Singapore Private Home Prices Drop 1.1% In Q2
The COVID-19 pandemic has continued to impact the Singapore housing market as private dwelling price tags fell for a 2nd consecutive quarter.
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With this, Sun anticipates house pricings to remain soft in the coming months taking into consideration the macroeconomic unpredictabilities. For the full year, she anticipates private residence pricings to drop by 3% to 5%.
” Last quarter, show flats were shut off while home viewings were barred during the Circuit Breaker period. Therefore, buyer demand was suppressed which will unavoidably have a negative effect on residential property pricings,” stated Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
” We should observe the home market for a few more quarters to establish if prices have bottomed.”
URA caveat data revealed that the amount of resale transactions in Q2 2020 is around a quarter of what was sold over the same period last year. The amount of new residential property sales transacted last quarter is also around 50% of what was sold in Q2 2019, mentioned OrangeTee & Tie.
URA indicated that costs of non-landed condo within the Core Central Region (CCR) dropped 0.1% in Q2, an improvement from Q1’s 2.2% drop. The Rest of Central Region (RCR) saw values slip 1.9%, a more substantial decrease contrasted to the previous quarter’s 0.5% decrease.
Values within the Outside Central Region, conversely, stood the same after recording a 0.4% fall in Q1.
” There is occasional evidence of ‘green shoots’ in certain market segments and some investors were snapping up relatively good bargains in the marketplace over the last few weeks. The pricings patterns can be distorted by some of these residential properties or special priced units,” said Sun.
Flash price quote from the Urban Redevelopment Authority (URA) showed that the private condo index fell 1.1% in the second quarter of 2020, following a 1% drop seen in the previous quarter.
” However, it could be too early to conclude that this is the start of a sustained period of value declines. We ought to beware in interpreting the price dips in an unpredictable market, especially when sales volume is low.”
