Singapore Private Home Prices Drop 1.1% In Q2
Flash estimate from the Urban Redevelopment Authority (URA) indicated that the private property index sank 1.1% in the 2nd quarter of 2020, after a 1% decrease seen in the previous quarter.
URA disclosed that values of non-landed houses within the Core Central Region (CCR) slid 0.1% in Q2, an improvement from Q1’s 2.2% loss. The Rest of Central Region (RCR) saw prices fall 1.9%, a bigger slide compared to the previous quarter’s 0.5% drop.
The COVID-19 pandemic has continued to affect the Singapore housing market as private home rates succumbed to a second consecutive quarter.
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” We ought to observe the home market for a few more quarters to identify if prices have bottomed.”
” There is sporadic evidence of ‘green shoots’ in certain market sectors and some purchasers were buying fairly good deals on the market over the last number of weeks. As a result, the prices patterns can be distorted by a few of these residential properties or special valued units,” said Sun.
Price tags within the Outside Central Region, on the contrary, continued to be the same after recording a 0.4% drop in Q1.
URA caveat records indicated that the amount of resale transactions in Q2 2020 is around a quarter of what was sold over the exact period last year. The amount of brand-new residential property sales transacted last quarter is also around 50% of what was transacted in Q2 2019, noted OrangeTee & Tie.
” However, it may be too early to deduce that this is the start of a sustained period of value downswings. We ought to be cautious in translating the pricing dips in a volatile market, especially when sales volume is lower.”
” Last quarter, show flats were shut off while house viewings were barred throughout the Circuit Breaker period. Because of this, home buyer demand was restrained which will unavoidably have an unfavorable impact on residence prices,” said Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
With this, Sun expects residence costs to remain soft in the coming months considering the macroeconomic unpredictabilities. For the full year, she anticipates private property costs to drop by 3% to 5%.