SINGAPORE – Singapore’s private home prices grew at their slowest pace in two years in the fourth quarter of 2022, as sales fell more sharply than expected on a dearth of major new launches, rising mortgage rates, property curbs and a slowing economy.
But most analysts expect the momentum to continue in 2023, with prices projected to rise between 2 per cent and 5 per cent, if housing demand and household balance sheets remain resilient amid rising interest rates, higher home prices and property curbs.
In the fourth quarter, private home prices grew just 0.4 per cent. This was slightly higher than the Urban Redevelopment Authority’s (URA) flash estimate of a 0.2 per cent gain, but lower than the third quarter’s 3.8 per cent rise and second quarter’s 3.5 per cent increase.
OrangeTee & Tie’s senior vice-president of research and analytics Christine Sun noted: “Buyers in Singapore are starting to feel the impact of higher mortgage payments, but most can still service their loans as stringent property curbs are in place to ensure buyers remain prudent, and our job growth is still healthy.”