We don't usually focus too much on the results of a single quarter, but this is an exception. Q2 of 2023 marks the first time we've seen a faint dip in property prices, since around Q1 of 2020.
But it should be noted that private homes were in short supply as well; this was partly due to a cut in the supply of Government Land Sales sites in 2020, in response to Covid-19. "Based on the expected completion dates reported by developers, 19,291 units [including ECs] will be completed in 2023. Another 12,824 units [including ECs] are expected to be completed in 2024.
"Regardless of the actual increase, the market will still dip in the near term. It's not about the maths. They [the property buyers] are just speculating that prices may dip. Whether it's up one per cent or three per cent, the reaction is predictable." "These claims that ABSD are only affecting niche groups are not very well thought out. The impact is definitely there. We don't know how much higher prices would be right now if it wasn't for ABSD.
One realtor opines that more buyers are backing out, over fears of affordability. She says that higher inflation, coupled with rising interest rates, were the reasons given by clients for backing out of upgrading: These factors have seen more conservative bids from buyers and may be compelling developers to price their units more conservatively.This may not seem directly relevant to the private market, but some realtors have remarked on the knock-on effect. HDB flat prices slowed in December 2022, with analysts predicting some moderation in prices this year.Realtors pointed out that most HDB upgraders are highly dependent on the sale proceed of their flats, to cover the cost of upgrading to a condo.