Singapore Private Home Prices Drop 1.1% In Q2

With this, Sun anticipates house prices to continue to be soft in the coming months thinking about the macroeconomic uncertainties. For the complete year, she expects private home pricings to drop by 3% to 5%.

URA disclosed that values of non-landed residences within the Core Central Region (CCR) dropped 0.1% in Q2, an improvement from Q1’s 2.2% decrease. The Rest of Central Region (RCR) saw values slip 1.9%, a greater decline contrasted to the previous quarter’s 0.5% decline.

” We ought to observe the home market for a few more quarters to identify if prices have bottomed.”

” Nevertheless, it could be early to conclude that this is the beginning of a sustained time frame of price declines. We should beware in translating the pricing dips in a volatile market, particularly when sales volume is lower.”

Flash estimate from the Urban Redevelopment Authority (URA) showed that the private condominium index sank 1.1% in the second quarter of 2020, after a 1% decline seen in the previous quarter.

” Last quarter, show flats were shut off while house viewings were disallowed throughout the Circuit Breaker period. Because of this, purchaser demand was suppressed which will undoubtedly have a negative impact on home prices,” claimed Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.

Values within the Outside Central Region, on the other hand, continued to be unaffected after recording a 0.4% decrease in Q1.

” There is sporadic evidence of ‘green shoots’ in various market segments and some home buyers were grabbing reasonably good bargains in the market over the last few weeks. The prices patterns might be misinterpreted by some of these homes or unique valued units,” said Sun.

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The COVID-19 pandemic has remained to affect the Singapore real estate market as private houses price tags succumbed to a 2nd consecutive quarter.

URA caveat records showed that the number of resale transactions in Q2 2020 is around a quarter of what was sold over the same duration in 2019. The amount of new home sales transacted last quarter is also around 50% of what was transacted in Q2 2019, noted OrangeTee & Tie.

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