The real estate industry has faced a tumultuous 2020, with buyers and investors alike feeling the financial impact of the COVID-19 pandemic. However, PropertyGuru, Southeast Asia’s leading online property group, remains optimistic about property demand in the coming year. According to the group’s latest report, new private home sales have dropped 17.3% in November, but they are forecasting a healthier market in 2023. This article looks at the trends in the property market and what it could mean for investors.
PropertyGuru Expects Healthy Property Demand in 2023
A bullish outlook is expected for the Singapore property market this coming 2023, according to PropertyGuru’s CEO, Hari V. Krishnan. He said that despite the economic slowdown caused by the pandemic, the long term indicator is still strong and there is hope for a comeback. This optimism is backed by robust investor confidence in the real estate sector.
The industry, however, is going through a structural shift, as concerns about its sustainability and profitability are rising. The demand for properties has decreased significantly during the past few months. In November 2020, the sales of private homes dropped 17.3% from the previous month. This could be attributed to the various travel restrictions and pandemic safety measures still in place, leading to a lack of urgency among consumers to make large purchases.
In the future, the impact of COVID-19 is likely to shift the paradigm of the real estate industry in the country. Despite this, PropertyGuru remains confident that by 2023, the property market will be on a more solid footing with positive signs of improvement and renewed appetite for investments. As the industry has withstood prior economic turmoil, the expectation is that it will come out of this pandemic stronger than before.
Overall, PropertyGuru’s predictions for the property market suggest a healthier future for the industry in 2023, though current private home sales in November experienced a drop of 17.3%. The real estate industry remains an ever-changing market and these statistics are evidence of regional market forces and underlying sentiments that are driving people’s decisions. Thus, it is essential that buyers, sellers, and investors have a clear understanding of their respective needs and current market conditions to make wise and informed decisions.
