While the authorities of the circuit breaker steps disrupted real estate actions from Q2 2020, Knight Frank considers the innovative easing of the constraints and resumption of economic activities will give rise to a pickup in sales activity for the remainder of 2020.
In reality, Knight Frank anticipates that year’s brand new sales volumes to reach around 6,000 to 7,000 units.
However, with recessionary pressures impacting all sectors of the market, the real estate consultancy company anticipates the Urban Redevelopment Authority’s (URA) non-landed cost index to fall from around 5% annually, based on the magnitude of economic contraction.
URA flash estimates revealed that the Real Estate Price Index (PPI) for non-landed private houses fell 0.6% quarter-on-quarter from Q2 2020 into 147.2, carrying the decrease for the first half of this year to 1.6%.
The quarter saw 2,253 trades for non-landed personal houses, excluding executive condos (ECs), regardless of the closing of showflats and limitations on bodily viewings for many of Q2.
Knight Frank noted that although trade volumes dropped 40.5% in the last quarter, the earnings action signaled that”a few buyers had accommodated into these unprecedented states”.
Of the 2,253 trades posted in Q2, approximately 70.6% or 1,591 were fresh sale trades, although the remaining 662 were secondary purchase trades.
“New selling action was down in April as soon as the circuit breaker steps kicked-in, documenting 261 earnings of non-landed private houses (excluding ECs).
It demonstrated that non-landed private dwelling prices inside the Core Central Region (CCR) dropped 0.1% quarter-on-quarter in Q2, an addition in the 2.2% quarter-on-quarter decrease published in Q1.
CCR saw non-landed trade volumes, excluding ECs, drop 60.4% quarter-on-quarter into 381 units in Q2, after steadily rising during the previous two quarters.
Projects that started available in Q2 at CCR were restricted, such as 15 Holland Hill and Kopar in Newton.
Opened available before the circuit breaker constraints kicked , Kopar in Newton enrolled 116 trades with average unit cost at $2,275 per sq ft (psf), which makes it the maximum volume during the quarter. The project listed 71 trades from 4 to 6 April alone before the compulsory closure of earnings galleries.
“While total non-landed trade volume (excluding EC) dipped, fresh sale action sustained with 773 trades listed,” explained Knight Frank.
“New earnings were boosted by developer discounts in jobs like Treasure at Tampines and Parc Clematis, together with both registering over 150 units this past year.”
It added that a Hillion homes unit has been transacted for about $ 2.7 million or $1,032 psf, also had the maximum value in the OCR at Q2.
Meanwhile, the remainder of the Central Region (RCR) listed the sharpest fall in costs in Q2, using the PPI for non-landed private houses falling 1.9% quarter-on-quarter into 149.7.
RCR saw trade volumes for non-landed personal houses, excluding ECs, drop 33.7% quarter-on-quarter into 795 units in Q2. Of them, 77.7% were fresh sale transactions.
“Despite the dearth of new job launches, developments which were formerly launched continued to market, encouraging chief sale volumes.
It noticed that Meyer Mansion submitted the maximum trade value in the RCR throughout the quarter, using a unit sold in nearly $5.2 million or $2,475 psf.