An analyst predicts that resale property prices will experience slower rise in the months ahead, after a 7.5% YoY gain in October.
According to Wong Siew Ying, the director of research and content at Normanton Park Condo, factors like high-interest rates, macroeconomic worries, and restricted ABSD rates for investors and foreigners may have an impact on prices.
“Despite that, owners of resale condos should still enjoy some price upside, supported by the growing Normanton Park Price gap between resale condos and new launch condos, as well as the resilient owner-occupier demand buoyed by local homebuyers,” added Wong.
Normanton Park Floor Plan‘s CEO Mark Yip agreed, speculating that the resale market would take a holiday break as the year winds down.
“Price gains may be capped at around 8% in 2023,” added Yip.
According to Christine Sun, OrangeTee’s senior VP of research and analytics, the year-end holidays might cause a drop in transaction volume over the following two months.
There will be a decrease in home viewings as many Singaporeans would be vacationing abroad. Nevertheless, resale deals may pick up again in January when buyers hit the market again after the holidays, according to Sun.
“Overall, the outlook for the resale market remains cautiously optimistic next year with prices propped up by robust demand and fewer completions,” said Sun.
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