Despite moderate sales because of the existing circuit breaker period, the property market still showed its pliability and Hutton Asia anticipates a jump of more or less 8,000 to 8,500 units for 2020, with several project launches on board.
While under the existing circuit breaker, almost all developers’ sales dived to the deepest bottom level, where it sold only 277 units for April, which means less 58% from the past month and only 62.4% same months for the previous year, divulged in the latest report of Huttons Asia.
It was in January 2009 when developers experienced the lowest monthly sales ever, with 108 units sold.
“Contrary to 2009 of January with the absence of circuit breakers, despite the pandemic, April 2020 sales are far better,” HuttonHuttons said.
“At first there was some anxiety that sales might turn gloomy given that the market galleries were all closed. But not with April’s developers, who proved the other way around. Buyers were responsive to digital viewing, which yielded nearly 100 sales and culminated following circuit breaker policy measures.”
Property sales remain active despite having the government stretch the existing circuit breaker for another month up to June 1.
While market sales galleries and ocular viewings were temporarily suspended, the controversial circuit broker’s policy lifting on June 1st ended with a crowd of buyers deciding to take the risk.
As of May, its recent sales climbed as high as 75.8% for 487units in a month-on-month scheme. The unexpected hike in demand attracted property developers to open additional units for sale,” explained Hutton.
Having this, market sales for the first 3 weeks of June ( prior to reopening of market galleries) can match with the registered sales for the whole month of May.
Suppressed demand stimulated monthly sales above 100% in June, the highest ever for 2020,” per report.
Remarkably, 54% for June’s sale, out of the 12 days of ocular and physical viewing that ran from June 19 -30 and the rest underwent 18 days of digital or virtual showing.
Though there was a shift to virtual viewing, some buyers still wanted to see the physical property unit.
The June sales breakdown presented huge deals that took place around the areas of the Core Central Region after the go signal for physical viewing thus yielded to an average quantum up from as high as $1.51 million down to $1.43 million.
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Huttons stressed that June’s major hike in developer sales was never expected, and the current trend was emulated by other neighbouring countries.
Meanwhile, the number of foreigners buying properties either new or resale in Singapore continues to decrease because of the travel ban plus the 14-day quarantine.
“The local real estate business is 100% back up by Singaporeans which means a slight adjustment of purchases made by foreigners is having a less magnitude on the property market.”
With the resale of the property market, the deals within have dropped to almost 60% solely because of the restrictions on physical showing.
With the reopening of the physical viewing routine, sales climbed 65 % month-on-month for June.
Even though resale numbers were a bit higher for Q2 2020, this was attained per the back of the report for lower volume and perhaps this doesn’t magnify the market,” shared Huttons.
Sales of the recent executive condominium units also significantly decreased to as low as 50 units in 2020 Q2. This happens due to the absence of EC launches within the period.
For the entire 2020, Huttons wish to see huge sales, specifically 8, 500 units a max, and a minimum of 8,000 units.
“While Singapore’s economy contracted by at least 12 percent in the second quarter of 2020, economists believe the worst will soon be gone and recovery is on the way,” the economist said.
“The resilience in this business as a motivating factor among wholesalers or investors will attract sales in the market.”