Virus' impact on new home sales expected to be short-term; demand could pick up in H2

Singapore

AFTER the year-end holiday season, developers posted their best January private home sales figure in seven years.

Given the ongoing Covid-19 outbreak and the hit it will have on the economy, many developers are fearful of the impact on the volume of new private home sales - and on their pricing power.

Property consultants expect some short-term impact on sales volume, but most seem sanguine that underlying demand for new private homes will remain healthy.

In fact, quite a few, including JLL's senior director of research and consultancy, Ong Teck Hui, are predicting the possibility of a resurgence in buying activity from pent-up demand when the threat of Covid-19 abates.

"While there could be some moderation to the volume of transactions in the short term, an immediate negative impact on prices is not expected, as sellers are generally not under pressure and able to …