Singapore Private Home Prices Drop 1.1% In Q2
” There is occasional proof of ‘green shoots’ in specific market segments and some investors were snapping up reasonably great deals in the marketplace over the past couple of weeks. The prices patterns might be misrepresented by some of these residential properties or special priced units,” claimed Sun.
URA uncovered that values of non-landed condo within the Core Central Region (CCR) slipped 0.1% in Q2, an improvement from Q1’s 2.2% drop. The Rest of Central Region (RCR) saw values drop 1.9%, a more substantial drop contrasted to the previous quarter’s 0.5% decrease.
URA caveat records suggested that the amount of resale agreements in Q2 2020 is around a quarter of what was transacted over the same time frame in 2019. The number of new residential property sales performed last quarter is also around 50% of what was sold in Q2 2019, mentioned OrangeTee & Tie.
Flash quote from the Urban Redevelopment Authority (URA) indicated that the private condominium index dropped 1.1% in the second quarter of 2020, after a 1% decline seen in the previous quarter.
Values within the Outside Central Region, conversely, stayed unchanged after recording a 0.4% decrease in Q1.
” Last quarter, show flats were closed while residential property viewings were barred in the time of the Circuit Breaker period. Consequently, buyer demand was suppressed which will certainly have an adverse effect on residential property prices,” claimed Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
With this, Sun forecasts residence prices to remain soft in the coming months considering the macroeconomic unpredictabilities. For the complete year, she anticipates private property costs to drop by 3% to 5%.
” We need to observe the residential property market for a few more quarters to identify if pricings have bottomed.”
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The COVID-19 pandemic has continued to influence the Singapore housing market as private residences prices succumbed to a second successive quarter.
” Nevertheless, it may be early to deduce that this is the start of a sustained period of price downswings. We need to be cautious in translating the price dips in a volatile market, especially when sales volume is reduced.”
