Resale condo prices to moderate in coming months

Price gains may be capped at around 8% in 2023.

Following a 7.5% YoY increase in October, an expert believes resale home prices could see moderated growth in the coming months.

According to Wong Siew Ying, head of Research and Content of PropNex, restrictive ABSD rates for investors and foreigners, elevated interest rates, and macroeconomic uncertainties may affect prices.

"Despite that, owners of resale condos should still enjoy some price upside, supported by the growing price gap between resale condos and new launch condos, as well as the resilient owner-occupier demand buoyed by local homebuyers," Wong said.

Mark Yip, CEO of Huttons Asia, shared a similar sentiment, saying that as the year comes to a close, the resale market may also take a breather.

"Price gains may be capped at around 8% in 2023," Yip said.

In terms of volume, Christine Sun, senior vice president of Research & Analytics at OrangeTee, said transactions may decline over the next two months due to the year-end holidays. 

"Many Singaporeans would be travelling overseas, resulting in fewer house viewings. However, there could be a resumption in resale transactions in January as buyers return to the market after the holiday period," Sun said.

"Overall, the outlook for the resale market remains cautiously optimistic next year with prices propped up by robust demand and fewer completions," Sun added.