Dear Clients and Friends of Dan Ho & Associates,
Wishing you a prosperous and joyful Year of the Dragon! wishing you all at home 興旺發, 万事如意, 龙马精神. Let’s embrace the new beginnings with open hearts and celebrate the endless possibilities. Happy Lunar New Year!
In this joyous occasion, please allow me to share the summary of Singapore Real Estate Performance in 2023 and highlight what are the opportunities for 2024.
The World economic outlook remains optimistic and projected performance is very similar to what 2023 has experienced
For Singapore's Economy, We had experienced slow growth in 2023 but Analysts are confident on 2024's growth.
For those on higher interest rates (4%-4.8%) it may be a good time look at refinancing as rates are expected to dip further this year in 2024. Current fixed rates are at 3-3.5% in February 2024. I have lobang !! Let me link you up with my partner brokers.
For private residential market in SIngapore, Prices are not expected to grow too much and volume may see stability. Which mean, we are likely to see lesser record setting deals like the past 2 years.
Supply in the Primary Market (new homes) has been quite short in the past 2 years but we are expecting more launches in 2024. However they still pale in comparison in the boom years of 2019-2021. This mean that we still have lesser choices and need to be careful in entry into the market. Prices of New home remains high with minimum PSF crossing theS$2000 mark.
For 2024 New home sales, we forecast higer sale volume at stable prices and not breaking any new records. This evens out the playing field and makes it comfortable to enter the market this year if you are looking for an investment piece in the Primary Market.
Here's a snapshot of the Top Selling New condos in 2023, there are still some balance units in popular projects, reach out to me for latest availability and pricelist and potential promotions or star buys! To clarify, I can get you details and analysis on all project launches and not limited to the ones marketed by OT.
Here's an overview on the potential launches in 2024
In 2023, we see a bumper crop of projects TOPed, which was a Covid effect were several projects were delayed and they all came online at about the same time. That affect the rental market slightly as the market was flooded with available units over a steady inflow of expats and immigrants. That period was stressful for most of us with many TOP units on hand, it took a while to clear and we have to beg for patience with our clients, those that cannot afford to wait had to reduce their prices to enter into the clearance cycle (cheapest units always go off first). In 2024, we don't expect units to be 'stuck' as the supply-demand should be quite paced out.
If you are considering putting you unit for sale in the market, we are predicting higher resale prices but lesser volume (which mean I need more time to clear your unit)
In the rental market, prices has peaked and started to Stabilised, landlords looking to set new records now faces resistance and no enquires as the law of clearance cycle (cheapest units get rented out first) applies. As a landlord, we should not chase after highest price but minimum opportunity costs (minimum vacancy in-between rentals)
Moving on to HDB arena, resale HDB prices are rising faster then resale condos, partly because we have reaching the peak of the affordability of the mass market too. More are buying HDB for their relatively larger size as compared to condos. We start to see more downgraders too. Fun Fact, HDB implemented a 15 months wait out period in September 2022 to moderate demand for million flats and this 15 months ends Jan 2024. there's where we might start to see volume for 5 room million dollar flats returning.
If you are looking to enter into the 'new-ish' HDB resale market of the newly MOP units, in 2024, you will have lesser units to choose from as the expected MOP units plunges significantly over the 2 years
Expect resale HDB prices to remain high, however don't expect too much new records to be made, and lesser units might change hands. Lesser units may be in the market for you to choose from as well.
In summary, 2024 is a year of stability. Do reach out at 91991377 if you wish to have a indepth briefing and a health check for your real estate portfolio and hear about my growth strategies and potential undervalue buys. Wishing you and your family best of wealth and health in this auspicious dragon year !
