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December 13, 2023
2024 Will Be A Buyers Market : PropNex CEO
As the year draws to a close PropNex Picks caught up with CEO Ismail Gafoor to glean some insights into what buyers and seller could potentially expect in 2024, as well as the key opportunities and challenges that lay ahead.
1. The property market is ever-evolving and 2023 has been a year marked by uncertainties and cautious sentiment. What would be some opportunities that the market can look out for in 2024, and what do you think would be the main challenges?
Ismail: The market was fraught with uncertainties in 2023 – geopolitical tensions, slower global growth, weak external demand, high cost of living, inflation, and elevated interest rates. We think a lot of the uncertainties will likely persist into 2024, at least in the first half of the new year. That being said, market confidence remains intact so far and we think the property market should stay relatively resilient in 2024.
As we look into 2024, it is perhaps worthy to note that the private residential property market has had a decent run, with private home prices rising for six consecutive years between 2017 and 2022, and in all likelihood will chalk up a seventh straight year of growth in 2023 (see Table 1). As per the Urban Redevelopment Authority’s property price index, private home prices grew cumulatively by 3.9% in the first nine months of 2023. We are forecasting a 4% to 5% price growth for the full-year 2023. Are we expecting prices to correct in 2024? The short answer is no, and we will explain why shortly.
Table 1: URA Property Price Index
Year | YOY % Change in PPI | Year | YOY % Change in PPI |
2000 | -1.0% | 2012 | 2.8% |
2001 | -11.7% | 2013 | 1.1% |
2002 | -1.8% | 2014 | -4.0% |
2003 | -2.1% | 2015 | -3.7% |
2004 | 0.9% | 2016 | -3.1% |
2005 | 3.9% | 2017 | 1.1% |
2006 | 10.2% | 2018 | 7.9% |
2007 | 31.1% | 2019 | 2.7% |
2008 | -4.7% | 2020 | 2.2% |
2009 | 1.7% | 2021 | 10.6% |
2010 | 17.6% | 2022 | 8.6% |
2011 | 5.9% |
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