SINGAPORE (EDGEPROP) - Despite the “circuit breaker” measures in Singapore, 286 caveats were registered for private residential transactions from April 7 to 30, according to real estate consultancy Knight Frank.
Leonard Tay, head of research at Knight Frank Singapore, says that slightly over half of sales for April were done during the week before the circuit breaker kicked in. There were 581 caveats lodged for residential transactions in April. “Subsequently, lower numbers may have trended during the circuit breaker period, but the figures signal that it is possible to sell and purchase private homes, in spite of the restrictions,” he says.
Linda Chern, head of project marketing, prime sales & leasing, residential, at Knight Frank Singapore, says: “A slower market can give buyers more time to make better, considered options before they make a decision on a property purchase. This could be why home buyers are still actively seeking and buying properties, be it for investment or simply to have a new home to stay in.”
The continued residential sales activity during the circuit breaker indicates that property remains the asset class of choice among ultra-high-net-worth individuals for wealth preservation, says Knight Frank. According to a survey it conducted among wealth advisers, Singapore emerged as the third most popular destination for home purchases among Asian investors, behind the traditional markets of the US and UK.
About 40% of surveyed Singapore high-net-worth individuals say that they still intend to increase their allocations to real estate. This asset class represents 40% of their current wealth allocations.
Meanwhile, the commercial sector saw much lower sales volume. There were only five office caveats and eight shophouse caveats lodged in the 24 days of the circuit breaker in April.
Uncertainties in supply chains, limited marketing activities and almost non-existent physical retail options have led many companies to put expansion plans on hold, and instead redeploy financial resources to weather through the Covid-19 outbreak, says Knight Frank.