More buyers to look into resale market following 2.6% dip in private home sales

Analysts expect future sales to be affected by more HBD upgraders, and fewer fresh property launches.

Private home sales dipped by 2.6% month-on-month in April, with 1,262 units sold compared to the 1,296 sold in March.

This is the second time in a row home sales breached the 1,200 unit mark.

But the resale market may be more appetizing to buyers and investors in the coming months.

“Going forward, with expected construction delays, it is expected that genuine home buyers will turn to the resale market, thereby affecting new home sales numbers,” said CBRE Director of Research for Southeast Asia Catherine He.

She added that developers might delay launches to avoid the period of stricter safe management measures, which would limit group sizes for house viewings to two people instead of five. This two person limit includes the salesperson in the count.

Senior Vice President of Research and Analytics for OrangeTee Christine Sun said the technology is there to make up for these stricter measures.

“Technology infrastructure has been stepped up since Circuit Breaker measures were first imposed last year which may help mitigate some of the adverse impacts of the tightened measures... Therefore, the property sector seems to be more prepared to ensure business continuity than a year ago,” Sun said, adding that both buyers and agents have become more accustomed to digitalized services.

PropNex Head of Research and Content Wong Siew Ying said the interest in the resale market might boost private home sales as well.

“Home sales should continue to find support from Singapore investors and buyers, including HDB upgraders,as the strength of recovery in the HDB resale market may encourage some owners to take the opportunity to trade their flat for a private property,” Wong said.

PropNex expects new private home sales, excluding executive condominiums, to cross 10,000 units for the full year of 2021, barring unforseen events and new cooling measures.