Singapore Private Home Prices Drop 1.1% In Q2
The COVID-19 pandemic has remained to impact the Singapore real estate market as private houses costs fell for a 2nd consecutive quarter.
” Last quarter, show flats were shut while residential property viewings were barred during the Circuit Breaker period. Therefore, purchaser demand was restrained which will undoubtedly have an adverse effect on residence pricings,” claimed Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
URA indicated that prices of non-landed residences within the Core Central Region (CCR) slid 0.1% in Q2, an improvement from Q1’s 2.2% decrease. The Rest of Central Region (RCR) saw costs slip 1.9%, a more substantial drop opposed to the previous quarter’s 0.5% decrease.
” There is occasional proof of ‘green shoots’ in certain market segments and some buyers were snapping up fairly excellent bargains in the market over the last couple of weeks. The prices patterns can be distorted by some of these homes or special valued units,” stated Sun.
” We should observe the residential property market for a few more quarters to identify if pricings have actually bottomed.”
Price tags within the Outside Central Region, conversely, stayed firm after recording a 0.4% drop in Q1.
” Nevertheless, it may be too early to deduce that this is the beginning of a sustained time frame of price declines. We ought to be cautious in interpreting the pricing dips in an unpredictable market, especially when sales volume is lower.”
URA caveat records showed that the amount of resale deals in Q2 2020 is around a quarter of what was sold over the same period last year. The amount of new residential property sales performed last quarter is also around 50% of what was sold in Q2 2019, mentioned OrangeTee & Tie.
With this, Sun expects home prices to remain soft in the coming months thinking about the macroeconomic unpredictabilities. For the complete year, she anticipates private property costs to drop by 3% to 5%.
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Flash estimate from the Urban Redevelopment Authority (URA) indicated that the private residential property index dipped 1.1% in the 2nd quarter of 2020, after a 1% drop seen in the previous quarter.