Singapore property agents expect to benefit from relaxed Covid restrictions

SINGAPORE property agents are optimistic about the effects of relaxed Covid-19 measures.

The Multi-Ministry Taskforce (MTF) announced on Thursday that social gathering group sizes will increase from two to five persons during Phase 3 (Heightened Alert), effective June 14.

In addition, occupancy limits of shopping malls and show galleries will be increased to one person per 10 square metres (sq m) of gross floor area, up from the current one person per 16 sq m.

This brings the occupancy rule back to pre-Phase 2 (Heightened Alert) levels. However it is still stricter than the one person per eight sq m limit implemented when Singapore first entered Phase 3 on Dec 28 last year.

Steven Tan, chief executive officer (CEO) of OrangeTee & Tie, said the increased group size will be "significantly helpful" to sales. (see clarification note)

He noted that the current group size of two means that an agent can take only one client to a viewing each time. This affects many buyers, especially couples, who often like to visit the sites together.

"With the relaxation of the policy, they can even bring a child or parent, and they can make decisions on the spot," said Mr Tan.

Propnex's CEO Ismail Gafoor added that the shift will give buyers confidence.

He noted that during Phase 2 (Heightened Alert), some homeowners did not want clients to view their resale flats because they were worried about rising community cases.

That being said, he expects the current sentiments to be reflected only in July's figures, as the first half of June will still be under tighter controls.

"I definitely think sales will pick up. June figures will be comparable to May, but July will be a better reflection of market confidence," he said.

Mr Tan also added the current restrictions have created "pent-up demand" and expects to see more buyers wanting to view flats in the coming weeks.

But customers are not the only ones with a backlogged agenda.

ERA CEO Jack Chua is expecting more developers to begin their launches in June or July.

"Some of the projects were ready, but the developers decided to put them on hold after additional restrictions were introduced last month," said Mr Chua.

One of the launches ERA is expecting soon is The Watergardens, a condominium located at Canberra Drive by developers UOL and Kheng Leong.

Clarification note: OrangeTee & Tie has clarified that Steven Tan is CEO of the company, not its managing director.