Singapore Private Home Prices Drop 1.1% In Q2
Prices within the Outside Central Region, on the contrary, stood the same after recording a 0.4% drop in Q1.
” There is sporadic evidence of ‘green shoots’ in specific market sectors and some buyers were purchasing reasonably good bargains on the market over the past couple of weeks. As a result, the values trends could be distorted by some of these residential properties or unique valued units,” stated Sun.
URA disclosed that costs of non-landed residences within the Core Central Region (CCR) slipped 0.1% in Q2, an improvement from Q1’s 2.2% loss. The Rest of Central Region (RCR) saw prices drop 1.9%, a greater slide opposed to the previous quarter’s 0.5% decrease.
Flash quote from the Urban Redevelopment Authority (URA) revealed that the private condominium index dipped 1.1% in the second quarter of 2020, following a 1% decline seen in the previous quarter.
” However, it could be too early to conclude that this is the beginning of a sustained period of price downswings. We ought to beware in analyzing the price dips in a volatile market, particularly when sales volume is low.”
URA caveat data indicated that the number of resale deals in Q2 2020 is around a quarter of what was sold over the same duration last year. The number of brand-new residential property sales performed last quarter is also around 50% of what was sold off in Q2 2019, mentioned OrangeTee & Tie.
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The COVID-19 pandemic has remained to influence the Singapore real estate market as private houses prices succumbed to a 2nd successive quarter.
” Last quarter, show flats were shut off while residential property viewings were disallowed throughout the Circuit Breaker period. As a result, home buyer demand was suppressed which will certainly have an adverse impact on home prices,” said Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
With this, Sun forecasts residence prices to continue to be soft in the coming months considering the macroeconomic uncertainties. For the complete year, she expects private home prices to drop by 3% to 5%.
” We should observe the property market for a few more quarters to identify if prices have actually bottomed.”