Flash estimates from URA for Quarter 1 2020 showed a decline in prices of resale private homes of 1.2% versus Quarter 4 2019, partly due to the influence of Covid-19. However analysts interviewed do not expect a large drop in prices for 4 supporting reasons.

First, government measures introduced befitting homeowners under the Resilience Budget, to convert high interest unsecured loans to a lower interest term loan, and an option to defer mortgage payments to ease immediate cash flow pressure.

Second, jobs are being supported with financial and wage assistance given to employers, encouraging employers to retain their workers.

Third, housing developers selling new condo units would price units strategically to maintain a level of sales and keep the market liquid.

Fourth, existing Total Debt Servicing Ratio (TDSR) limits already in place since 2013 have prevented households from over-extending their finances when they purchased their homes.