OrangeTee informed that the long-term prospects of the Singapore property market will still continue to be effective and positive. Even though during the COVID-19 pandemic, the key fundamentals of the city-state will remain intact. For instance, it relies on political stability, healthcare standards, excellent education, and its pro-business environment. Across the globe, it may except to continue attracting the realtors and investors on the safe-haven status. Singapore housing market will enhance its process within the system by circulating the ample liquidity. OrangeTee informed that they counteract accordingly to the disruptions or interruptions caused by the COVID-19 pandemic.
The Central banks and governments across the globe will enact stimulus packages and comprehensive fiscal programs. Moreover, the capital’s huge influx within the massive easing programs will flow offshore to the real estate markets and financial systems globally. In recent months, the hunting for properties had flushed the buyers with cash and cheaper borrowing costs. Along with numerous transactions, the property market will roar back to its life within the circuit period in June. EC (Executive Condominiums) could soar the property market from 2,664 units in Q2 2020 with 164.5% enhancement in Q3 2020 (7,047 units).
OrangeTee informed that Phase 3 reopening will expect buyers to inform on entering into the city-state and growing vaccine optimism. In 2021, the property market is expected to rise its overall home or Normanton Park price from 1% up to a maximum of 4%. Private homes within the range of 19,200 units up to 21,200 units could change hands and increase the numbers. Buyers can expect that the new project launchers or developers will launch their project in the first half of 2021.
For the past few years, most of the mega projects had already planned to launch their new projects. Aggressive land deals were outbreak during the project launch starting from 2017 to 2018. OrangeTee informed that from next year, it is expected to taper and nearly reach its peak. Some of the blockbuster launches for the next year are as follows:
- Irwell Bank Road Site
- Midtown Modern
- Klimt Cairnhill Project (previously known as Cairnhill Mansions)
- Former Liang Court
- Normanton Park
- Park Nova Luxury projects (previously known as Park House)
Mass market projects including the government land projects or sites are set to launch at Canberra, Paris Ris, and Fernvale. OrangeTee informed that the prices may not fall in 2021 due to the effective economic outlook in response to the market sentiment.
Some projects or sites will continue to experience or face some impact due to the OTP (Option to Purchase) re-issuing. A few others will experience healthy demand with the help of supplying favorable or choice sites. Excluding ECs, the prices of some new homes will increase at a faster pace ranging from 2% up to a maximum of 5%. It is expected that they can easily be sold 9,000 units or 10,000 units without any hassle.
Property Market Demand
Resale homes will forecast demand with a moderate increase of 5% in 2021 for about 10,000 units to 11,000 units. This year, the prices may hike from 1% up to a maximum of 4%. In 2020, a stellar performance was posted by the most popular HDB resale market. Even though with the rising supply of flats and COVID-19 pandemic, they increase the prices by 1.5% each quarter (Q3 2020). The resale market will divert some demand with its recent BTO launches. OrangeTee informed the same and believes the completion for a long waiting period.
It is expected that the November BTO completion period launch will be longer. Within the upcoming months, the resale market is likely to turn with immediate housing requirements by the couples. Some families may switch over to HDB flats due to the macroeconomic uncertainties and the weak employment market. You can expect that the resale volume will hike from 3% (24,000 housing units) up to a maximum of 5% (26,000 housing units). OrangeTee informed that the resale flats pricing may increase from 2% to 5% depending on the higher demands.