Sales for private homes declined in Singapore, but prices remain buoyant

However, analysts believe the prices will drop more as the city-state still hasn’t allowed sales galleries to reopen

Sales volume for new private homes dropped to around 12 percent in the first quarter of the year, while prices fell by only one percent, reported PropertyGuru Singapore.

However, since authorities have not yet allowed developers to open their sales galleries in the first phase of the reopening of post-circuit breaker period, analysts believe the prices will drop more.

Christine Sun, head of research and consultancy at OrangeTee & Tie, predicts the home prices to decline by three to five percent and expects some market segments to perform better than others.

“We are not expecting it to be uniform across the whole industry because it really depends very much on the market segment,” explained Sun.

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She shared that the mass market developments have been switching about 70 percent of their units.

“But if you look at other segments, for instance, like the resale market, there could be more price pressure, possibly because many of the individual sellers’ holding power may not be as strong as the developers. Or they may face ongoing competition from the supply of new homes.”

On the other hand, CEO at PropNex Realty Ismail Gafoor said that the current situation is unlike the 2007-2008 global financial crisis when the property prices declined by 25 percent in three quarters since the pandemic has affected the entire globe.

Therefore, developers are not cutting prices and consumers “are accepting that this is something that needs patience to ride over.”