Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1}

Commentary on URA Q2 2020 Private Residential Statistics

Xian Yang Wong • 28/07/2020

Private residential prices rose by 0.3% qoq in Q2 2020, differing from earlier flash estimates of -1.1% qoq. The change in trend can be attributed to increased sales activity post circuit breaker in June, after two consecutive months of muted sales in April and May. As expected, Q2 2020 volumes fell to 2,664 units, which translates to a fall of 37.6% qoq and a fall of 44.1% yoy.

The rise in prices can be attributed to the CCR and the OCR, which both rose by 2.7% qoq and 0.1% qoq. On the other hand, RCR fell by -1.7% qoq. However, the rise in prices this quarter may be skewed towards new sales due to the unique circumstances of the circuit breaker where movement was restricted and property viewings could not be carried out. As such, resale volumes plunged in Q2 2020, and sales was dominated by new sales which took up 64.3% of total Q2 sales. The proportion of new sales over total sales in Q2 2019 was only 49.4%. New launches tend to be priced at a premium over the resale market due to their lower quantum (smaller size) and new fit-outs.

Private residential rents fell by 1.2% qoq, as landlords lowered their rental expectations given the unique circumstances of the circuit breaker. Nonetheless, occupancy rates remained stable at 94.6%. We expect rents to continue to fall for the rest of 2020. Although new supply remains tight, rental demand is expected to fall amidst rising unemployment rates, on-going travel restrictions and companies focusing on cost containment.

Going forward, prices are expected to trend lower, albeit at a gradual pace as market activities return to norm amidst weakening market conditions. Given ample government support, we do not foresee widespread fire sales, although opportunistic deals may surface as some owners wish to free up cashflow. Most developers have healthy balance sheets and do not face pressure from ABSD deadlines in 2020 and 2021. The circuit breaker measures may also allow them to seek for an extension of ABSD deadlines. This would allow them to better manage their unsold inventory and manoeuvre through this challenging period. 

The long term fundamentals of the Singapore private residential market remain unchanged, and the Singapore private property market is still viewed favourably by both local and foreigners. Many are waiting on the sidelines for prices to correct further. As such, we expect prices to fall by -6% to -3% for the whole of 2020.


Visit our MarketBeat page to download the full residential report and other sector reports.



Related Insights

card image
Insights • Sustainability

Banking on Green Office Buildings in Singapore

Does sustainability pay? We think it does help performance.
Xian Yang Wong • 21/11/2022
Cushman & Wakefield Q2 Asia Pacific Webinar: Spotlight on Singapore
Insights • Investment

Cushman & Wakefield Q2 Asia Pacific Webinar: Spotlight on Singapore

As Asia Pacific begins to show signs of recovery from COVID-19, led by a rebound originating from China, what is the current status of the commercial real estate market and where is it headed?
Anna Town • 13/08/2021

Related Stories

Dexcom Philippines New Office Fit-out Project
Dexcom Philippines • Healthcare
Learn More
Cushman & Wakefield Stories Philippines Inc. • Travel
Learn More
Cushman & Wakefield Stories
OMD Philippines • Advertising
Learn More
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All