Flip or Flop in the 2023 property market?

The Singapore economy is projected to expand by around 3.5% in 2022 and 0.5% to 2.5% in 2023, the Trade and Industry Ministry said in November. Barring a worsening of economic conditions, PropNex remains optimistic about the Singapore residential property market in 2023.

Although interest rates are likely to remain elevated, the pace of increase could slow and potentially plateau in the second half of 2023. Singapore’s status as a global business and wealth management hub as well as its reputation as a safe haven have kept the country on the radar of global investors. The country will remain attractive to investors and the real estate sector will be a beneficiary of such capital inflows. In particular, residential projects in the city and city fringe would appeal to foreign buyers.

Sales Projection 2023

Private Residential Price Index and Price Projections

HDB Resale Market

In 2023, HDB resale prices may grow at a slower pace following two years of robust performance. Together with the cooling measures and some price resistance setting in, this may slow the pace of the overall price increase. PropNex forecasts that HDB resale prices may grow by 6 to 8% in 2023.

With fewer MOP flats entering the market in 2023 compared to 2022, the available stock for resale could remain tight. PropNex expects the HDB resale volume to come in at around 27,000 to 28,000 flats in 2023. Demand will continue to be driven by those with more pressing housing need as well as families who do not wish to wait 3-5 years to get a BTO flat.