Singapore Private Home Prices Drop 1.1% In Q2
URA caveat records suggested that the number of resale deals in Q2 2020 is around a quarter of what was transacted over the same time frame last year. The number of brand-new home sales performed last quarter is also around 50% of what was transacted in Q2 2019, noted OrangeTee & Tie.
” We must observe the residential property market for a few more quarters to identify if prices have actually bottomed.”
” Nevertheless, it may be early to deduce that this is the start of a sustained duration of value downswings. We must beware in translating the price dips in an unpredictable market, specifically when sales volume is modest.”
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” Last quarter, show flats were closed while house viewings were barred in the course of the Circuit Breaker period. Consequently, purchaser demand was suppressed which will certainly have an unfavorable effect on residential property pricings,” claimed Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
Values within the Outside Central Region, on the contrary, continued to be the same after recording a 0.4% fall in Q1.
Flash quote from the Urban Redevelopment Authority (URA) revealed that the private property index fell 1.1% in the 2nd quarter of 2020, after a 1% drop seen in the previous quarter.
” There is occasional evidence of ‘green shoots’ in certain market segments and some purchasers were grabbing reasonably excellent bargains on the market over the last few weeks. As a result, the pricings trends could be distorted by a few of these residential properties or unique valued units,” said Sun.
The COVID-19 pandemic has continued to impact the Singapore real estate market as private dwelling price tags succumbed to a 2nd successive quarter.
URA indicated that values of non-landed condo within the Core Central Region (CCR) slipped 0.1% in Q2, an improvement from Q1’s 2.2% loss. The Rest of Central Region (RCR) saw values dip 1.9%, a larger drop contrasted to the previous quarter’s 0.5% decline.
With this, Sun expects home pricings to stay soft in the coming months thinking about the macroeconomic unpredictabilities. For the full year, she anticipates private property prices to drop by 3% to 5%.