The Singapore property market has been unexpectedly resilient, throughout the circuit breaker and beyond. It's likely that a combination of low home loan rates, plus a certain trust in real estate as a safe haven investment, will help to maintain the course going into 2021.
However, any huge surge in property prices seems unlikely, as investors are still quite cautious. In fact, we think a reason for the recent spike in the HDB resale market is some buyers tempering their aspirations, and getting a resale unit instead of a condo.
Landlords will face challenges in 2021 and beyond, as the Singapore rental market is dependent on foreign influx. The current worry would be the impact of a Covid-19 downturn, and the possible cost-cutting measures to follow (which often includes less generous housing allowances / expat packages).
On the resale flat front, there are a record number of flats reaching their MOP in 2020 to 2021 (around 50,000). That means more resale flats able to be fully rented out, so again that could mean more competition for landlords.
Besides this, we're seeing a growing trend toward the market accepting higher prices per square foot, but going for a lower quantum. A good example might be The M, which had units starting for under $1 million and sold fast despite a high price psf.
Lease decay is an issue that's been on the national consciousness of late, and this will of course increase going forward. By coincidence of design, this will help move a likely slew of newer, five-year old flats coming onto the resale market.
The Singapore property market has been unexpectedly resilient, throughout the circuit breaker and beyond. It's likely that a combination of low home loan rates, plus a certain trust in real estate as a safe haven investment, will help to maintain the course going into 2021.
However, any huge surge in property prices seems unlikely, as investors are still quite cautious. In fact, we think a reason for the recent spike in the HDB resale market is some buyers tempering their aspirations, and getting a resale unit instead of a condo.
Landlords will face challenges in 2021 and beyond, as the Singapore rental market is dependent on foreign influx. The current worry would be the impact of a Covid-19 downturn, and the possible cost-cutting measures to follow (which often includes less generous housing allowances / expat packages).
On the resale flat front, there are a record number of flats reaching their MOP in 2020 to 2021 (around 50,000). That means more resale flats able to be fully rented out, so again that could mean more competition for landlords.
Besides this, we're seeing a growing trend toward the market accepting higher prices per square foot, but going for a lower quantum. A good example might be The M, which had units starting for under $1 million and sold fast despite a high price psf.
Lease decay is an issue that's been on the national consciousness of late, and this will of course increase going forward. By coincidence of design, this will help move a likely slew of newer, five-year old flats coming onto the resale market.