{"id":117448,"date":"2020-06-30T12:58:31","date_gmt":"2020-06-30T05:58:31","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/propnex-positive-of-private-home-markets-long-term-outlook\/"},"modified":"2020-06-30T13:03:27","modified_gmt":"2020-06-30T06:03:27","slug":"propnex-positive-of-private-home-markets-long-term-outlook","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/propnex-positive-of-private-home-markets-long-term-outlook\/","title":{"rendered":"PropNex positive of private home market\u2019s long-term outlook"},"content":{"rendered":"


\nThe real estate firm noted that the month-on-month rebound in new home sales in May and the return of homebuyers to acquire units during Phase 2 of the circuit breaker is \u201ca potential sign of underlying demand, particularly for strategically-priced units\u201d.
\nReal estate firm PropNex expects homebuyers \u2013 especially those more confident of job security or have built up enough savings for investment \u2013 to return to the market as concerns surrounding the COVID-19 pandemic ebb over time.
\nPropNex Research data showed that after a positive Q1 2020 (where there were 4,269 units sold, excluding executive condominiums (ECs)), the circuit breaker measures in April disrupted property activities and slowed the growth momentum in April and May.\u00a0Total private home sales slumped in April and May at 647 and 660 units, respectively.
\nOut of the 647 units sold in April, 277 units were sold in the primary market and 370 units were resales. Despite being affected by the circuit breaker measures for the entire month, new home sales soared 75% month-on-month to 486 units in May, while the resale market plunged 53% to 174 units.
\nPropNex CEO Ismail Gafoor said the inability for buyers to view units during the circuit breaker affected the resale market as buyers prefer to personally examine the property first before transacting.
\n\u201cIn contrast, it was observed that buyers of new homes became more comfortable with digital viewings and transacting online from April to May, with attractively priced projects and low interest rates likely nudging them to make a purchase.\u201d
\nWhile PropNex expects the cautious sentiment and tepid growth to weigh on prices and home buying interest, it noted that May\u2019s month-on-month rebound in new home sales and the return of homebuyers to acquire units during Singapore\u2019s Phase 2 of the circuit breaker is \u201ca potential sign of underlying demand, particularly for strategically-priced units\u201d.
\nThe real estate agency noted that a bigger proportion of homes were transacted within the price quantum brackets of below $2 million.
\nIn fact, 95% of new homes sold in May were valued at $2 million and below, or the highest proportion of monthly sales in the first five months of 2020. It stood at 89% in April, 90% in March and 92% and 73% in February and January respectively.
\nPropNex attributed the trend to \u201ca combination of factors, including the sale of a higher number of smaller units and selective discounts offered by developers\u201d.
\n\u201cThese categories of homes \u2013 mass market and mid-tier \u2013 should continue to drive demand with support from upgraders\/owner-occupiers,\u201d it said.
\nRealis data showed that the median transacted price for non-landed residential properties fell from $1.4 million in January to $1.2 million in May, possibly indicating a hike in demand for more affordable homes.
\nIn regards to property size, homes measuring below 800 sq ft proved popular among investors and buyers. Residential units spanning 500 to 800 sq ft accounted for 62% of total sales in April and 54% in May.
\nRead also:\u00a0Private Home Sales Up 75.5% in May 2020\u2014See The Top 5 Condos Sold Here
\nThis could be due to some investors buying smaller units and buyers remaining very price sensitive, acquiring smaller units to keep overall quantum affordable.
\nBarring a resurgence of COVID-19 cases as well as widespread job losses, PropNex expects this year\u2019s private residential sales to stand at 14,500 to 15,500 units, including 8,000 to 8,500 new homes and ECs.
\nHowever, it does not see a sharp decline in prices considering the holding power of developers and that Singapore households are not generally overleveraged for property acquisition.
\nThe real estate agency forecasts private home prices to drop by up to 3% this year.
\n\u201cThe long-term outlook for the Singapore residential property market remains positive, as factors that support the housing market \u2013 including pro-business policies, safety, and the stable political environment \u2013 remain intact. A look back in history paints a resilient picture of the residential market, which has recovered after each crisis with prices generally keeping pace with economic growth,\u201d said Wong Siew Ying, Head of Research and Content at PropNex.
\n\u00a0
\nLooking for a property in Singapore? Visit\u00a0PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…PropNex positive of private home market\u2019s long-term outlook<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The real estate firm noted that the month-on-month rebound in new home sales in May...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-117448","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-uyk","jetpack-related-posts":[{"id":60360,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/80-of-dwg-agents-crossed-over-to-propnex\/","url_meta":{"origin":117448,"position":0},"title":"80% of DWG agents crossed over to PropNex","date":"July 11, 2017","format":false,"excerpt":"\r PropNex Realty is officially the largest real estate agency with 6,688 salespersons. (Photo: Jianwei Huang) Some 845 out of the 1,063 property agents (80 percent) from Dennis Wee Group (DWG) have signed an agreement to cross over to PropNex Realty following a merger announcement in June. This means that\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":120587,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/more-buyers-looking-for-bigger-homes-since-end-of-circuit-breaker\/","url_meta":{"origin":117448,"position":1},"title":"More buyers looking for bigger homes since end of circuit breaker","date":"June 29, 2021","format":false,"excerpt":"\r In 2020, the number of resold executive HDB units\u00a0increased by 12.8% year-on-year to 1,882 units and the number of resold five-room flats\u00a0climbed 10.3% year-on-year to 5,984. Since the end of the circuit breaker in June last year, Singapore witnessed an increased demand for larger homes, especially for older Housing\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/06\/Colour-Scheme-HDB-e1479092279776.original.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":8190,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/propnex-bucks-trend-with-200m-in-commissions\/","url_meta":{"origin":117448,"position":2},"title":"PropNex bucks trend with $200m in commissions","date":"March 9, 2016","format":false,"excerpt":"\r Mohamed Ismail, CEO of PropNex Realty. (Photo: PropNex) Despite Singapore\u2019s sluggish property market, PropNex Realty saw gross commissions soar to a record high of $200 million in 2015, while transaction volume surpassed 40,000 for the first time. 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