Proportion of loss-making resale home deals up in June

Cheryl Chiew11 Aug 2021

Singapore apartment housing with Central Business District city view daytime

In the resale market, the share of loss-making transactions stood at 13.8% in June, up from 10.5% in May 2021.

The share of loss-making residential transactions in Singapore’ secondary market increased in June, reversing the decline registered in April and May, after the government introduced heightened restrictions due to rising COVID-19 cases, reported The Business Times (BT).

Edmund Tie Research data showed that the share of loss-making transactions in the resale home market increased to 13.8% in June, after falling from 12.2% in April to a record low of 10.5% in May. The figure stood at 14% in March.

On a quarterly basis, however, the proportion of loss-making transactions improved from 14.6% in Q1 2021 to 12% in Q2 2021.

“While we are likely past the worst from a market distress perspective, we expect there could still be bumps in the months ahead given the fluidity of the Covid-19 situation and how large clusters could flare up,” said Lam Chern Woon, Head of Research and Consulting at Edmund Tie and Company, as quoted by BT.

“The latest re-imposition of a two-person social gathering and home viewing limit will dampen viewings and transactions before the market comes to terms with it.”

With this, Lam expects more owners to be “more flexible about their asking prices, voluntarily or otherwise, in order to reduce the marketing process duration”.

The trend was also evident in the non-landed resale home market, which saw the share of loss-making transactions fall from 13.4% in April to 11.6% in May, before rising to 15.3% in June. In Q2 2021, the proportion of loss-making deals in the non-landed resale market declined from 15.5% in Q1 2021 to 13.2%.

For the first half of 2021, the share of loss-making deals for non-landed and landed properties stood at more than 13%, down from the 17% and 14% registered in 2020 and 2019, respectively.

The performance, however, varies by market segment, with deals within the Core Central Region (CCR) witnessing greater volatility last year and in H1 2021 compared to the Outside Central Region (OCR).

“Given the prevalence of buy-to-let purchasers in the CCR region, it is not surprising to see that fortunes are more readily made or lost in this market segment,” said Lam.

“On the other hand, the general improvement was more steady in the OCR and it suggests that owner-occupiers in this segment may have been more financially prudent in making their property purchases,” he added.

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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email:


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