Singapore Private Home Prices Drop 1.1% In Q2
” We need to observe the real estate market for a few more quarters to ascertain if prices have bottomed.”
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% decrease. The Rest of Central Region (RCR) saw prices drop 1.9%, a bigger decrease opposed to the previous quarter’s 0.5% decrease.
” Last quarter, show flats were shut off while house viewings were stopped throughout the Circuit Breaker period. Consequently, purchaser demand was restrained which will certainly have a negative influence on home prices,” said Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
” There is erratic evidence of ‘green shoots’ in specific market sectors and some investors were getting relatively good bargains in the marketplace over the past couple of weeks. As a result, the pricings trends could be misrepresented by some of these properties or unique valued units,” said Sun.
Flash estimate from the Urban Redevelopment Authority (URA) showed that the private home index sank 1.1% in the 2nd quarter of 2020, following a 1% drop seen in the previous quarter.
The COVID-19 pandemic has continued to affect the Singapore real estate market as private home prices fell for a 2nd consecutive quarter.
Price tags within the Outside Central Region, conversely, stayed the same after registering a 0.4% fall in Q1.
” However, it could be too early to deduce that this is the start of a sustained period of price declines. We should be cautious in translating the pricing dips in an unstable market, particularly when sales volume is reduced.”
With this, Sun anticipates residence pricings to stay soft in the coming months taking into consideration the macroeconomic unpredictabilities. For the complete year, she expects private home pricings to drop by 3% to 5%.
URA caveat information revealed that the number of resale deals in Q2 2020 is around a quarter of what was transacted over the exact duration last year. The amount of new launch sales transacted last quarter is also around 50% of what was transacted in Q2 2019, noted OrangeTee & Tie.