Singapore Private Home Prices Drop 1.1% In Q2
Flash quote from the Urban Redevelopment Authority (URA) illustrated that the private property index dipped 1.1% in the 2nd quarter of 2020, after a 1% decrease seen in the previous quarter.
” We should observe the property market for a few more quarters to establish if pricings have bottomed.”
The COVID-19 pandemic has continued to influence the Singapore property market as private condo rates fell for a 2nd consecutive quarter.
URA caveat data showed that the amount of resale deals in Q2 2020 is around a quarter of what was transacted over the same period in 2019. The amount of brand-new residential property sales transacted last quarter is also around 50% of what was sold in Q2 2019, noted OrangeTee & Tie.
” There is sporadic evidence of ‘green shoots’ in various market segments and some investors were getting reasonably good bargains in the market over the last couple of weeks. The pricings patterns might be misinterpreted by some of these properties or special valued units,” claimed Sun.
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Figures within the Outside Central Region, conversely, continued to be unaffected after registering a 0.4% decrease in Q1.
URA uncovered that values of non-landed dwelling within the Core Central Region (CCR) slipped 0.1% in Q2, an improvement from Q1’s 2.2% drop. The Rest of Central Region (RCR) saw values drop 1.9%, a larger slide contrasted to the previous quarter’s 0.5% decrease.
” Last quarter, show flats were shut while house viewings were stopped in the time of the Circuit Breaker period. Consequently, home buyer demand was restrained which will inevitably have an unfavorable influence on residential property prices,” claimed Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
With this, Sun forecasts house pricings to stay soft in the coming months taking into consideration the macroeconomic uncertainties. For the complete year, she anticipates private property prices to drop by 3% to 5%.
” Nevertheless, it could be too early to deduce that this is the beginning of a sustained time frame of pricing declines. We should beware in interpreting the pricing dips in an unpredictable market, especially when sales volume is low.”