Singapore Private Home Prices Drop 1.1% In Q2
The COVID-19 pandemic has remained to affect the Singapore property market as private home price tags succumbed to a 2nd consecutive quarter.
With this, Sun expects house pricings to stay soft in the coming months considering the macroeconomic unpredictabilities. For the complete year, she anticipates private home prices to drop by 3% to 5%.
URA indicated that costs 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 prices drop 1.9%, a larger drop compared to the previous quarter’s 0.5% drop.
” However, it may be too early to conclude that this is the beginning of a sustained duration of value decreases. We ought to be cautious in translating the price dips in a volatile market, especially when sales volume is modest.”
Flash price quote from the Urban Redevelopment Authority (URA) showed that the private condo index dropped 1.1% in the second quarter of 2020, following a 1% decrease seen in the previous quarter.
Figures within the Outside Central Region, on the other hand, stayed unaffected after recording a 0.4% fall in Q1.
” There is erratic evidence of ‘green shoots’ in certain market segments and some buyers were buying relatively great deals in the marketplace over the past couple of weeks. The prices trends can be misinterpreted by some of these residential properties or special priced units,” said Sun.
URA caveat data indicated that the amount of resale deals in Q2 2020 is around a quarter of what was sold over the same period in 2019. The number of brand-new home sales performed last quarter is also around 50% of what was sold in Q2 2019, noted OrangeTee & Tie.
” Last quarter, show flats were shut off while residential property viewings were barred in the time of the Circuit Breaker period. Consequently, purchaser demand was restrained which will unavoidably have a negative influence on home prices,” stated Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
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” We need to observe the property market for a few more quarters to establish if prices have actually bottomed.”