Resale condo property transactions hit two year high in August 2020

News Flash

RESALE volume of non-landed private homes in Singapore hit a two-year high in August 2020, with an estimated 1,052 units resold in the month, up 7 per cent from the 983 units resold in July 2020.

Overall resale prices edged up 0.4 per cent month on month and year on year, according to flash figures from real estate portal SRX Property on Tuesday.

This comes as the property market recovers from the slowdown encountered during Singapore’s “circuit-breaker” period, benefiting from pent-up demand.

By region, SRX said 59.5 per cent of the units sold came from sales in the outside of central region (OCR), 20.8 per cent from the core central region (CCR) and 19.7 per cent from the rest of central region (RCR) or city fringes.

Condo prices in the CCR and RCR declined year on year by 3.1 per cent and 1.7 per cent respectively, while OCR prices rose by 2.8 per cent.

Source: The Business Times – 8 Sep 2020

Our Thoughts

The circuit breaker might have an impact on people’s mindsets as the forced stay at home measures meant lesser alone time, difficult work arrangements due to children and/or parents living together and space constraints.

All these factors could have accelerated the decisions of those who were still browsing for their first homes, those who were planning on balloting for BTOs or getting new launch private condos (delayed construction) and those who planned on upgrading to bigger units, resale condos with balconies and facilities to indulge in the event of another circuit breaker. 

The real stress test will come next year as Singapore and the rest of the world seek a vaccine for the virus, which has paralysed global mobility and caused loss of incomes. 

That said, we have many cooling measures that are already in place pre-COVID-19 and these have served to maintain a resilient property market. On the ground, there are buyers who are already actively seeking for fire sale deals especially in the private resale market.

Contact us for a discussion over coffee if you like to find out more!

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