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04-08-23, 10:06
Resale condo prices flat in June, volume down 19.7%: SRX, 99.co
Jul 28, 2023
SINGAPORE condominium resale prices were muted in June as sales activity slowed because of the school holidays. There were fewer home viewings, leading to a drop in deals closed.
Flash estimates from SRX and 99.co showed that overall resale prices inched up 0.1 per cent from the month before. This was the slowest pace of increase since July 2020, when prices rose 0.2 per cent.
Year on year, resale prices were up 8.5 per cent, the data released on Friday (Jul 28) showed. Resale volumes fell 19.7 per cent to 778 units resold in June, from 969 units resold in May. This was 31.1 per cent lower than in the corresponding period the year before, and 8.7 per cent lower than the five-year average volumes for the month of June.
Nearly half – 48.9 per cent – of resale volumes were for transactions in the Outside Central Region (OCR); 34.5 per cent were in the Rest of Central Region (RCR), and 16.6 per cent in the Core Central Region (CCR).
Resale prices in the CCR slipped by 2.6 per cent in June, while prices in the RCR rose 1.2 per cent and OCR rose 0.4 per cent. Year on year, all regions recorded price increases. The OCR rose 10.1 per cent, RCR gained 8.8 per cent and CCR added 3.2 per cent.
The growth in RCR and OCR prices indicated that many sellers held firm to their asking prices, said Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie. “The price expectation gap between buyers and sellers remains wide, as some buyers may expect prices to moderate after April’s cooling measures,” she added.
PropNex Realty’s head of research and content Wong Siew Ying noted that the condo resale market has been “decidedly quieter” since September 2022, when several cooling measures were implemented.
Meanwhile, Huttons Asia chief executive Mark Yip expects that robust resale transactions in the Housing and Development Board market would continue support activity in the condo resale market in July.
“With more supply completions coming up, we could possibly see some resale deals being done as new projects obtain the temporary occupation permit,” PropNex’s Wong said.
Subsale transactions, which are the secondary sale transactions that occur before a condo project is completed, comprised 7.9 per cent of total secondary sale transactions. This was 1.8 percentage points lower than the 9.7 per cent recorded in May, based on SRX and 99.co data.
The most expensive condo unit resold was at The Marq On Paterson Hill. It transacted at S$13 million. In the RCR, the highest transacted price was S$5 million for a Pebble Bay unit. In the OCR, the most expensive resale condo unit was in The Dairy Farm, which sold for S$3.6 million.
The overall median capital gain for resale condos was S$289,000 in June, down S$11,000 from the previous month.
District 15 (East Coast, Marine Parade) posted the highest median capital gain at S$648,000. District 1 (Boat Quay, Raffles Place, Marina) recorded a median capital loss of S$67,000. The overall median unlevered return for resale condos stood at 26.1 per cent, with District 15 posting the highest median unlevered return at 40.7 per cent and District 1 registering a median unlevered loss at 3.9 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 the rankings.
https://www.businesstimes.com.sg/property/resale-condo-prices-flat-june-volume-down-197-srx-99co
Jul 28, 2023
SINGAPORE condominium resale prices were muted in June as sales activity slowed because of the school holidays. There were fewer home viewings, leading to a drop in deals closed.
Flash estimates from SRX and 99.co showed that overall resale prices inched up 0.1 per cent from the month before. This was the slowest pace of increase since July 2020, when prices rose 0.2 per cent.
Year on year, resale prices were up 8.5 per cent, the data released on Friday (Jul 28) showed. Resale volumes fell 19.7 per cent to 778 units resold in June, from 969 units resold in May. This was 31.1 per cent lower than in the corresponding period the year before, and 8.7 per cent lower than the five-year average volumes for the month of June.
Nearly half – 48.9 per cent – of resale volumes were for transactions in the Outside Central Region (OCR); 34.5 per cent were in the Rest of Central Region (RCR), and 16.6 per cent in the Core Central Region (CCR).
Resale prices in the CCR slipped by 2.6 per cent in June, while prices in the RCR rose 1.2 per cent and OCR rose 0.4 per cent. Year on year, all regions recorded price increases. The OCR rose 10.1 per cent, RCR gained 8.8 per cent and CCR added 3.2 per cent.
The growth in RCR and OCR prices indicated that many sellers held firm to their asking prices, said Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie. “The price expectation gap between buyers and sellers remains wide, as some buyers may expect prices to moderate after April’s cooling measures,” she added.
PropNex Realty’s head of research and content Wong Siew Ying noted that the condo resale market has been “decidedly quieter” since September 2022, when several cooling measures were implemented.
Meanwhile, Huttons Asia chief executive Mark Yip expects that robust resale transactions in the Housing and Development Board market would continue support activity in the condo resale market in July.
“With more supply completions coming up, we could possibly see some resale deals being done as new projects obtain the temporary occupation permit,” PropNex’s Wong said.
Subsale transactions, which are the secondary sale transactions that occur before a condo project is completed, comprised 7.9 per cent of total secondary sale transactions. This was 1.8 percentage points lower than the 9.7 per cent recorded in May, based on SRX and 99.co data.
The most expensive condo unit resold was at The Marq On Paterson Hill. It transacted at S$13 million. In the RCR, the highest transacted price was S$5 million for a Pebble Bay unit. In the OCR, the most expensive resale condo unit was in The Dairy Farm, which sold for S$3.6 million.
The overall median capital gain for resale condos was S$289,000 in June, down S$11,000 from the previous month.
District 15 (East Coast, Marine Parade) posted the highest median capital gain at S$648,000. District 1 (Boat Quay, Raffles Place, Marina) recorded a median capital loss of S$67,000. The overall median unlevered return for resale condos stood at 26.1 per cent, with District 15 posting the highest median unlevered return at 40.7 per cent and District 1 registering a median unlevered loss at 3.9 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 the rankings.
https://www.businesstimes.com.sg/property/resale-condo-prices-flat-june-volume-down-197-srx-99co