Singapore Private Home Prices Drop 1.1% In Q2
” We need to observe the real estate market for a few more quarters to identify if prices have bottomed.”
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” There is sporadic proof of ‘green shoots’ in various market segments and some investors were grabbing relatively great deals on the market over the last few weeks. Therefore, the pricings trends might be distorted by some of these residential properties or unique priced units,” said Sun.
With this, Sun expects residence pricings to continue to be soft in the coming months taking into consideration the macroeconomic uncertainties. For the full year, she anticipates private home pricings to drop by 3% to 5%.
Flash price quote from the Urban Redevelopment Authority (URA) revealed that the private condo index dipped 1.1% in the second quarter of 2020, following a 1% drop seen in the previous quarter.
” Last quarter, show flats were shut while home viewings were disallowed throughout the Circuit Breaker period. Therefore, buyer demand was suppressed which will certainly have an unfavorable effect on home pricings,” said Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
URA indicated that prices of non-landed houses 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 costs drop 1.9%, a bigger drop compared to the previous quarter’s 0.5% drop.
” However, it could be early to conclude that this is the beginning of a sustained time frame of value decreases. We must be cautious in analyzing the value dips in an unstable market, especially when sales volume is reduced.”
The COVID-19 pandemic has remained to impact the Singapore real estate market as private condo costs succumbed to a second consecutive quarter.
URA caveat data showed that the amount of resale agreements in Q2 2020 is around a quarter of what was transacted over the same duration last year. The number of brand-new home sales performed last quarter is also around 50% of what was sold off in Q2 2019, mentioned OrangeTee & Tie.
Price tags within the Outside Central Region, on the contrary, remained firm after registering a 0.4% drop in Q1.