Corona, as a pandemic, devastated the world for a year and is still counting. Needless to say, how hard it has hit the world, physically, psychologically, emotionally, socially, and also financially. There are countless cases in which the corona has shaken the very existence of mankind. At the same time, the world market suffered greatly from covid-19. An example of this calamity is the Singapore property market, which saw a historic decline during the breaker period in April and May.
Thankfully the vaccine is now out and has already created a glimmer of hope among the masses. In a similar way, the world market is also relying on the newfound hope of the victory of vaccines against Covid-19. This pandemic has somehow produced few new property trends that could entice buyers into lucrative investment opportunities. After much research, our experts have compiled a list of some key elements that can prove extremely useful if followed wisely. Read on to get a little glimpse into the likely development of the real estate market in 2021.
Optimistic recovery path
It may come as a surprise, but the real estate market in Singapore is a business that not only managed to weather the pandemic, but held it out throughout. Despite the terrible accident, there were positive sales for Landed, Private and Housing Boards. This, along with the potential for macroeconomic recovery, has got the ball rolling and hoped that housing demand and purchasing power will continue to pick up pace.
At the global level, some economies are expected to perform better than ever. In other words, the worst global deflation ever experienced by humans has somehow managed to get the best out of some economies. Many economists have also mentioned a branching recovery pattern followed by the industry, with some segments making a comeback faster than others. This can be further understood by the example that the top-notch professionals who work in high-profile facilities such as healthcare, software, fintech, technology, logistics, etc. perform much better than those who work in retail and brick-and-mortar- and hospitality, etc.
It is a fact that investing in real estate is a pretty lucrative way for the wealthy to deepen their money game. So far, the real estate market has been dominated mainly by the wealthy. This is especially true for residential properties, as they will undoubtedly produce more promising returns over a long period of time. According to a 2020 report by UBS / PwC Billionaires Insights, the collective opulence of billionaires rose by $ 2 trillion (S $ 2.66 trillion) to $ 10.3 trillion during the corona disaster. This led to a surge in sales of luxury homes and real estate, which itself explains what made the luxury real estate division a success even during the widespread epidemic.
A falling number of households can drive prices higher
In 2021, around 20 new developments are to be offered for sale in the first half of the year. This value is relatively lower than the 50 to 60 projects that started in both 2018 and 2019. Since most of the cream projects were initiated in the past few years, it is obvious that fewer mega-launches are to be expected in the market for 2021 and has also faded in the recent past. To exacerbate this decline, the government introduced the new cooling measures in July 2018, which consequently eased collective sales activities. Although the stock of unsold private homes may have piled up in the past year, developments in the macroeconomic aspect have increased the likelihood of a spike in property prices. If the statistics are to be believed, the financial value of private homes has increased by 2.2% in the last year.
Considering the latest collective sale circuit to release the final installment of new homes
Indeed, this would be the year to look out for some amazing starts. Few of these high profile product launches are Canninghill Square, Perfect Ten (the former City Towers), Cairnhill 16 (the former Cairnhill Heights), One Bernam, the former Liang Court, Park Nova (the former Park House), Midtown Modern, Klimt Cairnhill ( the former Cairnhill Mansions) and Irwell Hill Residences etc. Other notable product launches in the outskirts and in mass markets include One-North Eden, the Reef at King & # 39; s Dock and the executive condominiums Provence Residence and Parc Central Residences Ryse Residences and Phoenix Residences etc.
Streaming HDB market
Despite the blow caused by the pandemic and the multiplying housing supply, prices for HDB resale apartments rose 1.5%. It is believed that this happened after the government made changes to the policy related to the affordability and attractiveness of housing. Many resale homes have done deals with rates above the original valuation, especially in prominent locations. This even resulted in monthly resale volume exceeding 2,400 transactions for five consecutive months last year. The resale volume of HDB is expected to grow between 5% and 10% this year to around 22,000-25,000 servings. The value of resale apartments is also expected to increase by 2% to 4%.
Conclude
The real estate market in Singapore has been steadily recovering and has features of further price growth provided that our economy recovers strongly this year.
