Singapore’s love affair with property resumes amid coronavirus optimism

Property prices are expected to rise by 4 per cent next year as vaccines and an economic recovery help the city state put the worst of the pandemic behind it

Despite worst recession since independence, buyers’ confidence is already bouncing back. Even so, prudence is urged for households taking on debt

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Private residential buildings in Singapore. Photo: Roy Issa

Published: 9:30am, 21 Dec 2020Updated: 9:31am, 21 Dec 2020

Singapore may be undergoing its worst recession since independence, with retrenchments and job losses at record levels, but property-obsessed Singaporeans are still queuing up to buy multimillion-dollar homes.

While the coronavirus pandemic, which has killed more than 1.6 million people worldwide, had hit the pause button on ever-increasing price rises, analysts predict Singaporeans will resume their love affair with property as vaccines come on stream and the country moves into the third phase of its reopening later this month.

One big reason why prices had dipped were lockdown measures that prevented people from going to showrooms to view property launches, but experts now expect the market will rebound next year as Singapore continues to open up.

The country will move into phase three of its reopening – in which gatherings of up to eight people will be allowed, as opposed to the current limit of five – on December 28. Capacity restrictions for public areas including shopping malls, attractions, and places of worship will also be relaxed.

With the somewhat sunnier outlook in the Covid-19 situation, property prices were expected to rise by an average of about 4 per cent next year, said analysts.

Adding to the optimism are the roll-out of vaccines and a moderate economic recovery. Prime Minister Lee Hsien Loong revealed this week the city state would get its first batch of the Pfizer-BioNTech vaccine by the end of December and that it hoped to vaccinate all residents on a free but voluntary basis by the second half of 2021.

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Meanwhile, according to a Monetary Authority of Singapore (MAS) quarterly survey of 23 economists and analysts, Singapore is expected to log economic growth of about 5.5 per cent next year.