Singapore’s residential property market has been muted in the first quarter of 2020, with private home prices declining 1.2% quarter-on-quarter – or its first quarterly drop since the first quarter of 2019.
This comes even as banks revised their home-loan offerings to attract borrowers, according to Edmund Tie.
With sentiment remaining weak amid the cooling measures in place and the job market rendered insecure by the Covid-19 pandemic, Edmund Tie expects homebuyers to show greater caution in home acquisitions at least for the first two quarters of 2020.
Read: Covid-19 Home Loan Deferment: What Is It, What’s the Catch and How Do I Apply for It?
“In an already quiet market environment, the closure of sales galleries, mandated by the government “circuit breaker” measures, is expected to dampen demand even further,” it said.
On 3 April, the government mandated the suspension of activities at workplace premises to reduce the transmission of Covid-19, with sales galleries likely to remain closed until 1 June.
However, it noted that many of the physical visits at sales galleries have evolved into virtual tours, helping potential buyers with their decision-making once the situation stabilises.
Read: Why Now Is a Good Time to Buy a Property
And with the financial markets exhibiting greater volatility amid the Covid-19 situation, non-institutional investors will likely turn to real estate, especially residential properties.
“While demand from homebuyers is weak at this point in time, volatility in the financial markets may encourage institutional and high-net worth investors to look into real estate as an asset class to park their money in,” said Margaret Thean, Executive Director and Regional Head of Residential at Edmund Tie.
“Real estate in Singapore, in particular residential properties, has proven to be reliable assets that have enjoyed both capital gains and good rental yields,” she added.
Looking for a property in Singapore? Visit PropertyGuru’s Listings, Project Reviews and Guides.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg