SINGAPORE (Singapore Property Advisors) – Wishing you a very warm and Happy New Year!
2020 was a unique year where we conquered many new frontiers. Let’s have more breakthroughs in 2021 and soar to new heights together. May everyone enjoy good health and happiness as we embark on another chapter of excellence!
HOME sales in Singapore so far in this pandemic-ravaged year have exceeded expectations amid a lower-for-longer rates environment and a still-low unemployment rate – a phenomenon also playing out in some other countries.
Buyers have pushed new homes sales for the first 11 months of 2020 to about 8,788. Projections for full-year sales range from 9,600 to 9,700 units, which some find comforting given the current health and economic crisis. Last year, developers sold 9,912 units.
With the strong volume, some expect that private residential property prices for 2020 as a whole may end in positive territory after prices rose 0.8 per cent quarter-on-quarter in Q3, nudging the overall price index up 0.1 per cent year-to-date. In comparison, prices increased by 2.1 per cent in the first three quarters of last year. (Data Extracted from Business Times)
Various measures, such as allowing borrowers to defer their loan repayments, and temporary relief measures, such as granting a waiver of extension charges of up to a total of six months for developers applying to extend their existing completion and/or disposal deadline, have probably prevented homeowners and developers from slashing prices to move sales.
The year started off well but the “circuit breaker” almost brought sales to a standstill with 277 transactions inked in April, a monthly low not seen in many years. The previous low was in December 2014, which saw 230 transactions.
Confidence returned subsequently and takeup rebounded strongly to sales of 1,083 in July, followed by 1,258 and 1,329 in August and September respectively.
October’s poor showing of 642 was due to buyers holding back on purchases following the clampdown on the reissuing of options to purchase (OTPs) by developers, analysts reckoned.
The OTP tightening to prevent market distortion was announced on Sept 28 and gives the impression that any incipient froth is nipped in the bud.
The new conditions included restricting developers from providing upfront agreements to buyers to reissue the OTPs, restricting developers in the reissuing of OTPs to the same buyers for the same unit within 12 months of the expiry of the earlier OTP, and requiring that developers inform buyers of this condition upfront.
That’s sum up a 2020 Singapore Property Market and set path for a new 2021
You might be Keen on : Overseas International Investment with 55% Guaranteed Rental over 10 Years – The Peak Shoppes
The market is gearing up for three launches in Jan 2021 – Normanton Park, Parc Central Residences and The Reef at King’s Dock.