Most analysts expect the local new private housing market to remain buoyant in the coming year, with home prices expected to rise by between 2% and 8%, as more new projects are launched to meet pent-up demand and more foreign buyers return.
According to OrangeTee & Tie, 48 new private housing projects will be launched in 2023, with a total of 11,391 units.
In addition, two new Executive Condominiums (EC) will also be launched in Bukit Batok West, resulting in over 12,000 new private residential units.
The Other Central Region (RCR), representing mid-range condominiums, will see the largest number of units launched, accounting for 45.3% of the total, while the Other Central Region (OCR), representing mass market private housing, and the Core Central Region (CCR), representing high-end private housing, will account for 31.&% and 23% respectively.
Seven of these projects, with over 500 units, are Lentor Hill Residences, The Continuum (800 units), The Reserve Residences, Marina View, Jalan Tembusu, Pinewood A and The Reserve Residences, Marina View Residences, Jalan Tembusu, Pinewood A Residences and Teck Ming Road Residences, ranging from 598 to 1,040 units.
The new mixed-use project, Sceneca Residence in Tanah Merah, will be launched in January 2023, followed by Blossoms by the Park in One-North and Terra Hill in Pasir Panjang.
Other new private developments to be launched in the first quarter include the redevelopment of the former AXA Tower site, the Jalan Tengbuk site, Lentor Hill Residences, the Marina View site, the Newport Residences at On Shun Road (formerly Fuji Xerox Building), and the Buttermilk Farm site. The Botany at Dairy Farm, Doubletree Residences, The Hill @ One North and The Reserve Residences.
Huttons' Senior Research Director, Sidney Lee, is bullish on King's Court, The Botany at Dairy Farm and The Reserve Residences.
He noted that in the case of King's Court, buyers can get a one-bedroom flat for under $1 million, while less than 5 per cent of local private residential developments are connected to MTR stations like this one.
In One-North Technology City (One-North), where Bosun Court is located, there is little supply of private homes, with the last project, One-North Eden, already sold out.
Similarly, the Kent Ridge Hill Residences, which came on the market earlier near The Peak, and the Dairy Farm Residences, which was previously launched near Man King Hin, have also been sold out.
Real estate analyst Wong Gah Sing is bullish on the former Lakeside Apartments development. He believes that Jurong East, which currently has only one private residential development, will not be able to cope with the rental demand in the area and the buying demand from HDB upgraders. If priced at around $1,700 per square foot, it is expected to be snapped up by buyers.
The new project in Lentor is expected to be well received by buyers, according to Sun Yanqing, Director of Industrial Research and Consultancy at Orange Ease. This area is rapidly transforming into a new residential area with major shopping malls and amenities. Analysts believe that the new private housing market will remain resilient and that high interest rates are not expected to impact demand for homes.
Many homeowners who have sold their HDB flats in the past year are still looking for replacement homes, said Sun Yen-ching. Demand for housing from HDB lifters remains strong, based on good employment and income growth.
Lee Sze Teck believes that high interest rates are unlikely to affect the sale of new homes, noting that the resilience of the local property market to high interest rates is in stark contrast to the tumbling property prices in many cities around the world.
"This could be due to less speculative activity, while a strong property market may attract more interest from overseas buyers."
Sun Yanqing added that with China reopening its borders, more buyers from China are expected to return to the Singapore property market.
Analysts generally believe that despite the new round of cooling measures introduced by the government in September last year and the high inflation and uncertain economic conditions the market is facing today, the new private property listings should be well received as long as they are priced reasonably.