You've successfully copied this link.
Juwai IQI Singapore property survey & Index Q2 2020
By Juwai, 23 June 2020
This is the first Residential Property Index on Singapore conducted by Juwai IQI via an online survey, carried out between 11 and 17 May 2020. This index tracks the evolution of market activity and sentiments in Singapore’s real estate sector.
SOME HIGHLIGHTS OF THE SURVEY:
48% percent of real estate industry respondents to the survey approve of the Singapore government’s handling of the pandemic.
Agents expect both residential rents and prices to fall this year before partially recovering in 2021.
Foreign buyers account for 19% of new project sales and of sub-sale transactions, according to agents.
48% cent of agents expect foreign buyers to complete more transactions than local buyers in 2020.
When surveyed on the effectiveness of marketing strategies for reaching international buyers, agents ranked online advertising, social media, and all forms of virtual or video tours as the most effective.
SINGAPORE AND THE CORONAVIRUS
The real estate industry has a positive view of the Singapore government’s handling of the Coronavirus pandemic while ranking the United States as having the worst response to the crisis, followed by the United Kingdom, Indonesia, Malaysia and Japan, as the five countries which are lacking in their handling of the pandemic.
According to Juwai IQI Executive Chairman Georg Chmiel, “Even with the outbreak among migrant worker dormitories, Singapore has done well at managing the crisis. By contrast, agents feel that the United States, the United Kingdom and Indonesia have done poorly.
“Singapore agents rank Malaysia as the fourth worst country in its handling of the Coronavirus crisis, even though in Malaysia there have been only about 215 cases per million people, compared to more than 4,900 per million in Singapore.
PRICES AND RENTS FORECAST
Real estate agents expect prices to fall 2.6% over the next 12 months to April 2021 but expect prices to recover in the near future. By April 2022, agents believe residential prices will be 3.3% higher than they are today. Regarding rentals, agents are less optimistic, forecasting a 4.2% decline until April 2021. By April 2022, agents expect rents will still be down but by just 0.1%, compared to current levels.
“Singapore agents expect foreign buyer purchases to increase in the year to come because the country has handled the pandemic relatively well and prices, even with the modest expected decline should remain relatively stable when compared to similar markets,” said Chmiel.
MARKET SHARE BY BUYER TYPE
Local owner occupier buyers account for nearly half of all market transactions while local investors are the next biggest buyer segment, accounting for nearly 31.3% of new project sales and 32.5% of sub-sale transactions. Foreign buyers account for nearly one-fifth of buyers, including 19.1% of new project sales and 18.6% of sub-sale transactions.
EFFECTIVENESS OF MARKETING STRATEGIES
According to Chmiel, “One impact of the coronavirus related lockdown has been to shift much of real estate marketing
and even part of the sales process online.”
This is clearly illustrated in the survey, where online advertising performed best, with 41.7% of agents rating it either “extremely effective” or “very effective.” Social distancing standard operating procedures to mitigate the spread of Coronavirus have also rendered video tours, VR tours, 3D walkthroughs, webinars, live streaming, and online events as alternative marketing channels to engage customers with more than 25% of agents ranking them as effective marketing tools.
To get a full report of Juwai IQI SINGAPORE PROPERTY SURVEY & INDEX Q2 2020, download here.
For other country survey reports, click below:
Property Survey and Index Thailand Q1 2020
Property Survey and Index Malaysia Q1 2020
Loved this article? Sign up for free to get Juwai China Market updates!
SIGN UP NOW 马上注册