PropertyForSale analyst predicts resale HDB and private property prices to moderate in 2023 amid a strong supply of new homes and macroeconomic risk.

In 2023, there will be more than 20,000 landed, non-landed, and executive condominiums to be completed. It could help to stabilise Singapore property prices as buyers have more choices.

HDB will launch more than 8,000 BTO flats for sale in first half of 2023. Some of these BTO flats will have shorter waiting time and draw buyers away from the resale HDB market.

Macroeconomic risk

Macroeconomics takes a high-level look at the overall behavior, performance and structure of an economy. It focus on activities including monetary policy changes, political or civil unrest, population migration and shifts in tax regimes.

The three major factors of macroeconomic are national output, unemployment, and inflation which has a varying degrees of influence on your real estate portfolio.

Singapore economic growth is expected to slow to moderate further with sharp slowdowns expected in the United States and Europe.

For 2023, semiconductor manufacturing is expected to be hit by a global fall in demand, as a result the manufacturers will cut back on capital spending, adversely affecting the machinery and systems segment of precision engineering.

It will depress Singapore’s manufacturing sector’s most active segments of electronics and chemicals.

Trade agency Enterprise Singapore predicted trade growth of negative 2 per cent to 0 per cent for 2023.

Singapore may avoid a full-year recession in 2023 but there is a real risk of a technical recession – two consecutive quarters of negative growth – in the first half.

Enterprise SG said non-oil domestic exports (NODX) will shrink by 2 per cent in 2023 which pales in comparison to 6 per cent NODX growth in 2022.

NODX fell by 5.6 per cent in October 2022, the first decline in 22 months.

High interest rate for housing loans

The persistent rising interest rates could dampen the interest of home buyers.

Although HDB loans are pegged to 2.6% fixed rate, the banks and financial institutions are offering their fixed rate home loans as high as 4.25% for two years lock-in period.

Property Cooling Measures

The number of million-dollar flat transactions should reduce in 2023 as the 15-month wait-out period property cooling measures targets private homeowners whom are aspiring to downgrade and own executive flats.

More than 340 HDB flats were resold for at least S$1 million in the first 11 months of 2022. It broke the record of 259 deals done in the whole of 2021.