Resale prices and sales of non-landed private houses nudged upward in January, as analysts said any fallout in the coronavirus outbreak will just hit on the land market from this month onwards.
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This is probably as a result of market lull period throughout the Lunar New Year season. Obviously, the sales volume in January was 15.9 percent greater than for the same month last year and and 13.4 above the five-year average quantity for January.
Regardless of the effects of this Lunar New Year, resale prices were nonetheless on a small upward tendency, ERA Realty head of research and consultancy Nicholas Mak observed. They grew up 2.3 percent year on year in January, after increasing by 1.7 percent for the whole of 2019.
Mr Mak said the private resale market was largely not affected from the coronavirus outbreak in January, and he foresees any impact will probably start to be felt this season, together with transaction volume more adversely affected than prices.
He said:”Potential homebuyers may avoid seeing resale properties for fear of coming in contact with all the coronavirus. Property sellers may be reluctant to open their houses for strangers to look at the properties as they are concerned that there’s a chance that one or more of those buyers might be a carrier of this virus.
“As a consequence the resale amount from the first quater of 2020 could fall by as much as 25 to 35 percent quarter on quarter.”
Property prices on the other hand, could be resilient.
“Property owners that are not in a rush to dispose of the real estate could withstand lowering their asking prices, especially if they are convinced that this virus outbreak, such as all other preceding outbreaks, could eventually pass,” said Mr Mak.
“Presently, there’s absolutely no major impact on the property market as it isn’t one of those industries that are directly affected by the coronavirus, including tourism, retail, food & beverage and MICE,” she said. MICE describes meetings, incentives, conferences and exhibitions.
She noticed also the concerted effort by authorities around the globe to contain the virus, together with many nations now more prepared to deal with the outbreak, given their expertise and hindsight from Sars.
SRX’s data also demonstrate the greatest transacted price for a resale unit in January was $18.2 million to get a apartment at Le Nouvel Ardmore at Ardmore Park in prime area 10. At town fringes, a unit at Camelot By-The-Water at Tanjong Rhu travelled for $6.6 million, while in the suburbs, a unit at Waterfront Key at Bedok Reservoir resold for about $ 3.2 million.