Private property prices rose by 8.6% in 2022. Price growth slowed to 0.4% in the fourth quarter of 2022 because no major new non-landed residential projects were launched.

The real estate market experienced its lowest ever supply of new homes in 2022. Developers launched only 4,528 units for sale, less than half of the 10,496 units offered for sale in 2021.

Given the number of unsold units on the market at 16,152, buyers lack choice. This is 11,615 units below the ten-year average (2012-2021) of 27,767 unsold units.

As a result, there is a large amount of pent-up demand in the market and it has become a common sight to see a crowded sample room whenever a new project is launched.

The first two major off-site projects in the second quarter of 2022 - Piccadilly Grand and LIV @ MB in the other Central District (RCR) - were well received by buyers, with over 70% of the units sold on launch day.

Similarly, the three projects launched outside the Central District (OCR) in the third quarter of 2022 - AMO Residence, Lentor Modern and Sky Eden@Bedok - also received an overwhelming response from buyers.

AMO Residence was almost sold out, while Lentor Modern sold 84% of its units on launch day.

Sky Eden@Bedok sold 75 per cent of its units on the first day of sales.

Outside the Central Region (OCR) achieved impressive sales despite a benchmark median price of over S$2,000 per sq ft and rising interest rates. This reflects the demand and desire of buyers for private homes and the acceptance of new pricing standards.

A vibrant HDB resale market has provided ample liquidity for buyers to upgrade. Due to the nature of the staged payments, rising interest rates did not dampen sales by developers. The first loan payment is a small amount of 5% of the purchase amount, usually when the local base is completed a year later.

In 2022, developers sold 7,099 units, with 1,896 units in the Core Central Region (CCR), 2,732 units in the Other Central Region (RCR) and 2,471 units outside the Central Region (OCR). This is 45.5% below 2021 and is the lowest sales by a developer since the global financial crisis in 2008.

However, this is still a strong set of figures considering that developers also have the lowest number of units for sale to be launched in 2022. Table 1 below lists the top 10 best-selling projects in 2022.

In 2022, resale prices start to pick up as benchmark prices are set for the new housing market. However, rising interest rates and a tightening Total Tasting Debt Ratio (TDSR) are limiting buyers' budgets, while limiting transaction volumes in 2022. The resale market saw 14,026 transactions, down 29.7% from 2021.

The top five nationalities of buyers buying in Singapore are China, Malaysia, India, the US and Indonesia.

 40.1% of transactions in 2022 will be for less than S$1.5 million, 22.8% will be between S$1.5 million and S$2 million, and 37.1% will be for more than S$2 million.

In 2022, local citizens accounted for 79.1% of purchases, while permanent residents and foreigners accounted for 16.1% and 4.3% respectively.

The fourth quarter of 2022 saw the launch of two executive condominiums, Copen Grand and Tenet, both of which achieved very strong sales results on launch day.

Copen Grand sold out after only one month of launch, while Tenet sold over 93% of its units after one month. executive condominiums offer an attractive option for HDB upgraders, and the desire to upgrade to an executive condominium is strong.

In addition, eligible buyers can opt for deferred payment plans to avoid the current high interest rates. It is therefore not surprising to see such bright results.

An executive condominium may be launched at 8 Bukit Batok West Avenue in 2023. This project should outperform as the current inventory of unsold executive condominium units is very low.

According to advance estimates, Singapore's economy will grow by 3.8% year-on-year in 2022, better than the official forecast of 3.5%. While the government expects Singapore to be recession-proof in 2023, this will depend heavily on external conditions.

The supply of new homes will pick up in 2023, with an estimated 10,000 to 12,000 units spread across 40 projects. According to the estimated units, 20% will be in the core Central District, 50% outside the Central District and 30% in the other Central Districts.

Sceneca Residence, which was first launched in 2023, achieved a good sales result on launch day with 60% of the units sold. One-bedroom units start at S$958,000; two-bedrooms from S$1.33 million.

One-bedroom units are hard to find in the market today for less than S$1 million. Savvy buyers are realising this and are snapping up all the one-bedroom units. Two-bedroom units are sold out and at a price point that is an attractive entry point for HDB upgraders, priced between S$1.5 million and S$2 million, they are easily accessible to buyers.

There has been no major project launch in the market since September 2022 and there is some uncertainty about the direction of the market in 2023. This strong result should dispel any doubts about the strength of the market and set the tone for the upcoming launches in February and March 2023.

Other projects likely to be launched in February 2023 and March 2023 include Blossoms by the Park, Gems Ville, Lentor Hill Residences, Tembusu Grand, Terra Hill, The Botany at Dairy Farm and The Continuum.

Following the relaxation of border controls in China, enquiries and views from Chinese buyers picked up in the last two weeks of January.

Several units at Klimt Cairnhill and 3 Orchard By-The-Park were said to have been bought by Chinese buyers in the past two weeks. 2023 will see the luxury segment of the property market benefit from Chinese buyer demand.

At the end of 2022, the market had an unsold inventory level of 16,152 units, down from a low of 16,929 units in the second quarter of 2017.

New sales in 2023 are likely to be between 9,000 and 10,000 units, supported by more new property launches. Land prices have been stable, which means the market is unlikely to see benchmark prices. Higher construction costs and a lower unsold supply in the market could add up to 5% upward pressure in 2023.