How Budget 2024 Impacts Singapore Homeowners: Exciting Property Tax Updates and ABSD Benefits
TLDR The 2024 Budget introduces changes to property tax bands, aiming to ensure fair taxation based on Annual Value (AV)...
Read More
TLDR
The author delves into various opinions on the Singapore property market for the year 2023. Experts have differing views on transaction volumes and price movements, with some anticipating stability while others predict fluctuations. Factors such as interest rates, new launches, and market trends are discussed. The post also offers insights for first-time homebuyers in Singapore, drawing from real-life experiences and providing essential tips for navigating the real estate landscape.
As someone on-the-ground in the real estate industry, it’s inevitable to think about the current state and the future of the property market. I shared that not too long ago, I believed that property prices in Singapore would drop due to the high interest rate environment. However, I eventually realized that the theory of a price crash might not happen.
When I asked my friends and clients to share their views, they had different opinions for the short-term, but over the longer-term, they believe that the property prices in Singapore will continue to rise higher and higher into the future. This sentiment is shared by many, as Singapore has strong fundamentals, making it one of the top countries to live in globally.
According to a research report by DBS in 2018, the average price of a new launch project in Singapore can reach as high as SGD 2,100 per square foot by 2030. This means that a 1,000 square foot new launch project property may cost up to SGD 2.9 million dollars by the year 2030. It’s true that prices of new launch projects in Tanah Merah, for example, have already exceeded SGD 2,000 per square foot, making SGD 2,900 per square foot by the year 2030 a real possibility.
While 2030 is still seven years away, what about 2023? I shared my theory of how 2023 will pan out in a previous article, but it’s just an opinion of one. So, during a Chinese New Year gathering at my place, I came up with the idea of hearing the opinions of my top investor friends.
After requesting their opinions, I invited some of them to talk about the property market for the year 2023 in my home. I found that there are two different schools of thought among my peers. One side believes that moving forward in the year 2023, the market would be very bullish, while the other side thinks that the property market is going to be slightly more muted. The following is a compilation of all of their responses.
One of my friends, thinks that there will be more transactions due to more new launches in the market in 2023. He also believes that there will be a record from all the projects that they have seen because all the land bit prices are going out, among other factors.
Another friend, feels that the market should be quite buoyant in 2023. She thinks that prices will be higher than what buyers have been paying before but will be more worth it to buy now because prices will continue to rise in the future due to a shortage of land sales after the pandemic. She also mentioned that buyers would need bigger spaces, so the bigger units will move, making it more advisable to consider getting bigger units than smaller ones.
Another friend, shared his opinion on the market’s future performance, saying that he expects prices to see some volatility in 2023. He believes that prices will remain strong in the next two to three years, as volumes are starting to return for purchasers. He also mentioned that with more supplies coming in, there will be more choices for consumers and buyers, which will hopefully ease prices.
Another friend, who has been in the industry for 11 years, predicts that the volume will likely be similar to what we saw in 2022, with the CCR, RCR, and OCR markets experiencing upward movements. He believes that with foreigners coming in and new launches, we will see more transactions and price movements in 2023.
Another friend, feels that prices will stabilize in 2023 due to pent-up demand from last year’s lack of supply in the new launch market. He predicts that volume will increase due to high take-up demand in new launches. He hopes that buyers will take advantage of the 15,000 new launches coming out this year and increase transaction volume.
Another friend, predicts that interest rates will stabilize by the end of the year, and the volume will come back again as the developer stocks are at an all-time low. He believes that as developers put their new homes on the market, volume will increase. People will become more certain of the outlook for the years to come and come back into the market. Currently, people are staying on the sidelines, waiting to see what happens with the economy and jobs.
Another friend, predicts that private property transaction volume will remain healthy, but the volume for Singapore HDBs will decrease due to recent measures. He believes that prices will slightly decrease due to buyers being more cautious with the higher interest rate.
Another friend, in her opinion, thinks that transaction volume will slow down due to higher interest rates and cooling measures. She believes that transaction volume will increase in the later part of the year, especially with the new exciting launches. She predicts that prices will stabilize, which is good news, and they will increase at a more steady pace due to the cooling measures implemented last year.
