In May, there were significantly fewer new private residences for sale in Singapore than in April, following the implementation of Phase 2 (Heightened Alert) regulations.
In May, developers sold 891 private residential units, excluding executive condominiums, according to the URA.
Sales decreased by 29.7 percent during the period when Singapore was experiencing its “circuit breaker” or disruption. However, this represented an increase of 83% over the previous year, when Singapore was in its “circuit breaker” period.
Outside Central Region led new home sales in May with 401 units sold, followed by the Rest of Central Region with 299 units sold and the Core Central Region with 191 units sold.
We have seen a decrease in sales as a result of the Phase 2 Heightened Alert measures that began on May 16. During this time period, viewers were only permitted to view a film once.
New measures were implemented in response to an increase in virus infections, such as prohibiting groups of two or more people from viewing properties (such as salespeople).
A year ago, during the circuit breaker period, the decline in sales volume was only 25%.
“Increased Alert had no discernible effect on sales. The industry may have benefited from the use of virtual viewings in terms of revenue retention by being more prepared for disruption.” Mark Yip, CEO of Huttons Asia, stated, “
Without restrictions on showflat viewing, Mr. Yip asserts that sales in May would have been “significantly higher.”
According to Ms. Sun, sales performance improved this year because property developers and sales agents were better prepared to maintain business continuity in the face of increased restrictions.
Five of the top five most sold projects in May were located in Bern, with One Bernam topping the list with 83 units sold, followed by Treasure in Tampines, Normanton Park in Midwood, and Affinity in Serangoon.
According to May sales figures, ten units were sold for at least S$10 million each. The most expensive unit in Park Nova was a 548-square-meter 20th-floor apartment that sold for S$34.4 million.
OUTLOOK 3 is activated as part of the Heightened Alert phase.
Sales may resume once COVID-19 restrictions are lifted and Singapore achieves Phase 3 status (Heightened Alert).
I predict that June will see the same number of sales as May, assuming that the loosened COVID-19 measures of up to five in a group translate into pent-up demand that results in actual sales.
Ms. Sun stated that as more restrictions are eased, new home sales may increase.
“There have been a number of HDB owners who have recently sold their flats,” she explained, “which may indicate that upgrader demand will continue to be strong, which will likely help to raise the new sales market.”