In fact, a client who’s been renting for the past 3 years called me immediately after seeing this news.
Why is this as such?
As mentioned already in the article, the current market is still facing low supply with many projects selling fast.
The most recent projects like Lentor Modern, Sky Eden and AMO have clearly shown the buying strength from the ground. Outside Core Region OCR projects transacting more than $2000psf, truly amazing.
As we are opening up quickly after covid, a surge of incoming rental demand comes in strongly. Plus the fact that many local families are still not yet collected their keys to their houses that have been delayed by the late construction.
2023 however, I believe will be a year where sellers will start to face resistance where the buying momentum would not be as strong as compared to 2021/22.
On the ground right now, I am already seeing more realistic priced listings that remain unsold after 1 month.
Sellers who are still aiming to beat the record high will need to adjust their expectations moving into an uncertain new year.
The prices will remain higher as compared to 2019, 2020 but may face challenges breaking the high of 2021, 2022. (If that makes any sense..)
So the tenant was worried about his next move, he has clearly priced out of the market. He has sold his condo in year 2019 and think that the market will correct itself.
Covid came, there was indeed a slight dip in price, he believed that prices would go even lower. Plus he was busy with coping the new norm at work.
The sad thing is that the funds that he got after selling his house in 2019 would have able to get him a decent 3 bedroom condo back then.
Now, his options are really old condos for the 3 bedrooms option or HDBs.
For property that are for own stay purpose, it is risky to time the market. He has incurred rental loss for 3 years and plus the fact that now he can only buy back a smaller unit with the same amount of money or a HDB.
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