Lastly, another friend, predicts that transaction volume will remain similar to that in 2022. Although there will be new launches coming up, the general transaction volume in 2023 will stay the same. He predicts that prices will increase, but the rate of increment will not be as high as in 2022.
In conclusion, there is a mix of opinions on the Singapore property market in 2023. Some experts believe that transaction volume and prices will remain strong, while others predict a slowdown due to higher interest rates and cooling measures. However, with exciting new launches coming up, many are optimistic that transaction volumes will increase later in the year. Only time will tell what the property market will hold in 2023.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
Single, Over 35, and Searching for a Home? Here’s Your Guide to Choosing Between an HDB and a Condo!
At the age of 35, a single Singaporean starts a significant year, highlighted by the long-awaited chance to buy their...
Read More
Travel Without Worry: The 5 Best Telco Companies For International Roaming In Singapore
Travel Without Worry: The 5 Best Telco Companies For International Roaming In Singapore When it comes to choosing a mobile...
Read More
Singapore Private Residential Market Outlook 2023
TLDR The Singapore residential property market has shown resilience in 2022, with price growth in both private housing and HDB...
Read More
Discover Affordable Executive Condos in 2024 Starting at $560,000
TLDR The Executive Condos (ECs) offer affordable options compared to private properties in Singapore. Despite price variations, most ECs remain...
Read More
Is the Singapore Property Market Set for a Dip in 2024?
TLDR The Singapore property market is experiencing shifts with Morgan Stanley adjusting its outlook on major developers. A forecast predicts...
Read More
The Sneaky Role of Property Appraisals in Shaping Singapore’s Home Prices
TLDR When it comes to the real estate market in Singapore, understanding property valuations and the impact on mortgage loans...
Read More
Singapore’s Urban Landscape Transformation: 5 Key Things You Need to Know
Singapore's urban landscape has undergone significant changes over the years, with the city constantly evolving to create a sustainable and...
Read More
Top 5 : Exploring the Streets of Singapore – A Journey Beyond Just Shopping!
Singapore, a vibrant city-state known for its diverse culture and rich history, offers a plethora of unique experiences that go...
Read More
The Top 5 Renovation Tips For Increasing The Value Of Your Singapore Property Investment
When it comes to increasing the value of your Singapore property investment, strategic renovations can make a significant difference. Here...
Read More
Discover 5 Reasons Executive Condominiums Could Prove To Be A Smart Investment Despite Growing Inflation
TLDR An overview of the article discussing the benefits of Executive Condominiums (ECs) over private condos in the current real...
Read More
Top 5 Best Scenic Drives in Singapore
Singapore, a bustling city-state known for its modern architecture and vibrant culture, also offers some of the most picturesque driving...
Read More
A Executive Summary Guide to the Singapore Real Estate Market 2023 and Beyond …
TLDR The Singapore real estate market is vibrant, driven by a strong economy, stable business climate, and attractive investment opportunities....
Read More
6 Secrets Foreign Investors Are Rarely Told About Singapore’s Real Estate Market
TLDR The Singapore property market presents unique characteristics that foreign buyers should consider. From the high rate of homeownership to...
Read More
5 Tips : Riding the Wave: How to Profit from the Upcoming Boom in Singapore’s Property Market
Singapore's property market has always been a hot topic among investors and homebuyers alike. With million-dollar HDBs being sold and...
Read More
Singapore’s Housing Phenomenon: A Success Tale Calling for Tweaks – Insights from the Experts
TLDR Singapore's housing system has been praised for its effectiveness in meeting citizens' homeownership desires. The public housing program by...
Read More
5 Top Primary Schools in Singapore Popular with Expat Chinese Community
5 Top Primary Schools in Singapore Popular with Expat Chinese Community When it comes to education, Singapore is a top...
Read More
Top 5 Romantic Date Spots in Singapore
Singapore, known for its stunning skyline and diverse culture, is a melting pot of romantic opportunities just waiting to be...
Read More
Decoding the HDB Classification: The New Prime, Plus & Standard – What It Means for Singaporeans
TLDR The National Day Rally 2023 introduced a new classification for HDB flats, replacing the old 'mature versus non-mature estates'...
Read More
Top 5 Factors to Consider When Choosing a Property in Singapore
The top 5 factors to consider when choosing a property in Singapore. Whether you're a seasoned investor or a first-time...
Read More
