Singapore Private Home Prices Drop 1.1% In Q2
The COVID-19 pandemic has remained to influence the Singapore housing market as private dwelling rates fell for a second consecutive quarter.
URA caveat information revealed 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 new launch sales performed last quarter is also around 50% of what was sold off in Q2 2019, mentioned OrangeTee & Tie.
Figures within the Outside Central Region, on the other hand, remained firm after recording a 0.4% drop in Q1.
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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 prices fall 1.9%, a greater drop compared to the previous quarter’s 0.5% decrease.
” We must observe the property market for a few more quarters to ascertain if prices have bottomed.”
Flash estimate from the Urban Redevelopment Authority (URA) illustrated that the private condominium index dropped 1.1% in the 2nd quarter of 2020, following a 1% decrease seen in the previous quarter.
With this, Sun expects home pricings to remain soft in the coming months considering the macroeconomic uncertainties. For the full year, she anticipates private home prices to drop by 3% to 5%.
” However, it could be too early to conclude that this is the start of a sustained time frame of pricing decreases. We ought to be cautious in interpreting the pricing dips in an unstable market, particularly when sales volume is lower.”
” There is sporadic evidence of ‘green shoots’ in specific market sectors and some purchasers were buying fairly excellent deals in the market over the past couple of weeks. The prices patterns might be misrepresented by some of these residential properties or special priced units,” claimed Sun.
” Last quarter, show flats were shut while home viewings were disallowed during the Circuit Breaker period. Consequently, buyer demand was restrained which will undoubtedly have an unfavorable impact on home pricings,” stated Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.