What role did pent-up demand play in the Q2 property market?

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Pent-up Demand Fueled a Surge in Property Transactions in Late June

Pent-up demand was a significant driver behind the increase in property transactions and purchases in the latter half of June. The reopening of showflats as part of Singapore's Phase Two reopening allowed this pent-up demand to manifest, with many prospective buyers having made their purchasing decisions months in advance, some even before the pandemic. The prevailing low interest rates, a consequence of the Covid-19 pandemic, further incentivised these buyers to finalise their acquisitions.
Reopening of Showflats Unleashed Deferred Buying Activity

The transition to Phase Two of Singapore's reopening on June 19 provided the crucial catalyst for pent-up demand to translate into tangible sales. This period saw a notable flurry of sales activity, directly contributing to the uplift in transaction numbers during the final two weeks of June. The ability for buyers to physically view properties again in reopened showflats was instrumental in converting earlier purchase intentions into finalised deals.
Pre-Existing Purchase Decisions Accelerated by Reopening

For a segment of the property market, the decision to acquire an apartment was not a spontaneous reaction to the Phase Two reopening, but rather a culmination of decisions made much earlier. Some buyers had committed to a purchase prior to the onset of the pandemic and used the opportunity presented by the reopening of showflats to proceed with the finalisation of these transactions. This indicates that the underlying intent to buy was already present, awaiting the right conditions to be met.
Low Interest Rates Provided Additional Purchase Incentive

The economic landscape shaped by Covid-19, characterised by historically low interest rates, played a supportive role in motivating property purchases. This environment made borrowing more affordable, thereby encouraging prospective buyers to proceed with their plans. The combination of pent-up demand and favourable financing conditions created a potent mix that drove activity in the property market during the latter part of the second quarter.

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What role did pent-up demand play in the Q2 property market?

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