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Impact of Covid-19 Virus on Singapore Properties For Sale
Coronavirus on Singapore Properties is a popular subject of talk. Covid-19 has delivered a new detail of vulnerability to a fire of macroeconomic uncertainty and elevated dangers, with the official forecast of one percentage point downgrade of Singapore GDP for 2020.
This flare-up will have an adversary effect on the real estate industry of Singapore, particularly on the residential property market, including consequences of the value chain, construction and soundness of property investment.
With Singapore top-notch health system, coupled with draconian tracking and regulation measures, there is less fear. In fact, it is so successful that Singapore is becoming a litmus test on whether Covid-19 can be contained and neutralised. As of 1 March 2020, the total number of cases is 106 and the total number of recovered cases is standing prominently at 74.
No Plan To Tweak Property Cooling Measures
On 19 February 2020, DPM Heng Swee Kent indicated to Bloomberg TV that the Government does not intend to make any changes to the current property cooling measures. Their focus was to stabilise the economy and addressing long term structural matters.
Tweaking of Cooling Measures Requested
Some property developers requesting for the requiring augmentation of the Additional Buyer Stamp Duty (ABSD) five-year time frame, in particular for huge developments with over 500 units. They are required to build and sell all of their units to obtain a remission of the 25 per cent ABSD within five years. One suggestion is to have a staggered or pro-rated system to broaden the life span of the units without squeezing the prices too much.
For buyers, the request is made to roll back the ABSD scheme to 2013 level. Currently, ABSD is charged 12% for Singaporean\'s second property and 15% for subsequent properties which are implemented since July 2018. Foreigners are charged 20% from first property purchase.
Travel Restrictions and Dearth of Chinese Buyers And Labour
Looking at 2019 statistics, non-PR China buyers 359 residential units of which 141 units are at the Core Central Region (CCR). With the lockdown of China major cities and a ban of travellers who visited China recently, this would have left an hole for the CCR market.
Impact on Property Construction
There is a double whammy that the construction industry is facing. The first is on labour shortage particularly on workers from China who are facing the ban and/or quarantine restrictions.
The second is on the global supply chain with many factories in China remaining shut or with reduced capacity. In Singapore, Pre-fabricated Pre-finished Volumetric Construction (PPVC) is mandated for many Government Land Sales sites. That is, all components must be assembled off-site before they can be delivered to the development site, including doors, tiles, sanitary wares, etc. Construction cannot proceed even if there is one item missing,
Delay in Few New Launches
Developers are watching the property market very closely and the determination of when to preview and launch new developments become tricky.
Some new launches that were delayed include:
- Grange 1866 - Redevelopment of former iLiv@Grange by a group of investors
- Cairnhill 16 By TSky Development
The majority are going ahead
The M
The brightest star of new launches was The M by Wing Tai Asia who sold around 70% of their 522-unit Condo at Middle Road from 22 to 23 February 2020. It attracted over 2,000 people during its public preview amid the Covid-19 outbreak. As of 1 March, an estimate of 75% was sold.
At MIddle Road
The M
Developer: Wingcharm Investment Pte Ltd (Part of Wing Tai Asia)
- Fairly underpriced compared to District 1, 2 and 7 new launches
- Innovative design concepts - living areas converting to workspaces
- Close to office hubs, shopping malls and medical facilities in CBD
- Hottest launch bucking cautious sentiment from Covid-19
- High rentability
READ MORE at Microsite...
Available Types
Limited
- 1 Bedrooms
- 2 Bedrooms
- 3 Bedrooms
Prices in PSF (Per Square Foot)
From $2,4xx
Verticus (via Private Sale)
Over at Baliester, a Freehold property, Veritcus had a private sale during end February. Units are available for sale at near breakeven prices. It is the last project in Balestier not to be affected by the '100 sqm rule' so buyers will have to pay more in the future to buy into Balestier.
Available Types
- 1 Bedroom
- 2 Bedrooms
- 3 Bedrooms
- 4 Bedrooms
Prices in PSF (Per Square Foot)
From $1,9xx
OLA
At Sengkang, a Branded Executive Condominium (EC), OLA, opened for preview with e-apps closing on 1 March. Quota reopens on 15 March 2020 and showflat reopens on 6 March 2020.
At Sengkang
OLA
Developer: Anchorvale Pte Ltd (Joint Venture of Evia Real Estate and Gamuda Group)
- Singapore's 1st Branded Executive Condo
- Lladró (Spanish) Inspired Living
- Telemedicine Hi-Doc facilities - 1st ever in ECs
- Motorized balcony blinds - 1st ever in ECs
- Comprehensive kitchen storage fittings in cabinets - 1st ever in ECs
READ MORE at Microsite...
Available Types
- 2 Bedrooms
- 3 Bedrooms
- 4 Bedrooms
- 5 Bedroom Penthouse
Prices in PSF (Per Square Foot)
Between $1,08x to $1,1xx
KOPAR @ NEWTON
This exciting new launch in District 9 at Newton will be the next to watch out for. KOPAR AT NEWTON, by CEL Development with land size of over 125,000 sqft. This could be another Blockbuster in District 9. The preview is tentatively planned for 28 March 2020 (to be confirmed).
At Newton
Kopar At Newton
Developer: CEL Development
- Only 378 units of 1-5 Bedrooms
- Well-connected to major Expressways CTE + North-South Corridor
- 300 metres to Newton MRT Station (NS line and Downtown line)
- Within 1 km to Primary Schools (ACS Junior, ACS Primary and SJI)
- Competitive Land Cost at $1192 psf ppr
READ MORE at Microsite...
Available Types
- 1 Bedroom
- 2 Bedrooms
- 3 Bedrooms
- 4 Bedrooms
- 5 Bedrooms
Prices in PSF (Per Square Foot)
Awaiting Info from Developer
PRICES NOT LIKELY TO FALL SUBSTANTIALLY
The residential property costs in Singapore have been genuinely steady, with a 2.7 per cent increase in 2019.
Several investors would turn to safe-haven assets to protect themselves in uncertain markets, shifting from securities, bonds and equities to properties in Singapore.
LET'S CHAT
If you are keen to extend or build your Property Portfolio, please do not hesitate to contact us. We watch the market very closely and would be happy to share with you real facts and figures on what, when, where to buy and when to exit after sorting your financial potential.
Disclaimer:
The information contained on this page is for informational purposes only. It does not constitute legal, investment or other professional advice. Although the information on the website has been provided from reliable sources, we do not provide any warranty, expressed or implied, that the accuracy or completeness of any information provided.
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