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For the public housing segment, the HDB resale market posted a stronger performance than the private residential market in 2020. - photo: Mediacorp
At the beginning of the pandemic in Jan last year, many property market analysts predicted that prices of private homes could dip by 3 per cent to 8 per cent this year, while a few expected prices to fall by more than 10 per cent.
Singapore's public and private property new launch and resale market continued to recover not just from the Covid-19 fallout but also from the 2018 cooling measures, with sales volume and private properties & condo prices gaining close to 3% and nearly a 5% increase for HDB resale prices.
Demand and prices of resale homes had been muted since property cooling measures were implemented in July 2018, with monthly transactions falling below 1,000 units. But from July to November this year, monthly sales exceeded 1,000 units.
The resale market has rebounded strongly - after a slow second quarter which included the circuit breaker period - driven by pent-up demand, a better match in price expectations between sellers and buyers, as well as returning confidence as the Singapore economy continues to recover, said Ms Wong.
"With the healthy demand coming though, we expect sellers to hold asking price firm or raise the price of more attractive units," she said.
Singapore's public and private property new launch and resale market continued to recover not just from the Covid-19 fallout but also from the 2018 cooling measures, with sales volume and private properties & condo prices gaining close to 3% and nearly a 5% increase for HDB resale prices.
Demand and prices of resale homes had been muted since property cooling measures were implemented in July 2018, with monthly transactions falling below 1,000 units. But from July to November this year, monthly sales exceeded 1,000 units.
The resale market has rebounded strongly - after a slow second quarter which included the circuit breaker period - driven by pent-up demand, a better match in price expectations between sellers and buyers, as well as returning confidence as the Singapore economy continues to recover, said Ms Wong.
"With the healthy demand coming though, we expect sellers to hold asking price firm or raise the price of more attractive units," she said.
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OrangeTee & Tie head of research and consultancy Christine Sun said: "Many investors have already looked past current headwinds and are banking hopes on a vaccine success, and are optimistic that the global economy may see better days ahead.
The highest transacted price in November was for a resale luxury apartment at Nassim Jade in prime District 10 which sold for $11.7 million.
The highest transacted price in the RCR (city fringes) was $6.9 million for a unit in Corals at Keppel Bay in the Harbourfront area, while a unit in The Chuan, in Lorong Chuan, resold for $3.6 million, the highest price in the OCR.
Singapore is not the only place that has experienced a surge in property sales. Major cities across the world are also experiencing an increase in sales and prices of properties and homes in 2020.
The Covid-19 pandemic is an unprecedented global crisis that has overwhelmed healthcare systems and upended businesses around the world. While it has ravaged economies worldwide and consumer sentiment remains subdued, property prices are going up for many countries especially in Asia.
The highest transacted price in November was for a resale luxury apartment at Nassim Jade in prime District 10 which sold for $11.7 million.
The highest transacted price in the RCR (city fringes) was $6.9 million for a unit in Corals at Keppel Bay in the Harbourfront area, while a unit in The Chuan, in Lorong Chuan, resold for $3.6 million, the highest price in the OCR.
Singapore is not the only place that has experienced a surge in property sales. Major cities across the world are also experiencing an increase in sales and prices of properties and homes in 2020.
The Covid-19 pandemic is an unprecedented global crisis that has overwhelmed healthcare systems and upended businesses around the world. While it has ravaged economies worldwide and consumer sentiment remains subdued, property prices are going up for many countries especially in Asia.
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So who are buying properties during this Covid pandemic? Due to strict travel restrictions, locals are now dominating the private residential market across all market segments. Locals made up more than 80 per cent of private non-landed homes. This is the highest proportion of properties bought by Singaporeans ever recorded since the first quarter of 2009.
Most private home buyers are HDB upgraders, middle-aged investors, families with young children, young executives, retirees and a number of former owners of homes sold en bloc.
Some of these owners do not mind paying slightly more for an older but larger property, especially if they are buying it for their own occupation. This may explain why demand for large-sized private homes has been rising.
Kiwi Lim from Huttons Asia remains optimistic about the long-term prospects of Singapore's residential market. The fundamentals of our country - political stability, pro-business environment, safe haven status, excellent healthcare system and robust legal system - have remain unchanged throughout the pandemic.
Consumer confidence will continue to pick up as Singapore is seen to be handling Covid safety measures well. The prospect of an increase in economic activities worldwide will definitely help revive many businesses this year. Many nations are already preparing to roll out large-scale vaccination programmes this year in order for countries to open up their economies.
Most private home buyers are HDB upgraders, middle-aged investors, families with young children, young executives, retirees and a number of former owners of homes sold en bloc.
Some of these owners do not mind paying slightly more for an older but larger property, especially if they are buying it for their own occupation. This may explain why demand for large-sized private homes has been rising.
Kiwi Lim from Huttons Asia remains optimistic about the long-term prospects of Singapore's residential market. The fundamentals of our country - political stability, pro-business environment, safe haven status, excellent healthcare system and robust legal system - have remain unchanged throughout the pandemic.
Consumer confidence will continue to pick up as Singapore is seen to be handling Covid safety measures well. The prospect of an increase in economic activities worldwide will definitely help revive many businesses this year. Many nations are already preparing to roll out large-scale vaccination programmes this year in order for countries to open up their economies.
Extracted from Channelnewsasia and Straits Times articles
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