Singapore Private Home Prices Drop 1.1% In Q2
Flash estimate from the Urban Redevelopment Authority (URA) revealed that the private residential property index slipped 1.1% in the 2nd quarter of 2020, following a 1% decrease seen in the previous quarter.
The COVID-19 pandemic has continued to affect the Singapore property market as private houses rates succumbed to a second successive quarter.
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Pricings within the Outside Central Region, conversely, stood firm after registering a 0.4% decrease in Q1.
” Last quarter, show flats were closed while house viewings were barred during the Circuit Breaker period. Consequently, buyer demand was restrained which will inevitably have a negative impact on home pricings,” claimed Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
URA indicated that values of non-landed condo within the Core Central Region (CCR) slipped 0.1% in Q2, an improvement from Q1’s 2.2% decline. The Rest of Central Region (RCR) saw values slip 1.9%, a bigger decrease compared to the previous quarter’s 0.5% drop.
URA caveat data suggested that the number of resale transactions in Q2 2020 is around a quarter of what was sold over the exact period in 2019. The number of brand-new home sales transacted last quarter is also around 50% of what was sold off in Q2 2019, mentioned OrangeTee & Tie.
” There is erratic proof of ‘green shoots’ in certain market sectors and some home buyers were getting reasonably great bargains in the marketplace over the last number of weeks. The prices patterns can be distorted by some of these homes or special priced units,” said Sun.
” We should observe the home market for a few more quarters to ascertain if prices have actually bottomed.”
” However, it may be early to deduce that this is the beginning of a sustained time frame of price downswings. We need to be cautious in analyzing the pricing dips in an unpredictable market, particularly when sales volume is reduced.”
With this, Sun anticipates residence pricings to continue to be soft in the coming months considering the macroeconomic unpredictabilities. For the full year, she anticipates private home pricings to drop by 3% to 5%.