Singapore’s property market remained stable despite the outbreak of coronavirus. In the last quarter, private home prices edged up 0.3%, month-on-month increase in the 2nd quarter. According to the latest report from Urban Redevelopment Authority, the overall price trend of private homes had a surprise turnaround from an initial flash estimate in early July which had the private residential property index declining by 1.1%.
In Q2, primary sales market had a total of 1,713 transactions, a decline of about 20% compared with 2,149 transactions in Q1. The resale market recorded a total of 933 transactions in Q2, a decline of more than 50% from the 2,080 transactions recorded in Q1. This could be due when Singapore’s “circuit breaker” took place. With the reopening of showflats and property agents following safety measures, the outlook of private residential market is expected to be positive in the 2nd half of the year.
Despite being affected by the “circuit breaker”, primary sales market transaction volume declined by 20% but private home prices rose by 0.3% month-on-month, reflecting a healthy buying interest in the private residential sector.
By location, prices of non-landed properties in the core central region (CCR) rose 2.7% in Q2, reversing from a 2.2% decrease in the previous quarter. Meanwhile, prices of non-landed properties in the rest of the central region (RCR) fell by 1.7%, sharper than the 0.5% decrease in the prior quarter. Outside the central region (OCR), prices went up marginally by 0.1%, compared with the 0.4% decrease in the previous quarter.
With the growing number of transactions as well as relative price stability, this may prompt developers to launch more new projects in the next couple of months. Ten new residential projects with a total of 2,700 units located in the RCR area are expected to launch in the next few months.
Centaline Property expects that sales may be driven by some developers offering discounts and incentives, which will help continue the upward trend in the property market. Transaction volume is expected to increase to about 700 to 800 units per month at the beginning of the year, or even higher.