Singapore Private Home Prices Drop 1.1% In Q2
URA caveat information suggested that the amount of resale transactions in Q2 2020 is around a quarter of what was sold over the exact period in 2019. The amount of brand-new home sales transacted last quarter is also around 50% of what was sold in Q2 2019, mentioned OrangeTee & Tie.
” Last quarter, show flats were closed while residential property viewings were stopped in the time of the Circuit Breaker period. As a result, home buyer demand was restrained which will undoubtedly have an unfavorable influence on home prices,” stated 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 duration of price declines. We ought to be cautious in translating the value dips in an unstable market, specifically when sales volume is low.”
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The COVID-19 pandemic has continued to influence the Singapore housing market as private condo price tags succumbed to a second consecutive quarter.
” There is sporadic evidence of ‘green shoots’ in specific market sectors and some buyers were purchasing relatively great bargains in the market over the past number of weeks. Therefore, the pricings patterns could be distorted by some of these residential properties or special valued units,” stated Sun.
” We must observe the property market for a few more quarters to determine if pricings have actually bottomed.”
Values within the Outside Central Region, on the other hand, continued to be unaffected after recording a 0.4% drop in Q1.
With this, Sun anticipates house prices to remain soft in the coming months considering the macroeconomic unpredictabilities. For the complete year, she anticipates private property prices to drop by 3% to 5%.
URA revealed that prices of non-landed dwelling within the Core Central Region (CCR) slid 0.1% in Q2, an improvement from Q1’s 2.2% decrease. The Rest of Central Region (RCR) saw prices fall 1.9%, a bigger slide compared to the previous quarter’s 0.5% decrease.
Flash quote from the Urban Redevelopment Authority (URA) showed that the private property index sank 1.1% in the 2nd quarter of 2020, after a 1% drop seen in the previous quarter.