Read this article in the Business Times which might be of interest.
Driver 1: HDB Upgraders
Industry expects more HDB dwellers to move to matured public housing estates or private residential properties. This is as more owners of new Housing & Development Board flats complete their minimum occupation period between 2020 and 2023.
Driver 2: Uneven impact of Covid
At risk of oversimplifying, this is the classic case of the rich getting richer and the poor getting ....
Singapore data shows that people in the 61st-90th income deciles are upgrading into condos at a faster pace than those from lower income deciles.
Blue collar workers are often required to be present physically at the workplace due to the nature of the work. Many lost their income due to closures of non-essential work locations. In contrast, white collar workers could often work from home during the shutdown.
This is consistent with DBS's finding here, inter alia, that the lower income group is bearing the brunt of the pandemic.
Driver 3: low cost of leverage (cheap debt)
Mortgage rates have fallen in line with the drop of benchmark rates. Sub-1 per cent rates are even being offered to affluent clients depending on loan quantum.
Driver 4: En bloc Fever
The previous en bloc cycle was in Q2 2016 when inventory fell to 23,000 unsold residential units.
In Q3 2020, inventory has fallen to 26,600 units, signalling undersupply in the primary market.
Driver 5: Foreign demand
There has been increased activity in the Sentosa Cove bungalow market in recent months, partly driven by buyers from mainland China.
Do you agree with these drivers? How can you leverage the momentum and participate in the value creation cycle?