Singapore Property | The number of private new homes sold in Singapore during the second quarter of 2020 fell by 20.3%. 2,149 units were sold in the first quarter of 2020 and 1,713 units were sold in the second quarter of 2020. Also, the registered secondary market had a quarterly fall of 55.1% which is 933 units compared to 2,080 units in the first quarter of 2020. The overall total sales volume dropped significantly by 37.6% in the second quarter of 2020, making it the third consecutive quarterly fall since the third quarter of 2019.
The fall in private home sales was caused by the lockdown. The lockdown seems to stop disrupting the private home market, but it picked up at the end of April as the buyer started making transactions from home. According to Christine Sun, head of research & consultancy at OrangeTee & Tee, the overall prices of the first half of 2020 dropped by 0.7%. This was six months after the beginning of the coronavirus in Singapore.
More on Singapore Private New Home Sales Drop by 20.3% in the Second Quarter
“Many home seekers opt to renew their contracts to avoid the stress on looking for a new home. Some couples saw the difficulty in moving during that period should they choose to rent another place.”
“Some singles moved out to enjoy greater privacy while others looking for a more conducive atmosphere to work. Some went ahead to rent small apartments with friends as they were used to live overseas, while some are back in Singapore for local work,” says Sun.
Non-PRs and foreign buying interest from Permanent Residents (PR) also remained strong during the period. But there is a slight drop in foreigners purchasing condo compared to last year. Last year triple-digit sales were finalised during the last quarter. Non-PRs bought 121 units while PRs bought 348 units, analysts still expect the prices to remain healthy in the coming months.
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