Updated: Nov 18, 2020
Today we discuss and take a look back at the property market of 2019, a fulfilling year and whats to come in 2020.
In 2019, developers have sold 29 percent more private homes in the second half of the year as compared to the first half of 2019. (Source: BusinessTimes)
2020 is forecasted to remain unchanged (or maybe worse as compared to 2019), due to uncertainties revolving around the announcement of Brexit, along with the US-China trade wars and recent Covid-19 also took an impact on many sectors. This affects the global economy thus causing the economy in Singapore to slow down.
However, when it comes to the private property scene, there are a few factors affecting it. One of the factors that will affect the scene is the increased interest in luxury properties by foreign investors. Luxury properties are units which are priced S$10million and above. Buying a property in Singapore is attractive to many foreign investors as it as considered to be a safe asset. This is especially so for Chinese investors who are looking to counter the effects of the US-China trade war.
Next, with the announcement of a projected 16,000 BTO flats in 2020 and the Enhanced Housing Grand (EHG), the market foresees an increase in the number of buyers next year. Along with that, within the next 2 years, more resale flats are expected to meet their Minimum Occupation Period (MOP), resulting in a potential increase in the number of HDB upgraders as well as flats that are fully rented out. With more resale flats in the market, and the announcement of generous housing grants by the government, 2020 sees a rise in the number of buyers.
Collective sales for next year on the other hand are not looking optimistic as developers would be more focused on the large supply of units to clear. This is due to the 5 year Additional Buyer Stamp Duty (ABSD) time limit for developers to build and sell everything.
All in all, for Singapore's residential property market to remain stable in the upcoming year, buyer's pace needs to be maintained. With that, Singapore being a safe, stable and transparent country will remain a key location for investors looking to invest in the real estate market.
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