What lies ahead for the property market in 2023? PropertyGuru cites declining sales

Economic conditions could worsen and financially constrain sellers.

Whilst prices are stabilising, PropertyGuru raised alarm on the possibility of price correction in 2023, which could worsen economic conditions and financially constrain home sellers in the property market.

More first-time home buyers may also move to the rental market due to the affordability, PropertyGuru added.

A PropertyGuru 2022 study showed about 66% of the respondents chose to rent instead of buy homes due to a lack of savings.

“Still, renting is seen as a temporary means to meet short- to medium-term housing needs; the end goal for many Singaporeans is still homeownership,” PropertyGuru said.

For the mid-to-long term, there is still continued appeal to foreign investors and buyers. 

“This is likely to generate more wealth and attract fresh talent, bringing new demand to the housing market,” it said.

Lagged effect 

The government may have increased the supply of homes but PropertyGuru sees a lagged effect. This means it will not be visible in the immediate term.

In the past, the government vowed to provide 100,000 flats from 2021 to 2025.

In the second half of the year, the government land sales units for the second half of 2022 grew by 26%.