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Singapore: With the extension of Circuit Breaker extending for another 28 days to 1st June, developer new home sales is expected to hit new low as developer continue to close its sales gallery as part of Circuit Breaker measures.
Still, April home sales likely to sell close to 300 units which is consider pretty awesome for the fact that sales galleries are also close during the month of April from 7th April. Kopar at Newton was the last to launch the development on 2nd April prior to the closure of the showflat on 6th April. Still, Kopar managed to sell 77 units on their first weekend of launch on 4/5 April.
The secondary market also reported low transactions to probably about 250 for the month of April.
Property Viewing goes Virtual?
As property developers close their sales gallery in line with circuit breaker measures, more developers and proper agents are adopting virtually tour in their marketing to allow their prospect to view the showflat virtually at their own convenience, at the comfort of their home.
There is proven effective as there are a couple of units sold during this circuit breaker without the buyer having to view the showflat. At the end of the day, showflat does not entirely represent the unit you be getting. You only get 4 walls together with all the fittings as compared to what you see in the showflat. That is why, the fundamentals is more crucial, choosing the best unit at the best price, having a safety net to cushion off your best price is more important than viewing the beautiful showflat.
Lowest transactions since Global Financial Crisis?
Still, with developers continue to close their sales gallery going into May as part of circuit breaker measures, new home sales likely to hit another new low together with the secondary market. May transaction is likely to be the lowest in the entire year with analysts predicting about 100 to 150 units transacted for May 2020. This figure will b the lowest in a decade.
However, during the Global Financial Crisis although hit new low in the range to 100 to 200 units per month from October 2008 to January 2009, but thereafter new home sales hit more than 1000+ units every month as savvy investor took advantage of the low entry point to come into the market again that mark the return of market recovery.
Launches to be extended to the 2nd half of 2020
Most developers are likely to hold their launches to the 2nd half of 2020 after the circuit breaker measures. Market likely take some time to warm up prior to return to a normal level. 2nd half of 2020 likely to see healthy numbers as developers bring forward to launch their projects to launch on the 2nd half of 2020 of which some are supposed to launch in April / May 2020.
Also, as more foreign workers activities are being restricted including Malaysian workers, showfat galleries and constructions are expected to be delay likely to the 4th quarter of 2020.