Singapore’s property market caught its first chill from the coronavirus with quarterly private home prices declining for the first time in a year, but market watchers said they are not expecting a sharp fall in prices going forward.
According to flash data from the Urban Redevelopment Authority (URA) on Wednesday (April 1), prices of private residential properties dropped 1.2 per cent in the first three months of the year from the previous quarter.
It is the first quarterly drop since prices declined 0.7 per cent in the first quarter of last year. Private home prices rose 2.7 per cent last year in a modest recovery from the July 2018 cooling measures, with prices up 0.5 per cent in the final quarter of 2019.
The quarter-on-quarter fall in prices was broad-based, across both landed (-1.7 per cent) and non-landed (-1 per cent) segments. It was also across all regions. Prices of non-landed homes in the prime areas or core central region (CCR) fell by 1.5 per cent, prices in the city fringes or rest of central region (RCR) dipped by 0.5 per cent, while those in the outlying areas or outside central region (OCR) declined by 1 per cent.
Year-on-year, overall property prices are still up 2.2 per cent.
Market watchers said the impact of Covid-19 on the property market as Singapore heads into a recession will depend highly on how long the outbreak lasts and when it will be contained, while noting the hefty support from the Resilience Budget which should help stem job losses and just-announced consumer loan relief measures.
The property market will likely keep afloat as long as unemployment remains low and people are able to service their mortgages, said Ms Christine Sun, head of research and consultancy at OrangeTee & Tie.
Ms Sun said she is not expecting dramatic price corrections in the coming months despite the worsening Covid-19 outbreak. “Many property measures have already been put in place over the past years to ensure financial prudence among buyers. The possibility of many homeowners slashing prices or defaulting on housing loans is not high,” she said.
Having learnt from past financial crises, deeper-pocketed developers may not see a need to adjust prices drastically now, as their balance sheets are still relatively healthy, added Ms Sun.
Mr Wong Xian Yang, Cushman & Wakefield’s senior manager for research, Singapore and South-east Asia, said prices may prove to be more resilient as compared to previous recessions. During the 2008-2009 Global Financial Crisis, for example, overall property prices fell by 24.9 per cent over four consecutive quarters.
He noted the latest measures allowing eligible individuals to apply to defer their property loan payments up to the end of 2020. “This indirectly helps support current prices as property owners have more breathing space to navigate any cashflow difficulties,” he said.
He added: “For now, fire sales are not expected, as unemployment rates remain relatively low and most property owners are not under huge pressure to sell. Furthermore, the majority of property sales over the last few years have been driven by local owner occupiers and investors, the majority of which are holding for the long term.
“Furthermore, if prices show signs of spiraling downwards, the government can potentially ease cooling measures to stimulate demand. As such, we may not see a sharp drop in prices like in previous recessions.”
Mr Ismail Gafoor, CEO of PropNex Realty, said that under current market sentiment, he is expecting property prices to drop by 2 per cent to 3 per cent this year. Genuine buyers will take advantage of the “silver lining” of lower interest rates to pick up “rightly priced” projects, he said. The Singapore inter-bank offered rate (Sibor), to which many home loans are pegged, has plunged in recent weeks in response to the US Federal Reserve’s emergency moves to slash its key rate to near zero.
Mr Desmond Sim, CBRE’s head of research, South-east Asia, said prices could correct by 5 per cent to 8 per cent in 2020, given the 1 per cent to 4 per cent economic contraction officially forecast . “While we expect demand for housing to remain, current economic sentiments may put some buyers’ decision on hold,” he said.
He said his forecast is also based on the view that the CCR, where homes are most expensive, might see larger adjustments due to the high inventory of project launches for sale, and the slowdown of Chinese home buyers. He also expects developers “to be more flexible in their pricing expectations”, especially when showflats would fall under enhanced social distancing measures.
The URA cautioned that the flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-March. Past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small, it said. It thus advised the public to interpret the flash estimates with caution.
The data will be updated on April 24 when URA releases its full set of real estate statistics for the first quarter.
