Singapore Private Home Prices Drop 1.1% In Q2
URA caveat information showed that the amount of resale agreements in Q2 2020 is around a quarter of what was sold over the exact period in 2019. The amount 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 affect the Singapore real estate market as private condo rates succumbed to a second successive quarter.
” However, it could be too early to conclude that this is the beginning of a sustained duration of pricing drops. We should beware in interpreting the price dips in a volatile market, specifically when sales volume is modest.”
” We ought to observe the property market for a few more quarters to ascertain if pricings have actually bottomed.”
URA reported that costs of non-landed condo 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 fall 1.9%, a more substantial decline contrasted to the previous quarter’s 0.5% decline.
” There is occasional evidence of ‘green shoots’ in various market sectors and some buyers were getting fairly good bargains on the market over the last number of weeks. Therefore, the prices trends might be misrepresented by some of these homes or unique priced units,” stated Sun.
Flash estimate from the Urban Redevelopment Authority (URA) showed that the private condo index dropped 1.1% in the 2nd quarter of 2020, after a 1% decline seen in the previous quarter.
Values within the Outside Central Region, on the contrary, remained unaffected after registering a 0.4% decline in Q1.
With this, Sun forecasts house pricings to continue to be soft in the coming months thinking about the macroeconomic uncertainties. For the complete year, she anticipates private residence pricings to drop by 3% to 5%.
” Last quarter, show flats were closed while house viewings were disallowed in the course of the Circuit Breaker period. As a result, buyer demand was suppressed which will inevitably have a negative impact on residence pricings,” stated Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.