Singapore Private Home Prices Drop 1.1% In Q2
” Last quarter, show flats were closed while residential property viewings were disallowed throughout the Circuit Breaker period. Therefore, purchaser demand was restrained which will inevitably have an unfavorable effect on home pricings,” claimed Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
With this, Sun forecasts house pricings to remain soft in the coming months thinking about the macroeconomic uncertainties. For the full year, she anticipates private property costs to drop by 3% to 5%.
” We ought to observe the residential property market for a few more quarters to establish if pricings have bottomed.”
URA caveat records indicated that the amount of resale deals in Q2 2020 is around a quarter of what was transacted over the exact duration in 2019. The amount of new home sales performed last quarter is also around 50% of what was sold in Q2 2019, noted OrangeTee & Tie.
The COVID-19 pandemic has remained to influence the Singapore real estate market as private dwelling price tags fell for a 2nd consecutive quarter.
Flash quote from the Urban Redevelopment Authority (URA) revealed that the private condo index dropped 1.1% in the 2nd quarter of 2020, after a 1% drop seen in the previous quarter.
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Prices within the Outside Central Region, conversely, continued to be the same after recording a 0.4% decrease in Q1.
” There is occasional evidence of ‘green shoots’ in specific market sectors and some purchasers were buying relatively good bargains out there over the past couple of weeks. The prices trends could be misinterpreted by some of these properties or special priced units,” claimed Sun.
URA uncovered that prices of non-landed homes within the Core Central Region (CCR) slid 0.1% in Q2, an improvement from Q1’s 2.2% drop. The Rest of Central Region (RCR) saw prices slip 1.9%, a larger decrease contrasted to the previous quarter’s 0.5% decrease.
” Nevertheless, it may be early to deduce that this is the start of a sustained duration of pricing declines. We need to beware in analyzing the value dips in an unpredictable market, especially when sales volume is reduced.”