Residential prices to drop by 0%-5% in 2023

Year-to-date prices have declined by 10%.

Cushman & Wakefield experts predict a further 0% to 5% decline in residential prices in 2023 following slow market activity in 2022.

Year-to-date, prices have dropped more than 10%. Meanwhile, monthly transactions were averaging less than 4,000 units.

“Whilst buying sentiment in 1H 2022 was mainly affected by the fifth wave of the pandemic, the market witnessed other emerging impacts in 2H 2022, including rising interest rates and stock market volatility, which prompted buyers to remain cautious and transactions to slow in both primary and secondary markets,” C& W said.

Given these factors, C&W expects the total 2022 transaction volume to hit 45,400 units, the lowest level of the past decade. 

For prices, C&W expects a price drop of 12%–13% by the end of this year.