Singapore Private Home Prices Drop 1.1% In Q2
” Nonetheless, it could be too early to deduce that this is the start of a sustained time frame of price drops. We ought to be cautious in translating the pricing dips in an unpredictable market, especially when sales volume is lower.”
URA caveat records indicated that the amount of resale agreements in Q2 2020 is around a quarter of what was sold over the same period in 2019. The amount of new home sales transacted last quarter is also around 50% of what was sold off in Q2 2019, noted OrangeTee & Tie.
” There is sporadic proof of ‘green shoots’ in specific market segments and some home buyers were buying reasonably great deals on the market over the last number of weeks. Consequently, the values patterns can be misrepresented by several of these properties or unique valued units,” stated Sun.
” We need to observe the residential property market for a few more quarters to identify if prices have actually bottomed.”
Flash estimate from the Urban Redevelopment Authority (URA) revealed that the private property index sank 1.1% in the 2nd quarter of 2020, following a 1% decrease seen in the previous quarter.
With this, Sun anticipates home prices to stay soft in the coming months thinking about the macroeconomic unpredictabilities. For the complete year, she anticipates private property costs to drop by 3% to 5%.
” Last quarter, show flats were closed while home viewings were stopped throughout the Circuit Breaker period. Therefore, purchaser demand was restrained which will inevitably have a negative impact on residential property pricings,” stated Christine Sun, Head of Research and Consultancy at OrangeTee & Tie.
The COVID-19 pandemic has continued to impact the Singapore real estate market as private houses price tags succumbed to a 2nd consecutive quarter.
URA indicated that costs 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 fall 1.9%, a greater decline contrasted to the previous quarter’s 0.5% decrease.
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Price tags within the Outside Central Region, on the other hand, stood unchanged after recording a 0.4% fall in Q1.