported by steadily increasing household income and net worth will overcome the obstacles of higher costs, higher borrowing rates, and higher taxes once the economic outlook stabilises and when a greater variety of launches become available."