Singapore Private Home Prices Drop 1.1% In Q2
URA disclosed that costs of non-landed homes within the Core Central Region (CCR) dropped 0.1% in Q2, an improvement from Q1’s 2.2% loss. The Rest of Central Region (RCR) saw values drop 1.9%, a more substantial decline contrasted to the previous quarter’s 0.5% decrease.
Flash quote from the Urban Redevelopment Authority (URA) illustrated that the private condo index dropped 1.1% in the second quarter of 2020, following a 1% decline seen in the previous quarter.
” Nevertheless, it may be too early to conclude that this is the beginning of a sustained time frame of value decreases. We must beware in interpreting the price dips in an unpredictable market, especially when sales volume is low.”
” There is occasional proof of ‘green shoots’ in certain market sectors and some buyers were getting fairly great bargains out there over the last few weeks. The pricings patterns might be misinterpreted by some of these properties or special priced units,” claimed Sun.
Prices within the Outside Central Region, on the contrary, stayed unchanged after registering a 0.4% fall in Q1.
With this, Sun forecasts house costs to remain soft in the coming months taking into consideration the macroeconomic unpredictabilities. For the complete year, she expects private home costs to drop by 3% to 5%.
URA caveat data suggested that the number of resale agreements in Q2 2020 is around a quarter of what was sold over the same period last year. The amount of brand-new home sales transacted last quarter is also around 50% of what was sold in Q2 2019, noted OrangeTee & Tie.
” Last quarter, show flats were shut while residential property viewings were disallowed during the Circuit Breaker period. Therefore, purchaser demand was suppressed which will undoubtedly have a negative impact on home pricings,” stated Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
The COVID-19 pandemic has remained to influence the Singapore property market as private houses prices fell for a second consecutive quarter.
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” We ought to observe the real estate market for a few more quarters to establish if prices have actually bottomed.”