URA flash estimates for Q1 2020 showed prices of resale private homes declined 1.2% compared with Q4 2019, due in part to the impact of Covid-19 on the overall economy. However analysts do not expect a sharp fall in prices due to the support of 4 factors.
First, government measures to assist individual homeowners introduced in the Resilience Budget, to either delay outstanding property loan obligations or convert unsecured loans to a lower interest term loan.
Second, employment is being supported with assistance given to employers, reducing the risk of homeowners being laid off.
Third, developers in the primary market would adopt flexible pricing strategies to continue to attract sales, avoiding a barren period.
Fourth, existing measures governing property sales and maximum loan amounts under the Total Debt Servicing Ratio (TDSR) have already ensured households were not taking on too much mortgage debt.