When Singapore injects a second round of fiscal spending only a month after the February budget, you know the economy is choked. The $48 billion additional support for businesses and individuals is a welcomed relief. But my guess is, this may not be sufficient for the next 4-6 months.
Just today, “Singapore’s central bank said lenders will offer additional relief for consumers and companies battered by the sharp economic slowdown, including a freeze on mortgage and business loan payments and cuts to credit card rates.” (Source: Bloomberg)
All these spell impending job cuts, bad debts, business failures and fire sales. Very bleak outlook for the newly launched properties. In the past weeks, we see OLA executive condominium (EC) in Sengkang promoting prices starting from $976 psf. This is likely the ceiling price over the next 6 months, rather than the base-price, I believe.
For new buyers in the market, take your time to negotiate. Reach out to other potential buyers, band together and wait as the economy trudge lower. $800 psf maybe? The time limit rules and cash flow issues will eventually force developers to come close to your price. It’s a buyer’s market!
Already the logistics of conducting a property launch and public viewing is frown upon by the authorities. They want to cut down all non-essential contact and meet-ups. How then are developers going to sell? Use telemarketing? Or private viewing tours laced with exclusive discounts?
Heard of properties in Portugal are taking a hit? Read the Financial Times, “..since March 18, Portugal has been in a state of emergency to help combat the spread of Covid-19, and severe travel restrictions have been implemented, drawing a swift halt to property viewings.“
What an excellent time to hone your negotiation skills and patience.
Good luck and all the best.