Singapore Private Home Prices Drop 1.1% In Q2
” We should observe the home market for a few more quarters to establish if pricings have bottomed.”
” Last quarter, show flats were shut off while house viewings were disallowed in the time of the Circuit Breaker period. Therefore, home buyer demand was suppressed which will undoubtedly have an unfavorable effect on residential property prices,” stated Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
URA caveat records indicated that the amount of resale agreements in Q2 2020 is around a quarter of what was transacted over the exact time frame last year. The number of brand-new residential property sales transacted last quarter is also around 50% of what was sold in Q2 2019, noted OrangeTee & Tie.
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Prices within the Outside Central Region, conversely, stayed firm after recording a 0.4% drop in Q1.
With this, Sun anticipates residence prices to stay soft in the coming months considering the macroeconomic uncertainties. For the full year, she anticipates private residence prices to drop by 3% to 5%.
” There is sporadic proof of ‘green shoots’ in certain market segments and some purchasers were purchasing fairly excellent deals out there over the last few weeks. Therefore, the pricings patterns could be misrepresented by some of these residential properties or unique priced units,” claimed Sun.
Flash quote from the Urban Redevelopment Authority (URA) illustrated that the private property index slipped 1.1% in the second quarter of 2020, after a 1% drop seen in the previous quarter.
” Nevertheless, it may be too early to deduce that this is the beginning of a sustained time frame of pricing declines. We ought to beware in analyzing the pricing dips in a volatile market, especially when sales volume is low.”
The COVID-19 pandemic has continued to impact the Singapore housing market as private home prices fell for a second successive quarter.
URA revealed that prices of non-landed residences 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 costs fall 1.9%, a more substantial decrease compared to the previous quarter’s 0.5% decline.