Condo resale volume went down by 57.3% in April due to Covid-19

    • As per the latest Flash data, the volume of condominium resale went down by 57.3% in April 2020 due to the circuit breaker measures put into effect from April 7, 2020 to control the effects of Covid-19 pandemic. The prices however were not much affected by the implemented restrictions.
    • According to the reports from SRX property – a real estate portal, the number of units sold in April went down to 309 from 723 units sold in March 2020. The resale also went down by 62.2% on a year-on-year basis compared to the number of units sold in April 2020.
    • It was also 66.8% down from the 5-year average volume for the month of April.
    • OrangeTee and Tie’s head of Research and Consultancy Christine Sun, found the figure of 309 for the resale transactions to be very encouraging considering the house viewings have been put to a halt due to circuit breaker measures.
    • Despite virtual housing tours being conducted by some developers, it will definitely take some time for this to gain some tractions as potential buyers will look forward to inspect the property at least once before finalizing the deal.
    • While the resale volume in April 2020 was lower than the previous months it was not the lowest of all time. As per URA Realis data, 305 units sold in January 2015 were the lowest number of units sold ever.
    • The month-on-month drop was not even the lowest one as resale volumes went down by 62.2% in January 2012 and 69.6% in February 2013.
    • It is predicted that the resale volume will drop further to 250 units to 300 units in May 2020 as circuit breaker measure have not been lifted yet and it will go up to around 500 units once the circuit breaker measures will be lifted.
    • The pricing for resale flats went down by a meagre 0.2% in April 2020 compared to March 2020 as sellers refrained from moving from their asking rate. It was 0.7% lower than the resale volume in April 2019.
  • The Transaction over X-value (TOX) showed downward pressure which means that properties were sold at lower prices than their original value. TOX value was negative $11,000 from negative $2,000 in March 2019.

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