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Job-saving measures will cushion some of the pain hitting property sector

Government has learnt to manage negative hits to real estate market, say analysts

Published Sun, May 3, 2020 · 09:50 PM

Singapore

AS SINGAPORE heads towards its worst recession since its independence, with dire predictions of massive job losses, analysts believe the impact on the property sector will be cushioned by the government's determination to support citizens' livelihoods.

In Q1, private home prices fell 1 per cent while total transactions fell 12.5 per cent. Both figures are expected to worsen for the full year.

Private home prices are expected to fall by 5 to 10 per cent in 2020, and new home sales are expected to fall to just half of the 9,912 units sold in 2019. But consultants said government measures, including job support and mortgage relief measures, will mitigate the pain.

DBS has estimated the total fiscal response at S$68.8 billion or about 13.8 …