Singapore-based property consultant EDMUND TIE & Company has reported that overall private home prices in Singapore fell by 1.0% quarter-on-quarter (q-o-q) in Q1 2020, according to their URA All Residential Property Price Index.

The decline in prices came amid the pandemic and economic slowdown, dampening market sentiment and leaving muted demand for homes as local homebuyers held back their purchase plans to assess their financial positions.

Additionally, the pandemic led to lockdowns in many countries, restricting short-term visitors and potential foreign homebuyers entering Singapore. As the number of new cases of COVID-19 heightened in March 2020, the country increased restrictions on mobility in Singapore, such as social distancing and caps on the number of visitors to residential show flats, which reduced purchasing and leasing activities.

Total homes sales declined for the second consecutive quarter by 14.4% q-o-q to 4,174 homes in Q1 2020, the lowest since Q1 2019, when total sales amounted to 3,743 units.

In terms of price range, the bulk or 46% of the transactions were in the $1m to $1.5m price band in Q1 2020, a 5 percentage point increase from Q4 2019. The majority of transactions in this price band were for new sale units in districts 5, 7, 14 and 19.