The Residential Property Market in 2023

2023 is widely expected to be just like 2022, somewhat unexplainable through normal logic. The year is going to be uncertain at best, with the war in Ukraine and the current inflationary landscape remaining unabated, at least for the first half of the year. Interest rates are going to remain high with the measures adopted by the FED, and the cooling measures implemented by the Singapore government to curb property investments are expected to bite deeper.

So, what do all these mean for the residential property market. If we take what happened in 2022, and the successful new launches in recent months, it would probably mean business as usual.

Although, this defies normal logic, the strong property market is a clear testament to investors having confidence in the Singapore property market, which has been more or less a “sure-win” over the last 50 years. It’s almost a safe haven to park one’s money. Also, I believe there’s a lot of pent-up demand, especially when pre-Covid income had risen significantly. And last but by no means least, rental income is also rising significantly and is attractive to investors, probably due to the influx of foreigners coming to invest in Singapore.

The only possible obstacle at this point in time is the rising interest rates for housing loans.

The bottom line is, cash-flow planning by property investors has become a lot more important compared to the past.