Home sales may rebound as affordable buyers return but a resale supply trap looms

Affordable demand is back, yet resale flats could cap growth

Home sales are expected to improve each quarter in 2021 compared with 2020, supported by a revival in the affordable segment led by middle-class buyers. While a second wave of Covid-19 could temporarily hit transactions, industry players believe affordability demand can recover to prior levels or higher. However, rising resale flat supply may soften the longer-term outlook.