Singapore Private Home Prices Drop 1.1% In Q2
” Last quarter, show flats were closed while house viewings were barred in the course of the Circuit Breaker period. Because of this, purchaser demand was suppressed which will inevitably have a negative impact on residential property prices,” said Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
” However, it may be too early to conclude that this is the start of a sustained period of value decreases. We must be cautious in interpreting the pricing dips in a volatile market, specifically when sales volume is lower.”
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Flash estimate from the Urban Redevelopment Authority (URA) illustrated that the private property index dropped 1.1% in the second quarter of 2020, after a 1% decline seen in the previous quarter.
With this, Sun anticipates residence pricings to remain soft in the coming months thinking about the macroeconomic uncertainties. For the full year, she anticipates private home prices to drop by 3% to 5%.
Price tags within the Outside Central Region, conversely, continued to be the same after registering a 0.4% drop in Q1.
The COVID-19 pandemic has remained to impact the Singapore housing market as private condo rates succumbed to a 2nd successive quarter.
URA disclosed that prices of non-landed houses within the Core Central Region (CCR) dropped 0.1% in Q2, an improvement from Q1’s 2.2% decline. The Rest of Central Region (RCR) saw costs dip 1.9%, a greater drop opposed to the previous quarter’s 0.5% decrease.
” We need to observe the residential property market for a few more quarters to establish if pricings have bottomed.”
URA caveat data showed that the amount of resale deals in Q2 2020 is around a quarter of what was sold over the same duration in 2019. The number of new launch sales transacted last quarter is also around 50% of what was sold off in Q2 2019, noted OrangeTee & Tie.
” There is erratic proof of ‘green shoots’ in certain market segments and some investors were purchasing relatively excellent bargains in the market over the last couple of weeks. The prices patterns can be distorted by some of these homes or unique priced units,” said Sun.