House Prices Growth in Singapore Continues to Slow Down
House prices grew by at least 0.7 percent Y-o-y in Q3 2020.
Singapore’s real house prices grew by 0.7 percent during the year to Q3 2020, with annual increases of 1.74 percent in Q2 and 2.4 percent in Q1. Furthermore, house prices growth rose slightly by 0.18 percent over the last quarter.
In continuance, we also saw house prices grow in national prices by 12% (inflation-adjusted) from 2016 to 2019. Falling by almost 10% in the previous three years.
Demand is rising again; supply is steady.
ACCORDING TO THE URBAN REDEVELOPMENT AUTHORITY, in Q3 2020, total home sales, including new sales, sub-sales, and resales, saw house prices grow by 22.3 percent to 7.047 units, after a drop of 44.1 percent in the previous quarter. Despite the sharp improvement in Q3, total home sales decreased by 2 percent. Close to, 13,980 units in the first nine months of 2020 after falling by 13.5 percent in 2019 and 11.5 percent in 2018.
Singapore’s vacancy rate in Q3 2020 was 6.2 percent, with a house prices growth from 5.4 percent in the previous quarter. With a total of 375,156 housing units available in Singapore (up only 0.1 percent from the previous quarter), 351,985 units are occupied, while the remaining 23,171 units are available, according to URA.
Rents, rental income: Singapore yields are poor at 3.3 percent.
Singapore’s apartment costs are high, at around $14,373 per square. m.
The latest news. Singapore’s economy shrank by 5.8 percent year-on-year in Q3 2020. Following a massive contraction of 13.3 percent in Q2 and another 0.3 percent in Q1. The coronavirus crisis slowing down house prices growth. On a seasonally adjusted quarterly basis, the economy grew by 9.2 percent in Q3. The highest growth recorded after a 13.2 percent slump in the previous quarter.
The Ministry of Trade and Industry (MTI) expects the economy to contract by about 6% to 6.5% this year. With a turn of rebounding by around 4% to 6% in 2021.
Singapore’s house price growth continues to slow down