Private home prices slid 1.1% in Q2: URA

This represents a second consecutive quarter decline in the prices of private homes.

The private residential property price index in Q2 slid 1.1% to 150.4 points from 152.1 points in the previous quarter, according to the Urban Redevelopment Authority’s (URA) flash estimates.

This represents a second consecutive quarter decline in the prices of private homes in Singapore, along with the 1% decline in Q1. According to OrangeTee & Tie head of research and consultancy Christine Sun, this is due to show flats being closed as house viewings were banned during the circuit breaker period, thus suppressing buyer demand and negatively affecting home prices.

“However, it could be too early to conclude that this is the beginning of a sustained period of price declines. We should be cautious in interpreting the price dips in a volatile market, particularly when sales volume is low,” she added.

Furthermore, there is said to be sporadic evidence of 'green shoots' in certain market segments and some buyers were snapping up relatively good bargains in the market over the past few weeks. Therefore, the price trends could be distorted by some of these properties or special priced units.

URA flash estimates also revealed that condo prices in the Core Central Region (CCR) inched down by 0.1%, compared to the 2.2% fall in Q1. Prices in the Rest of Central Region (RCR) also dipped 1.9% after its 0.5% dip in the previous quarter.

Lastly, prices in the Outside Central Region (OCR) remained unchanged, compared to the 0.4% decrease in the previous quarter.

Sun added that the property market should be observed for a few more quarters to ascertain if prices have bottomed, as prices of homes may remain soft in the coming months given the macroeconomic uncertainties. Private home prices are anticipated to trend between -5% and -3% for the full year.