Covid-19 fallout has caused considerable turbulence in the business and real estate sector. However, even after this major fallout, the private property resale market in Singapore is still rising higher. After the implementation of cooling measures in the year 2018, these prices climbed consistently for the fifth month as reported in December.
For the entire 2020, the real estate experts have observed a considerable rise of 1.4% in the prices of condominium resale values. However, it is slightly lower as compared to the 1.8% rise reported in the year 2019. Note that the overall resale price for the non-landed properties in Singapore also rose by 0.3% as compared to the previous month.
If we talk in terms of resale volume, it was decreased by 5.1% as an estimated number of 1236 units were resold in the month of December as compared to 1302 units of November month. Still, reports reveal that it is the sixth consecutive month when resale volume rose above the threshold of 1000 units.
The sales volume from last month is also reported to be 79.4% higher as compared to December 2019; however, it is 96.4% more if we compare it with the five-year average volumes considering the month of December.
Although the year 2020 was full of uncertainties due to the pandemic effect and several fluctuations in the economy, still the real estate market reported resale transactions for a total of 10,712 units in the entire year. This value is almost 18.1% higher as compared to the year 2019.
Stats reveal that the private resale market is enjoying benefits of the completion of the five-year minimum occupation period for a wide range of Housing Board flats in the years 2019 and 2020. Experts reveal that almost 24500 HDB flats in the Singapore real estate market were available for resale in the previous year, which is more than double the estimated count of 10400 flats reported to complete the five-year minimum occupation period in the year 2015’s.
Many flat owners who decided to sell their HDB flats with a desire to upgrade the private housing are now willing to buy the finished resale properties as it may help them to move to the new homes as soon as the sale for the public flats is closed. The senior vice president and director of OrangeTee and Tie company, Christine Sun recently said in an interview that the private resale market may grow further by this year. This growth will be mainly influenced by the low mortgage rates, possible economic recovery, and the tight supply of well-designed new homes in the market.
The recent studies and expert analysis also revealed that instead of leaving any negative impact on the market, Covid-19 is likely to boost the sales volume in the real estate market. Furthermore, the resale market is expected to extend help to the growth of the new home sale sector as well by a considerable level.
Although the demands for resale homes are increasing, they will be the best choice for buyers with a tighter budget in near future.
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