<credit to The Straits Times>
Other Popular Search Terms
affordable condo in singapore bangkok bangkok cbd new condo bangkok new launch Bangkok property Bukit timah cambodia capitaland CDL condo near mrt district 09 district 10 district 14 district 15 District 19 district 21 east coast Freehold freehold condo freehold condo singapore geylang high rental yield IDEO Q Katong MRT near MRT orchard overseas overseas property overseas property investment Oxley singapore singapore condo singapore freehold singapore new condo singapore new condo 2018 singapore new condo 2019 singapore new condo 2020 Singapore new condo 2021 telok kurau thailand TOP 2021 TOP 2022 top 2023 TOP 2024
Other Recent New Launches
- Mori @Guillemard RoadMori @GuillemardFreehold. City Fringe. Walk to 3 MRTs Expected Launch Price $18xx psf Only √ Short drive away Suntec City/ Raffles Places/ River Valley√ A FREEHOLD DEVELOPMENT√ 6- 7 mins Walk to Mountbatten, Aljunied & Dakota MRTs√ Strategic Location in between 2 Keys Transformation Areas -Paya Lebar & Kallang√ Good schools within 1KM including Kong Hwa, Geylang Methodist√ Growth Potential & […]
- Jervois MansionJervois Mansion Freehold • District 10 • GCBs & Embassies as neighbours Attractive Price for Freehold at D101-bedroom 495sf fr $1,194,000 / $2,411 psf2-bedroom 678-786sf from $1,611,000 / $2,215 psf3-bedroom 1001-1023sf from $2,265,000 / $2,215 psf4-bedroom 1475-1539sf from $3,500,000 / $2,349 psf5-bedroom 1,808sf from $4,289,000 / $2,377 psf √ Sitting on a rare freehold site, yours […]
- Parkwood CollectionParkwood Collection ⭐TOP Q4 2022⭐✔ More space for family, work, or play? Parkwood Collection gives you that flexibility. Unfold more possibilities in life. Strata Landed property, Parkwood Collection, comes with facilities such as gym, BBQ pit and swimming pool 🔹Total Unit: 53 Exclusive units🔹3 Storey + Basement + Roof Terrace + Lift🔹5 Spacious Bedrooms🔹 Min size starting from […]
- Citrine Foodland⭐CITRINE FOODLAND is Suitable for CENTRAL KITCHEN/ FOOD PROCESSING/ COLD ROOM/ STORAGE⭐ FREEHOLD! FREEHOLD! FREEHOLD!Uplift your business to new heights ✔ A Rare FREEHOLD Food Factory🚇 Just 8 mins to Tai Seng MRT🏭 Approved B2 Food Factory 🍔 Suitable for Central Kitchens, bakery and food packaging etc. 🍿Built for the daily biz operational needs of Food Factory […]
- Klimt Cairnhill康邻豪庭 Klimt Cairnhill (Former Cairnhill Mansions) ⭐ATTRACTIVE PRICE GUIDE⭐▪️2 br #xx-04 (829sf) $2,936,000▪️2+S #xx-05 (893sf) $3,238,000▪️3 br #xx-02 (1432sf) $5,395,000 ▪️3 brP #xx-03 (1496sf) $5,695,000▪️4 br #xx-01 (2056sf) $7,705,000▪️4 br #xx-03 (2368sf) – $10,630,000 (29th – 35th floor. 7 units only!)▪️Single Lvl PH (4898 sft) POA▪️Duplex PH (5920 sft) POA ✔ A FREEHOLD LUXURY DEVELOPMENT in the […]
- The Commodore CanberraThe Commodore at Canberra 𝐏𝐨𝐬𝐬𝐢𝐛𝐥𝐲 𝐭𝐡𝐞 𝐥𝐚𝐬𝐭 𝐚𝐟𝐟𝐨𝐫𝐝𝐚𝐛𝐥𝐞 𝐧𝐞𝐰 𝐥𝐚𝐮𝐧𝐜𝐡 𝐰𝐢𝐭𝐡 𝐥𝐞𝐬𝐬 𝐭𝐡𝐚𝐧 𝟐 𝐦𝐢𝐧𝐮𝐭𝐞𝐬 𝐰𝐚𝐥𝐤 𝐭𝐨 𝐂𝐚𝐧𝐛𝐞𝐫𝐫𝐚 𝐌𝐑𝐓!⭐Price Star from $7xx K!!⭐ 💎Developed by JBE Holdings💎🏆 Exclusive development with only 219 units🏆 Beautiful and Efficient layouts with 1BR to 5BR (with Private lift) units🏆 Close proximity to plenty of amenities, eateries, education institutions & amenities shopping […]
- Watergardens at CanberraWatergardens at CanberraJust Awarded!!Asia Pacific Property Awards Architecture 2021-2022 WhatsApp for Viewing ⭐Attractive Launch Price Guide fr $13xx psf, 60% Sold in 1 Day⭐2BR 678sf fr $919 K2BR Premium 753sf fr $1.075 mil3BR 958sf fr $1.34 mil3BR Premium 1109sf fr $1.56 mil4BR Premium 1302sf fr $1.83 mil 16 BLOCKS OF 5-STOREY448 UNITS + 1 CHILDCARE CENTREEst Preview […]
- Bartley VueBartley Vue5 mins walk to Bartley MRT ⭐30% Sold on 1st Day!! Attractive Launch Price fr $17xx psf⭐2 BR 1Bath 657sf From $1,324,000 (South Facing)2 BR 2Bath 732sf From $1,350,000 (North Facing)3 BR 947sf From $1,657,000 (South Facing) 3 BR Premium 1044-1066sf From $1,812,000 (North Facing)4 + Study 1356sf From $2,315,000 A 𝐌𝐚𝐬𝐭𝐞𝐫𝐩𝐢𝐞𝐜𝐞 by Wee Hur Holdings. […]