Singapore’s property market recovery came to an abrupt halt amid the global pandemic and growing macroeconomic uncertainties. According to the Urban Redevelopment Authority’s (URA) real estate statistics, the overall price index for private homes slipped 1.0 per cent quarter-on-quarter (q-o-q) in Q1 2020, after rising three consecutive quarters. Year on year (y-o-y), the index was up 2.4 per cent (see chart).

While prices slipped last quarter at the onset of the pandemic, the magnitude of decline was not as severe as what was observed during the early stages of past crises. For instance, around the initial phase of the Asian Financial Crisis, the first quarterly decline of 1.9 per cent was recorded in Q3 1996, while prices first dipped 2.4 per cent in Q3 2008 during the Global Financial Crisis.

Against the backdrop of the current macroeconomic uncertainties, many sectors will not be able to escape the pandemic unscathed. Nevertheless, an unprecedented amount of stimulus had been pumped in by many nations to rescue jobs and keep economies afloat.

Although the long-term effects of the coronavirus pandemic remain uncertain, the bright side is that Singapore’s property market has always recovered after every economic crisis. Buying activities could pick up faster than other downturns given the pent-up demand from many weeks of home isolation.

Click here for the full report “OrangeTee – Private Residential Market Report for Q1 2020”