With the recent COVID-19 virus situations, has the local real estate market been affected, and if so, how?
Property rents rose while leasing volume fell
HDB in 40 Cambridge Road, Singapore. Picture: iProperty
The number of tourists and mid- to long-term occupants to Singapore fell considerably since the virus outbreak. The number of foreigners returning or entering the country has been significantly restricted since late last month and with these temporary, though hopefully not prolonged regulations, in place, how has the local property market reacted or been affected?
Last month’s rental volume fell for the 6th consecutive month though both private and HDB rental prices have risen slightly. This may be due to the lack of newly completed private homes in 2019 while many other private properties that were sold en bloc in the previous years have since been demolished. Rents also rose last month and that may have attributed to the reduced leasing volume as well.
The decline in demand for rental properties
Typically, the Lunar New Year period is a lull for both the sales and rental market. In particular, there the number of properties leased during this time has fallen as both landlords and tenants are away for the holidays. Although the decline in rental volume is not significant yet as the decline in supply superseded the decline in demand, analysts are expecting the decline to continue into the next months if the coronavirus restrictions remain in place.
