In general, CBRE expects Singapore’s property market to stay resilient despite macroeconomic headwinds. This is emphasized in CBRE’s report”Real Estate Market Outlook 2020 – Singapore”, that provides projections to the property businesses of home, office, retail, logistics, and the capital markets.
New earnings dominated the personal residential market with 9,912 private residential units offered. It symbolized a 12.7percent y-o-y growth, signalling improving buyer opinion despite land cooling steps.
There are 40 jobs scheduled for launching and an extra unsold stock of 30,473 units in 2020. Therefore, CBRE foresees that 2020 is going to be a buyer’s market and property purchasers will soon be spoilt for choice. But, jobs from the Core Central Region (CCR) will still continue to have large need, which makes up close to 40 percent of units available for launch in the year.
Chinese buyers are not likely to feature in the brief term as a result of Covid-19 outbreak, but are expected to come back in the middle to long term.
Concerning property costs, there aren’t any substantial pressures to reduce costs or give discounts because the degree of unsold inventory remains manageable. Additionally, the majority of the jobs with added purchaser’s postage responsibility deadline in 2020 have their units 100% marketed or near completely sold.
CBRE Research expects prices to stabilise and might reach between 0% and 1% increase in 2020 because of high land prices.
For this calendar year, CBRE jobs the cost quantum of $2.0 million each unit will last to be the sweet spot for investors. Residential property buyers are most likely to be price-sensitive, preferring smaller components. Since it is, the median size for components transacted has dropped from 828 sq feet in 2017 into 721 sq feet in 2019.
Regardless of the virus epidemic, developers are moving forward with new releases while taking precautionary steps at showflats.
Low interest rates will fuel and preserve the inherent demand from both foreign and local investors.
CBRE Research anticipates new home sales to fall inside the selection of 7,000 to 8,000 units and resale quantity to fall inside the assortment of 6,000 to 7,000 units.