SINGAPORE – The private resale residential market noticed prices in May 2021 inch up 0.9% to a new high, even though the figures of condominium units resold dived by 11.4% as tightened Covid-19 curbs limit property viewings.

The restrictions on group numbers, which is in place till 13th June 2021, has caused a slight drag on resale volume, with 1,722 units transacting last month, as compared with 1,944 units in April 2021, based on flash data from property portal SRX that was announced on Tuesday (June 8).

But the sales decline was not as serious compared with the circuit breaker time frame last year when volume nosedived 57.6% from 747 units in March 2020 to 317 units in April 2020, stated Ms Christine Sun, the senior vice-president of research and analytics at property firm OrangeTee & Tie.

Miss Sun said last month’s sales drop was mitigated by agents and purchasers becoming more used to remote viewings. Also, some purchasers probably seen the units before restrictions started and were able to go ahead with their home purchases, she stated.

Volumes in the earlier month were up strongly by 811% from the 189 units transacted in May 2020, when the circuit breaker was in place.

It is also 86.6% more than the 5-year average volume for the month of May.

Head of research and content at PropNex , Miss Wong Siew Ying, commented that while virtual tours have assisted to some extent, they may not necessarily provide the same experience of seeing a unit in person.

“As many purchasers of resale properties get the unit as their own abode, they still prefer to see the property personally to get a vibe of the area and a feel of the living environment,” she commented.

In spite of viewing limitations, May 2021 rates remained strong and went up by 6.9% year on year.

Miss Sun of Orange Tee said: “Many sellers likely saw the movement restrictions as short-term and are predicting demand to gain upward momentum after the heightened alert time frame. Thus some sellers may not feel a need to tweak their prices currently.”

Head of research and consultancy at ERA Realty, Mr Nicholas Mak, said the private housing sales volume in the primary and secondary market is probably going to bounce back after measures are lifted on June 13. This is going to contibute to healthy sales when Grand Dunman launches later in the year.

“The larger transaction volume would also hold up the continual rise in residential property prices, unless the authorities were to intervene with yet another round of cooling curbs,” said Mr Mak.

Prices of resale condominium units in the city fringe region spiked by 1.8%, the fastest among the 3 property zones. Those outside the central region inched up by 0.8%, while prices in Singapore’s central regions dipped by 0.7%.

The highest transacted rate for a private resale housing unit in May was $13.3 million at The Marq on Paterson Hill in Orchard Road, based on latest SRX data.

In the rest of core region, a unit at Reflections at Keppel Bay brought in the highest price of $5.7 million, whilst the top spot in the outside of central region went to a $3.5 million unit at St Patrick’s Residences in Marine Parade.

https://www.straitstimes.com/business/property/property-market-not-overheated-but-authorities-watching-prices-closely-mas