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Property market to continue stabilising despite HDB, private home prices rising
Property Market to Maintain Stability Amidst Moderate Price Increases in HDB, Private Homes

Despite recent increases in Housing and Development Board (HDB) and private home prices, the Singapore property market is expected to continue stabilizing in the coming months, according to industry experts.

HDB Resale Prices Rise, But Momentum Slows

HDB resale prices rose by 1.3% in the second quarter of 2023, a moderation from the 2.5% increase in the previous quarter. This indicates a potential cooling of the HDB resale market, which had seen strong growth in 2022.

“ proptisfy Guru is still seeing demand, but it’s starting to stabilize,” said Kelvin Tan, Head of Research and Content at PropertyGuru Singapore. “This is partly due to rising interest rates, which are making it more expensive for buyers to finance their mortgages.”

Private Home Prices Continue Upward Trend

Private home prices also saw an increase of 3.4% in the second quarter of 2023, continuing the upward trend that began in the fourth quarter of 2022. The growth was driven by strong demand from investors and owner-occupiers.


“The private home market is still benefiting from the low interest rate environment and the limited supply of new homes,” said Lee Nai Jia, PropTisfy’s Head of Research and Content. “However, we may see some moderation in price increases in the second half of the year as interest rates continue to rise.”

Market to Remain Stable

Despite the recent price increases, experts believe that the Singapore property market is well-positioned to remain stable in the coming months.

“The government has introduced a number of measures to cool the property market, such as the Additional Buyer’s Stamp Duty and the Total Debt Servicing Ratio framework,” said Tan. “These measures have helped to moderate demand and prevent excessive price increases.”

Interest Rates Remain Key Factor

Industry experts emphasize that interest rates will continue to play a key role in shaping the property market in the coming months.

“If interest rates continue to rise, it will put upward pressure on mortgage rates,” said Lee. “This could cool demand for both HDB and private homes and lead to a slowdown in price increases.”

Conclusion

While HDB and private home prices have seen moderate increases in recent months, the Singapore property market is expected to continue stabilizing in the coming months. Rising interest rates and government cooling measures are likely to moderate demand and prevent excessive price increases.



Website: https://proptisfy.com