New Reporter
28-06-23, 11:58
Condo resale prices, volumes rise at a slower pace in May: SRX, 99.co
Jun 28, 2023
CONDOMINIUM rental prices and volumes continued to rise in May, albeit at a slower pace, flash estimates from SRX and 99.co indicated.
Many owners and investors also sold their condos before receiving their official certificate of completion during the month, the data, released on Tuesday (Jun 27), showed.
Overall resale prices rose 0.9 per cent from April and were up 9.2 per cent year on year.
However, not all regions registered price increases. The Core Central Region (CCR) and Outside Central Region (OCR) rose 1.7 per cent and 1.6 per cent, respectively, while prices in the Rest of Central Region (RCR) slid 0.3 per cent.
Year on year, resale prices for all regions rose. The OCR experienced the largest gain at 9.9 per cent, followed by the RCR at 9.6 per cent and the CCR at 7.1 per cent.
In terms of resale volumes, around 946 units changed hands in May, up 8.9 per cent from the 869 units resold in April. Volumes, however, were 18.8 per cent lower year on year and 4.2 per cent lower than the five-year average volumes for the month of May.
By region, around half or 50.7 per cent of resale transactions took place in the OCR, followed by 31.8 per cent in the RCR and 17.5 per cent in the CCR.
“Several successful new launches may have also reignited the buying interest in the secondary market, especially for affordable resale alternatives in the vicinity,” said Christine Sun, OrangeTee & Tie senior vice-president of research and analytics.
In contrast, ERA Realty’s key executive officer Eugene Lim believes some of the attention in the RCR resale market was likely drawn away by the new condo launch of Far East Organization’s The Reserve Residences.
Homebuyers could also be choosing new launches over resale in view of high interest rates, as mortgage payments for new launches tend to be staggered over time due to the progressive payment scheme.
The payments rise more gradually, in tandem with the new project hitting certain construction milestones, noted Wong Siew Ying, PropNex Realty’s head of research and content.
“Buyers of resale properties face the full brunt of the high mortgage rates once the purchase is made,” Wong said.
Subsale transactions take off
The percentage of sub-sale transactions versus total resale transactions stood at 8.6 per cent in May – the second-highest month recorded since a historic low of 0.7 per cent recorded in October 2020.
Sub-sale transactions refer to secondary sale transactions that occur before a condo project is completed.
“Typically, a buyer would sell his incomplete condo for capital gains, liquidity or when the waiting period is too long,” said Luqman Hakim, 99.co’s chief data and analytics officer.
Buyers will also sell their incomplete condos if they are unable to make further loan repayments as mortgage interest rates rise, although reselling a condo within three years incurs seller’s stamp duty, he added.
Huttons Asia chief executive Mark Yip noted that buyers may opt for subsale units to save on renovation costs which can be substantial in older resale units.
The most expensive condo unit resold in May was S$14.1 million for a unit at Yong An Park. The highest transacted price in the RCR was S$13.2 million for a unit at Aalto and S$3.7 million for an Ocean Park unit in the OCR.
The overall median capital gain for resale condos was S$308,000 in May, a S$2,000 decrease from the previous month.
District 9 (Orchard, River Valley) posted the highest median capital gain at S$697,000, while District 1 (Boat Quay, Raffles Place) registered a median capital loss of S$72,000.
The overall median unlevered return for resale condos stood at 27.7 per cent, with District 16 (Bedok, Upper East Coast) posting the highest median unlevered return at 41.7 per cent, and District 1 posted a median unlevered loss of 2.8 per cent.
SRX and 99.co calculate the capital gains and returns of a condo resale unit by comparing the current and previous transacted prices of the same unit. Districts with fewer than 10 matching transactions are omitted from rankings.
https://www.businesstimes.com.sg/property/condo-resale-prices-volumes-rise-slower-pace-may-srx-99co
Jun 28, 2023
CONDOMINIUM rental prices and volumes continued to rise in May, albeit at a slower pace, flash estimates from SRX and 99.co indicated.
Many owners and investors also sold their condos before receiving their official certificate of completion during the month, the data, released on Tuesday (Jun 27), showed.
Overall resale prices rose 0.9 per cent from April and were up 9.2 per cent year on year.
However, not all regions registered price increases. The Core Central Region (CCR) and Outside Central Region (OCR) rose 1.7 per cent and 1.6 per cent, respectively, while prices in the Rest of Central Region (RCR) slid 0.3 per cent.
Year on year, resale prices for all regions rose. The OCR experienced the largest gain at 9.9 per cent, followed by the RCR at 9.6 per cent and the CCR at 7.1 per cent.
In terms of resale volumes, around 946 units changed hands in May, up 8.9 per cent from the 869 units resold in April. Volumes, however, were 18.8 per cent lower year on year and 4.2 per cent lower than the five-year average volumes for the month of May.
By region, around half or 50.7 per cent of resale transactions took place in the OCR, followed by 31.8 per cent in the RCR and 17.5 per cent in the CCR.
“Several successful new launches may have also reignited the buying interest in the secondary market, especially for affordable resale alternatives in the vicinity,” said Christine Sun, OrangeTee & Tie senior vice-president of research and analytics.
In contrast, ERA Realty’s key executive officer Eugene Lim believes some of the attention in the RCR resale market was likely drawn away by the new condo launch of Far East Organization’s The Reserve Residences.
Homebuyers could also be choosing new launches over resale in view of high interest rates, as mortgage payments for new launches tend to be staggered over time due to the progressive payment scheme.
The payments rise more gradually, in tandem with the new project hitting certain construction milestones, noted Wong Siew Ying, PropNex Realty’s head of research and content.
“Buyers of resale properties face the full brunt of the high mortgage rates once the purchase is made,” Wong said.
Subsale transactions take off
The percentage of sub-sale transactions versus total resale transactions stood at 8.6 per cent in May – the second-highest month recorded since a historic low of 0.7 per cent recorded in October 2020.
Sub-sale transactions refer to secondary sale transactions that occur before a condo project is completed.
“Typically, a buyer would sell his incomplete condo for capital gains, liquidity or when the waiting period is too long,” said Luqman Hakim, 99.co’s chief data and analytics officer.
Buyers will also sell their incomplete condos if they are unable to make further loan repayments as mortgage interest rates rise, although reselling a condo within three years incurs seller’s stamp duty, he added.
Huttons Asia chief executive Mark Yip noted that buyers may opt for subsale units to save on renovation costs which can be substantial in older resale units.
The most expensive condo unit resold in May was S$14.1 million for a unit at Yong An Park. The highest transacted price in the RCR was S$13.2 million for a unit at Aalto and S$3.7 million for an Ocean Park unit in the OCR.
The overall median capital gain for resale condos was S$308,000 in May, a S$2,000 decrease from the previous month.
District 9 (Orchard, River Valley) posted the highest median capital gain at S$697,000, while District 1 (Boat Quay, Raffles Place) registered a median capital loss of S$72,000.
The overall median unlevered return for resale condos stood at 27.7 per cent, with District 16 (Bedok, Upper East Coast) posting the highest median unlevered return at 41.7 per cent, and District 1 posted a median unlevered loss of 2.8 per cent.
SRX and 99.co calculate the capital gains and returns of a condo resale unit by comparing the current and previous transacted prices of the same unit. Districts with fewer than 10 matching transactions are omitted from rankings.
https://www.businesstimes.com.sg/property/condo-resale-prices-volumes-rise-slower-pace-may-srx-99co