Singapore Private Home Prices Drop 1.1% In Q2
” Last quarter, show flats were shut off while residential property viewings were stopped in the course of the Circuit Breaker period. Consequently, purchaser demand was suppressed which will undoubtedly have an adverse impact on residential property prices,” said Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
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” We need to observe the real estate market for a few more quarters to establish if pricings have bottomed.”
Prices within the Outside Central Region, conversely, stayed unaffected after registering a 0.4% drop in Q1.
With this, Sun anticipates home costs to stay soft in the coming months considering the macroeconomic uncertainties. For the full year, she anticipates private residence prices to drop by 3% to 5%.
” Nonetheless, it may be too early to deduce that this is the beginning of a sustained duration of price declines. We should be cautious in analyzing the value dips in an unpredictable market, particularly when sales volume is lower.”
URA uncovered that costs of non-landed condo 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 prices slip 1.9%, a greater decline compared to the previous quarter’s 0.5% drop.
URA caveat data revealed that the number of resale deals in Q2 2020 is around a quarter of what was sold over the exact time frame in 2019. The amount of brand-new home sales performed last quarter is also around 50% of what was sold off in Q2 2019, noted OrangeTee & Tie.
The COVID-19 pandemic has continued to affect the Singapore housing market as private dwelling rates succumbed to a second consecutive quarter.
” There is erratic evidence of ‘green shoots’ in various market sectors and some buyers were getting relatively great bargains on the market over the last few weeks. The prices trends could be misrepresented by some of these homes or unique priced units,” claimed Sun.
Flash quote from the Urban Redevelopment Authority (URA) showed that the private condominium index sank 1.1% in the second quarter of 2020, following a 1% drop seen in the previous quarter.