SINGAPORE: Private home sales are expected to remain resilient in 2020, Real Estate Developers’ Association of Singapore (REDAS) President Chia Ngiang Hong said on Friday (Jan 31).
Speaking at the the association's spring festival lunch, he said there could be more than 30 projects with 9,000 new units launched for sale this year. Half of the new projects are expected to be located in the core central region.
Demand for private homes from Housing and Development Board (HDB) upgraders are also expected to remain steady with more flats reaching their Minimum Occupancy Period, said Mr Chia.
About 26,100 flats will reach Minimum Occupation Period – 50 per cent higher than the average over the past five years. Higher income ceilings and improved subsidies for HDB buyers will also increase liquidity in the HDB market, Mr Chia said.
Despite the strong headwinds and cooling measures in place, Mr Chia said 2019 was a “resilient” year for the property market.
The private residential market launched 52 new projects in 2019 – excluding executive condominiums – with 17,000 units for sale.
Sales of new private homes totaled 9,912 units in 2019, 12.7 per cent higher than the number sold in 2018. Prices also grew more sustainably at 2.7 per cent compared to 7.9 per cent in 2018.
Prices of new homes are not expected to change much this year, he said. “The private residential market seems to be stabilising in line with economic fundamentals.”
But he added that sales performance across different projects and segments are expected to be “uneven”, with developers concerned over oncoming supply and build-up of unsold inventory.
“We are reassured that the Government is monitoring the real estate market closely and will act where and when needed to maintain a stable and sustainable property market,” he said.
Minister for National Development Lawrence Wong – who was also at the lunch – addressed the potential impact of the Wuhan virus on the economy.
“There will be impact, let’s be very clear about that … we are already seeing it,” he said.
While specific sectors such as hospitality, tourism, retail and F&B will “bear the brunt of it”, Mr Wong said that the Government was monitoring the situation very closely.
“Even while we’re doing all we can to take precautions to guard against the spread of the virus, and continuing to monitor the situation, we are studying how best to support these affected sectors and to also provide support for the overall economy,” he said.