Singapore Home Sales Plunge to Near Six-Year Low Amid Lockdown

(Bloomberg) -- Home sales in Singapore fell to the lowest in almost six years in April after a partial lockdown imposed early that month brought the property market to a standstill.

The number of apartments sold slumped 58% to 277 last month, versus 660 units in March, according to Urban Redevelopment Authority data released Friday.

That’s the lowest since December 2014, when the private residential market was still reeling from new rounds of government property curbs that included higher levies for foreigners buying apartments as well as locals purchasing second homes.

Almost all transactions last month took place before Singapore imposed a partial lockdown on April 7, under which schools have been shut and 80% of workplaces closed, leaving only essential services running. Show flats have had to be closed and viewings postponed as people stay indoors.

With the lockdown extended until June 1 to arrest a surge in infections -- now over 25,000 largely due to an outbreak among migrant workers -- sales in May are expected to drop below 200 units.

The lengthened lockdown also threatens to push prices down further. Home values declined by 1% in the three months ended March 31, the steepest drop in more than three years.

To help developers ride out the disruptions, the government earlier this month extended the sale duration period for residential units, as well as the timeline for projects to be completed.

When the lockdown is eased in June, home buyers will return gradually rather than coming out in force, said Nicholas Mak, head of research at APAC Realty Ltd. unit ERA.

The government may revert to limiting public gatherings to a maximum of 10 people, so any proper recovery in sales should only be expected from July, he said.

“Buyers will also be more guarded because of the economic uncertainty, as some workers face the prospect of wage cuts and retrenchments,” Mak said.

©2020 Bloomberg L.P.