Singapore markets closed

Singapore home prices fall as coronavirus batters economy

Modern and luxury smart homes in Singapore at Keppel Bay Yacht Marina area in the city centre. (PHOTO: Getty Creative)

By Faris Mokhtar

(Bloomberg) -- Singapore home prices fell in the first quarter as the coronavirus outbreak sent the economy into its steepest contraction in a decade.

Property values declined 1.2% in the three months ended March 31, according to a preliminary estimate from the Urban Redevelopment Authority released Wednesday. That compares to a 0.5% gain in the fourth quarter.

With the city-state limiting gatherings to a maximum 10 people, the new social-distancing rules have also affected sales of some new units, with agents unable to conduct as many viewings as they normally could. The number of agents stationed at showflats has also been reduced. In the resale market, some owners have also turned away potential buyers out of fear that they could pass on the virus.

Bracing for an economic contraction that could be the worst since independence in 1965, the government last week unveiled a second stimulus package that boosted assistance to the equivalent of 11% of gross domestic product.

© 2020 Bloomberg L.P.