Singapore Private Home Prices Drop 1.1% In Q2
” We need to observe the property market for a few more quarters to establish if prices have bottomed.”
The COVID-19 pandemic has remained to influence the Singapore real estate market as private condo price tags succumbed to a second successive quarter.
Pricings within the Outside Central Region, on the contrary, stayed firm after registering a 0.4% fall in Q1.
” Last quarter, show flats were shut off while residential property viewings were stopped throughout the Circuit Breaker period. Because of this, purchaser demand was suppressed which will certainly have a negative impact on residential property prices,” claimed Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
With this, Sun forecasts home 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 caveat records revealed that the amount of resale transactions in Q2 2020 is around a quarter of what was transacted over the same period last year. The number of new home sales performed last quarter is also around 50% of what was transacted in Q2 2019, mentioned OrangeTee & Tie.
” Nevertheless, it may be early to deduce that this is the start of a sustained time frame of price decreases. We should be cautious in translating the price dips in a volatile market, especially when sales volume is low.”
Flash quote from the Urban Redevelopment Authority (URA) showed that the private property index fell 1.1% in the second quarter of 2020, after a 1% decrease seen in the previous quarter.
” There is occasional evidence of ‘green shoots’ in various market sectors and some buyers were getting reasonably excellent bargains in the marketplace over the last number of weeks. The pricings patterns can be misrepresented by some of these homes or unique priced units,” claimed Sun.
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URA indicated that prices of non-landed condo within the Core Central Region (CCR) slid 0.1% in Q2, an improvement from Q1’s 2.2% decline. The Rest of Central Region (RCR) saw costs dip 1.9%, a more substantial decrease opposed to the previous quarter’s 0.5% decline.