OUTLOOK FOR 2024
Analysts forecast that prices for private home prices will remain elevated, but a better economic outlook in 2024 could boost buyer confidence.
“The market may only see up to 30 launches and between 7,000 and 8,000 launched units in 2024,” said Mr Lee, similar to last year’s 26 project launches and 7,551 launched units.
While there may not be any cut to interest rates in the second quarter of the year, he said the impact of the high for longer interest rates is “likely to be muted” as many buyers have become accustomed to it.
“Economic conditions are (forecast) to be better in 2H 2024 and that may boost the sentiments and confidence of buyers,” Mr Lee added.
Barring unforeseen circumstances, he said developers may sell up to 7,000 new homes while prices are expected to be stable, increasing up to 5 per cent in 2024.
Similarly, Mr Chu said that despite lower land prices in the first quarter of the year, factors such as a more fragmented supply chain, sustainability considerations, and higher-for-longer interest rates will likely keep new home prices elevated
“Home prices may have stabilised, but overall cost has increased substantially.”
ERA forecasts private home prices to rise between 4 per cent to 6 per cent year-on-year by the fourth quarter of 2024, noted Mr Chu.
“For the whole of 2024, new home sales could reach between 7,000 to 8,000 units, while the total resale and sub-sale transactions could range between 12,000 and 13,000 units.”
