The Singapore property market registered a 350% revenue increase in the first two months of 2021, a positive marker of increasing consumer confidence
A recent study by the real estate consultancy group Knight Frank suggests Singapore is among the most preferred destinations for Asian buyers. But the ground realities paint a mixed picture.
Consumer confidence has improved as the Singapore property market witnessed a 350% revenue increase in the first two months of 2021. As the country prepares for a COVID-19 vaccination roll-out, the million-dollar price tags on Singapore’s houses have made a comeback.
The year started with investors rushing to buy properties, anticipating policy changes. It is also believed that the buying frenzy was inspired by the launch of a mega housing project called Normanton Park.
Although the momentum was lost by February 2021, the YoY figures were much better than what was seen in 2020.
The sales for February 2021 stood at a mere 645 units, which is the lowest monthly sales since the 998 units that were sold in June 2020. However, sources believe that February’s poor sales performance is not because of the lack of buying interest but a result of the decline in the new project launches in the month. Another reason believed for the decline in property sales in February is the annual lunar new year break.
Experts say that new housing project launches mean more sales in the initial phases. The sales numbers of new launches are usually stronger in the beginning and eventually, the curve gets flattened.
With only 167 new units up for sale in February, the decline in the sales was more or less expected. This is even lower than the number of units launched in April and May 2020, when Singapore was practically halting its business activities in the wake of COVID-19.
In the past, whenever there was a lack of new housing project launches, the monthly sales volumes would naturally fall. Despite that, in the second month of the new year, there were nearly four homes sold for every new unit launched, suggesting that buyer interest remain intact.
Despite the grim scenario when it comes to new project announcements, the market still saw a 42.7% increase in sales when compared to the same period last year. Considering that the YoY comparison is with the pre-pandemic period, there are still reasons for prospective buyers to be optimistic.
Source: Singapore Business Review
