_Residential Market Update Q2 2020

URA Flash Estimates

The Property Price Index (PPI) for nonlanded private residential properties decreased by 0.6% quarter-on-quarter (q-o-q) to 147.2 in Q2 2020, bringing the decline in the first half of 2020 to 1.6%.

Despite the restrictions on physical viewings and the closure of showflats for most of Q2 2020, there were 2,253 transactions of non-landed private homes (excluding Executive Condominiums (ECs) lodged in the quarter*. While transaction volumes were much lower, falling 40.5% q-o-q against Q1 2020, the sales activity showed that some buyers had adapted to these unprecedented conditions. Of the 2,253 transactions, about 70.6% or 1,591 were new sale transactions, with the remaining 662 being secondary sale transactions.

Market Outlook

While Q2 2020 was mostly characterised by the imposition of circuit breaker measures that disrupted real estate activities, the progressive lifting of restrictions and the resumption of human activity is expected to contribute to a pickup in sales activity for the rest of the year. Thus, new sale volumes are forecasted to reach around 6,000 to 7,000 units for the whole of 2020.

Nevertheless, with recessionary pressures weighing heavily on and affecting all sectors of the economy, the URA’s non-landed price index is likely to drop by about 5% for 2020 depending on the extent of Singapore's economic contraction.

Analysis on residential properties in the Core Central Region, Outside Central Regiom and Rental Movements are revealed in the full report.

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