Singapore Private Home Prices Drop 1.1% In Q2
” Last quarter, show flats were closed while residential property viewings were disallowed in the time of the Circuit Breaker period. Consequently, buyer demand was suppressed which will undoubtedly have an unfavorable influence on residential property prices,” said Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
” We ought to observe the property market for a few more quarters to ascertain if pricings have actually bottomed.”
Flash estimate from the Urban Redevelopment Authority (URA) showed that the private home index dropped 1.1% in the 2nd quarter of 2020, after a 1% drop seen in the previous quarter.
With this, Sun anticipates house pricings to remain soft in the coming months considering the macroeconomic unpredictabilities. For the complete year, she expects private home prices to drop by 3% to 5%.
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URA caveat information showed that the amount of resale agreements in Q2 2020 is around a quarter of what was transacted over the same period in 2019. The number of new launch sales performed last quarter is also around 50% of what was sold off in Q2 2019, mentioned OrangeTee & Tie.
” Nonetheless, it could be early to conclude that this is the beginning of a sustained duration of pricing declines. We ought to beware in analyzing the value dips in a volatile market, especially when sales volume is modest.”
” There is occasional evidence of ‘green shoots’ in certain market segments and some buyers were grabbing fairly great deals in the marketplace over the past number of weeks. The pricings trends can be distorted by some of these residential properties or special priced units,” said Sun.
The COVID-19 pandemic has remained to affect the Singapore property market as private home prices fell for a 2nd successive quarter.
Prices within the Outside Central Region, on the other hand, stayed unaffected after recording a 0.4% decrease in Q1.
URA disclosed that prices of non-landed condo within the Core Central Region (CCR) slid 0.1% in Q2, an improvement from Q1’s 2.2% drop. The Rest of Central Region (RCR) saw costs dip 1.9%, a greater slide contrasted to the previous quarter’s 0.5% decrease.