The slump in private home sales in March can continue for the full year

  • Private home sales went down by 32.4% in March 2020 compared to February 2020 as buyers resist to make purchases due to the economic uncertainty in the real estate and property market amid Covid-19 outbreak. 660 private homes were sold by the developers in Singapore in March 2020.
  • Consultants expect the sale to go down further in April and continue to fall down at a great speed throughout the year due to the current circuit breaker and the global economic recession. As per a forecast the sales will reach only 50% of 9,912 units sold last year in 2020.
  • This recession is expected to be the worst of all time by the IMF as the global economy is expected to go down by 3% due to the Covid-19 outbreak.
  • CBRE Research has revised its forecast and expects developer sale numbers to stay between 4,000 and 5,000 units for the entire 2020 owing to expected delay in project launches and softer economic sentiments by the buyers.
  • March saw 32% decline in private home sales as only 660 units were sold this month compared to 976 units sold in Feb. It was also 37.4% lower on a year-on-year basis as 1,054 units were sold in March 2019. It was a result of a sharp downfall in the Central Core Region (CCR) as 45 units were sold in this region in March compared to 412 units in Feb, an 89.1% decline in sales.
  • Sales in RCR and OCR regions moved up by 7.2% and 10.6% to 282 and 333 units sold in March respectively. With a combined total of 578, 101 units were launched in CCR, 163 were launched in RCR while 217 units were launched in OCR respectively.
  • No mega projects were launched in March and previously launched projects in the city fringe and suburbs were sold mostly which have lower price quantum of S$1.2-1.5 million, said Tricia Song, Colliers International head of research, Singapore.
  • The Urban Redevelopment Authority (URA) revealed the stats on 15th April 2020 with regards to a survey of licensed housing developers which excludes executive condominium (EC) units which are a public private housing hybrid.
  • While the revised projections show downfall, many consultants are hopeful for an increase in the sales after the pandemic is over owing to Singapore’s strong market fundamentals.

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