Singapore Private Home Prices Drop 1.1% In Q2
URA revealed that costs of non-landed houses within the Core Central Region (CCR) slid 0.1% in Q2, an improvement from Q1’s 2.2% decline. The Rest of Central Region (RCR) saw values dip 1.9%, a more substantial slide compared to the previous quarter’s 0.5% decrease.
Flash price quote from the Urban Redevelopment Authority (URA) illustrated that the private home index fell 1.1% in the 2nd quarter of 2020, after a 1% decrease seen in the previous quarter.
” Last quarter, show flats were closed while home viewings were disallowed in the course of the Circuit Breaker period. Because of this, home buyer demand was suppressed which will undoubtedly have an adverse influence on residence pricings,” said Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
” We need to observe the residential property market for a few more quarters to determine if pricings have bottomed.”
URA caveat information revealed that the number of resale transactions in Q2 2020 is around a quarter of what was transacted over the same time frame in 2019. The number of new home sales performed last quarter is also around 50% of what was transacted in Q2 2019, noted OrangeTee & Tie.
The COVID-19 pandemic has continued to impact the Singapore property market as private residences prices fell for a 2nd successive quarter.
Values within the Outside Central Region, on the other hand, stayed the same after registering a 0.4% decline in Q1.
” There is occasional proof of ‘green shoots’ in specific market segments and some purchasers were buying fairly excellent bargains in the market over the past couple of weeks. Therefore, the pricings trends could be misrepresented by some of these homes or unique valued units,” said Sun.
19 Nassim Showflat is beautifully done and ready for viewing.
” Nevertheless, it may be too early to conclude that this is the beginning of a sustained time frame of value decreases. We need to beware in analyzing the value dips in an unstable market, particularly when sales volume is lower.”
With this, Sun forecasts house prices to stay soft in the coming months thinking about the macroeconomic unpredictabilities. For the full year, she expects private home prices to drop by 3% to 5%.