The growth of home prices in Singapore decelerates in the last quarter of 2022, affected by higher borrowing costs, Invest-Gate reports.

According to data released by the Urban Redevelopment Authority (URA), home prices in Singapore inched up 0.2% YoY in Q4 2022, the worst quarterly data in the year.

The decline in home sales results from the lower supply. However, the housing sector in Singapore keeps a positive sentiment, as the decline in supply pushed up prices.

Senior Vice President of Research and Analytics at OrangeTee, Christine Sun, notes that the strong labor market supports [home] sellers’ pricing force.

Sun remarks that they wouldn’t opt for significant decreases in prices, adding that demand is still strong and prices will probably rise in 2023.

Home prices are expected to increase by a range between 5% and 8% in 2023, she highlights.

It is worth noting that the three biggest banks in Singapore upped fixed interest rates for mortgages in November.