October 12, 2021

Condo resale prices up for 14th straight month as volume dips in September: SRX

By ellen

SINGAPORE – Prices of resale non-landed private homes in September climbed for the 14th consecutive month, even as fewer units changed hands, according to flash figures from real estate portal SRX on Tuesday (Oct 12).

Condominium resale prices rose 1 per cent month on month, faster than the 0.5 per cent gain in August, SRX data showed.

Year on year, resale prices were up 8.9 per cent from September 2020.

However, resale volume dipped in September, with an estimated 1,736 units transacted last month, a 3.8 per cent drop from 1,805 units in August.

This could be due to the Hungry Ghost Festival, when sales typically slow down, ending in early September, and curbs on property viewings, which were limited to two visitors per house per day from Sept 27, said Ms Christine Sun, senior vice-president of research and analytics at real estate firm OrangeTee & Tie.

Still, resale transactions were 35.9 per cent higher than in September last year, and 84.1 per cent above the five-year average volume for the month of September.

This indicates that demand is still at a “healthy level,” said Ms Sun.

Most of the resales were units in the suburbs, representing 60.3 per cent of total volume for the month.

About 23.5 per cent of transactions were in the city fringes, with the remaining 16.2 per cent in central Singapore.

Month on month, homes in the city fringes enjoyed the biggest price increase of 1.7 per cent.

Prices in central Singapore went up by 1.1 per cent while homes in the suburbs saw prices edged up by 0.6 per cent.

Year on year, all three regions recorded price increases, with central Singapore leading at 9.1 per cent, the suburbs at 9 per cent and city fringes at 8.6 per cent.

OrangeTee’s Ms Sun said the broad-based price increase of around 9 per cent for all three segments indicates that buyers were generally willing to pay more for resale condos this year as condo supply wanes in light of buoyant demand.

“Market sentiment is likely to remain positive as Singapore is embarking on the endemic road map and more restrictions are expected to be lifted in the coming months,” she said.

More foreign buyers are likely to enter the private property market in Singapore as more Vaccinated Travel Lanes are set up, she added.

Said Ms Sun: “Although we may not see an immediate spike in foreign purchases as the additional buyer’s stamp duty is still in place, the transaction volume for foreign buyers is likely to be higher than last year. We may also see more PRs and Singaporeans returning which may help lift the resale market.”

The highest transacted price for a resale condo unit last month was $26.3 million for a unit at Le Nouvel Ardmore, a freehold condo in the District 10 Tanglin area.

In the city fringes, the highest transacted price was $7.5 million for a 99-year leasehold apartment at Reflections at Keppel Bay in HarbourFront.

In suburban areas, a unit in 99-year leasehold condo Mandarin Gardens at Siglap Road sold for $4.1 million.