New Reporter
04-09-23, 14:52
Condo resale prices continue to soften in July, volumes rise: SRX, 99.co
Aug 29, 2023
SINGAPORE condominium resale prices continued to soften in July, although volumes rose slightly as buyers brought forward their home purchases ahead of the Hungry Ghost Festival.
Overall resale prices dipped 0.2 per cent from the month before but were up 7.4 per cent on the year, flash estimates from SRX and 99.co released on Tuesday (Aug 29) indicated.
Although prices were down for the second straight month, the price drop is “too marginal to be considered a price correction”, noted Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie.
She said this could be an early sign of price stabilisation, an opinion shared by PropNex Realty’s head of research and content, Wong Siew Ying.
“We think private home prices are likely peaking and should continue to stabilise – demonstrating the efficacy of recent rounds of cooling measures in December 2021, September 2022, and April 2023,” Wong said.
The number of resale units that changed hands stood at 836 units, up 4 per cent from 804 units in June. Year on year, resale volumes were 17.7 per cent lower on the year and 17.6 per cent lower than the five-year average volumes for the month of July.
“Competition from recent new launches may also explain the tepid increase,” said Luqman Hakim, 99.co chief data and analytics officer.
By region, only resale prices in the Core Central Region (CCR) rose, gaining 1.1 per cent month on month. Prices in the Rest of Central Region (RCR) and Outside Central Region (OCR) fell 0.2 per cent, each.
Prices rose in all regions year on year, with the OCR leading gains at 9 per cent, followed by the RCR, which rose 8.4 per cent and the CCR, which grew 3.7 per cent.
More than half (52.2 per cent) of resale volumes in July were from the OCR, followed by 29.5 per cent from the RCR and 18.3 per cent from the CCR.
Subsale transactions – secondary sale transactions that occur before a condo project is completed – comprised 9.2 per cent of total secondary sale transactions.
The highest transacted price was S$18 million for a Beverly Hill resale unit. In the RCR, the most expensive unit resold was located at Pebble Bay, which changed hands for S$9 million. In the OCR, the highest transacted price was S$4.2 million for a unit at The Petals.
The overall median capital gain for resale condos was S$310,000 in July, up S$20,000 from the previous month.
District 10 (Tanglin, Holland) posted the highest median capital gain at S$840,000, while District 2 (Chinatown, Tanjong Pagar) recorded the lowest median capital gain at S$134,000.
The overall median unlevered return for resale condos was 26.9 per cent in July.
District 23 (Bukit Batok, Bukit Panjang, Choa Chu Kang) posted the highest median unlevered return at 50.7 per cent, while District 9 (Orchard, River Valley) recorded the lowest median unlevered return at 13.8 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 the rankings.
https://www.businesstimes.com.sg/property/condo-resale-prices-continue-soften-july-volumes-rise-srx-99co
Aug 29, 2023
SINGAPORE condominium resale prices continued to soften in July, although volumes rose slightly as buyers brought forward their home purchases ahead of the Hungry Ghost Festival.
Overall resale prices dipped 0.2 per cent from the month before but were up 7.4 per cent on the year, flash estimates from SRX and 99.co released on Tuesday (Aug 29) indicated.
Although prices were down for the second straight month, the price drop is “too marginal to be considered a price correction”, noted Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie.
She said this could be an early sign of price stabilisation, an opinion shared by PropNex Realty’s head of research and content, Wong Siew Ying.
“We think private home prices are likely peaking and should continue to stabilise – demonstrating the efficacy of recent rounds of cooling measures in December 2021, September 2022, and April 2023,” Wong said.
The number of resale units that changed hands stood at 836 units, up 4 per cent from 804 units in June. Year on year, resale volumes were 17.7 per cent lower on the year and 17.6 per cent lower than the five-year average volumes for the month of July.
“Competition from recent new launches may also explain the tepid increase,” said Luqman Hakim, 99.co chief data and analytics officer.
By region, only resale prices in the Core Central Region (CCR) rose, gaining 1.1 per cent month on month. Prices in the Rest of Central Region (RCR) and Outside Central Region (OCR) fell 0.2 per cent, each.
Prices rose in all regions year on year, with the OCR leading gains at 9 per cent, followed by the RCR, which rose 8.4 per cent and the CCR, which grew 3.7 per cent.
More than half (52.2 per cent) of resale volumes in July were from the OCR, followed by 29.5 per cent from the RCR and 18.3 per cent from the CCR.
Subsale transactions – secondary sale transactions that occur before a condo project is completed – comprised 9.2 per cent of total secondary sale transactions.
The highest transacted price was S$18 million for a Beverly Hill resale unit. In the RCR, the most expensive unit resold was located at Pebble Bay, which changed hands for S$9 million. In the OCR, the highest transacted price was S$4.2 million for a unit at The Petals.
The overall median capital gain for resale condos was S$310,000 in July, up S$20,000 from the previous month.
District 10 (Tanglin, Holland) posted the highest median capital gain at S$840,000, while District 2 (Chinatown, Tanjong Pagar) recorded the lowest median capital gain at S$134,000.
The overall median unlevered return for resale condos was 26.9 per cent in July.
District 23 (Bukit Batok, Bukit Panjang, Choa Chu Kang) posted the highest median unlevered return at 50.7 per cent, while District 9 (Orchard, River Valley) recorded the lowest median unlevered return at 13.8 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 the rankings.
https://www.businesstimes.com.sg/property/condo-resale-prices-continue-soften-july-volumes-rise-srx-99co