Singapore Private Home Prices Drop 1.1% In Q2
Prices within the Outside Central Region, conversely, stood the same after recording a 0.4% decrease in Q1.
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URA caveat data indicated that the amount of resale agreements in Q2 2020 is around a quarter of what was transacted over the same period last year. The amount of new home sales transacted last quarter is also around 50% of what was sold in Q2 2019, noted OrangeTee & Tie.
The COVID-19 pandemic has continued to influence the Singapore housing market as private residences price tags fell for a second successive quarter.
With this, Sun anticipates home prices to stay soft in the coming months considering the macroeconomic unpredictabilities. For the complete year, she expects private property costs to drop by 3% to 5%.
” There is sporadic evidence of ‘green shoots’ in certain market sectors and some home buyers were buying reasonably excellent deals on the market over the last number of weeks. The pricings patterns could be distorted by some of these residential properties or unique valued units,” claimed Sun.
URA indicated that values of non-landed homes within the Core Central Region (CCR) slipped 0.1% in Q2, an improvement from Q1’s 2.2% decrease. The Rest of Central Region (RCR) saw values slip 1.9%, a bigger decline compared to the previous quarter’s 0.5% decrease.
” We ought to observe the real estate market for a few more quarters to establish if pricings have bottomed.”
” Last quarter, show flats were shut while home viewings were barred throughout the Circuit Breaker period. Because of this, home buyer demand was suppressed which will inevitably have an adverse effect on residential property prices,” claimed Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
” Nevertheless, it could be too early to conclude that this is the start of a sustained time frame of price drops. We ought to be cautious in translating the value dips in a volatile market, especially when sales volume is lower.”
Flash quote from the Urban Redevelopment Authority (URA) illustrated that the private property index fell 1.1% in the 2nd quarter of 2020, after a 1% drop seen in the previous quarter.