New Reporter
27-09-23, 10:12
Condo resale prices reverse slide in August, led by suburban gains: SRX, 99.co
Sep 26, 2023
RESALE prices of condominiums rose 1 per cent in August, led by higher prices in suburban locations and reversing two straight months of decline, flash estimates from 99.co and SRX showed on Tuesday (Sep 26).
Year on year, condo resale prices were 7.6 per cent higher.
An estimated 880 units were resold in August, an increase of 3 per cent from July. Year on year, the volume was down 16.6 per cent compared with August 2022, and 8.3 per cent lower than the five-year average for the month.
Median unit prices of non-landed resale transactions in the city fringe (Rest of Central Region or RCR) and the suburban Outside Central Region (OCR) held firm in August, said PropNex’s head of research and content Wong Siew Ying.
Data from the Urban Redevelopment Authority showed RCR resale home prices rose by 2.4 per cent month on month to S$1,742 per square foot (psf), and OCR prices inched up by 0.4 per cent month on month to S$1,394 psf in August, she said.
In contrast, the median transacted unit price in prime locations (Core Central Region or CCR) dropped 5.5 per cent to S$1,954 psf in August.
“Prices in the RCR and OCR could have been supported by primary market sales including new launches in August, as well as the more stable owner-occupier demand in the RCR and OCR, relative to the CCR,” added Wong.
Huttons Asia chief executive officer Mark Yip said: “The absence of new (project) launches led to some demand spilling over to the resale market in August 2023.”
Although there were five project launches in August, these were all small or mid-sized developments with fewer than 500 units, with the largest project Altura – an executive condominium – coming with restrictions on purchases, added OrangeTee & Tie’s senior vice-president of research and analytics Christine Sun.
More than half of the resale volume in August was in the OCR, followed by 31.2 per cent in the RCR and 17.5 per cent in the CCR.
99-SRX data showed OCR registering the highest resale price gain of 1.6 per cent, followed by RCR which rose 1.3 per cent. CCR’s resale prices dipped 0.1 per cent.
Year on year, August resale prices were higher across all regions, with the CCR up 2.7 per cent, RCR up 7.5 per cent, and OCR up 9.8 per cent.
The higher price increases in the OCR is “within expectation as more projects in the suburbs have reached their Temporary Occupation Permit (TOP) in recent months, and newer condos tend to fetch higher prices,” said OrangeTee’s Sun. “Moreover, OCR still forms the bulk of home supply and is considered more affordable than other private homes in RCR and CCR.”
The number of sub-sale transactions, defined as secondary sales inked before the project is completed, reached 11.6 per cent in August. This is a 0.5 per cent increase from the preceding month.
“This might be correlated to the lack of new launches available as buyers now turn to new already-built units. As the number of new launches continues to be depressed, we expect to see an uptrend in sub-sale transactions and more cases of such units seeing profits as owners catch on to the trending demand,” added Luqman Hakim, chief data and analytics officer at 99.co.
ERA Realty’s key executive officer Eugene Lim pointed to the large number of projects (26 condos) reaching their TOP by this year as a reason for the rise in sub-sale volume. These include mega-developments such as Treasure at Tampines (2,203 units), Florence Residences (1,410 units) and Avenue South Residences (1,074 units).
The most expensive resale unit transacted in August was a unit at 3 Orchard By-the-Park at S$11 million.
In the RCR, the highest transacted price was S$6.3 million for a unit at Aalto, while in the OCR, a S$3.26 million Kensington Park Condominium topped deals.
The overall median capital gain for resale condos was S$311,000 in August, up S$11,000 from July. District 20 (Ang Mo Kio, Bishan, Thomson) posted the highest median capital gain at S$638,000, while District 2 (Chinatown, Tanjong Pagar) posted the lowest capital gain at S$90,000.
PropNex’s Wong expects the resale market to remain “resilient” over the next few months.
“According to caveats lodged, the median transacted unit price gap between new non-landed private homes and that of resale non-landed properties is around 50 per cent in August,” she said. More project completions could also boost resale stock in the market and support sales volume.
Huttons’ Yip said the robust public housing market may continue to support the resale condo market, but cautioned that the cloudy economic outlook and high interest rates may temper overall price gains to around 8 per cent in 2023.
https://www.businesstimes.com.sg/property/condo-resale-prices-reverse-slide-august-led-suburban-gains-srx-99co
Sep 26, 2023
RESALE prices of condominiums rose 1 per cent in August, led by higher prices in suburban locations and reversing two straight months of decline, flash estimates from 99.co and SRX showed on Tuesday (Sep 26).
Year on year, condo resale prices were 7.6 per cent higher.
An estimated 880 units were resold in August, an increase of 3 per cent from July. Year on year, the volume was down 16.6 per cent compared with August 2022, and 8.3 per cent lower than the five-year average for the month.
Median unit prices of non-landed resale transactions in the city fringe (Rest of Central Region or RCR) and the suburban Outside Central Region (OCR) held firm in August, said PropNex’s head of research and content Wong Siew Ying.
Data from the Urban Redevelopment Authority showed RCR resale home prices rose by 2.4 per cent month on month to S$1,742 per square foot (psf), and OCR prices inched up by 0.4 per cent month on month to S$1,394 psf in August, she said.
In contrast, the median transacted unit price in prime locations (Core Central Region or CCR) dropped 5.5 per cent to S$1,954 psf in August.
“Prices in the RCR and OCR could have been supported by primary market sales including new launches in August, as well as the more stable owner-occupier demand in the RCR and OCR, relative to the CCR,” added Wong.
Huttons Asia chief executive officer Mark Yip said: “The absence of new (project) launches led to some demand spilling over to the resale market in August 2023.”
Although there were five project launches in August, these were all small or mid-sized developments with fewer than 500 units, with the largest project Altura – an executive condominium – coming with restrictions on purchases, added OrangeTee & Tie’s senior vice-president of research and analytics Christine Sun.
More than half of the resale volume in August was in the OCR, followed by 31.2 per cent in the RCR and 17.5 per cent in the CCR.
99-SRX data showed OCR registering the highest resale price gain of 1.6 per cent, followed by RCR which rose 1.3 per cent. CCR’s resale prices dipped 0.1 per cent.
Year on year, August resale prices were higher across all regions, with the CCR up 2.7 per cent, RCR up 7.5 per cent, and OCR up 9.8 per cent.
The higher price increases in the OCR is “within expectation as more projects in the suburbs have reached their Temporary Occupation Permit (TOP) in recent months, and newer condos tend to fetch higher prices,” said OrangeTee’s Sun. “Moreover, OCR still forms the bulk of home supply and is considered more affordable than other private homes in RCR and CCR.”
The number of sub-sale transactions, defined as secondary sales inked before the project is completed, reached 11.6 per cent in August. This is a 0.5 per cent increase from the preceding month.
“This might be correlated to the lack of new launches available as buyers now turn to new already-built units. As the number of new launches continues to be depressed, we expect to see an uptrend in sub-sale transactions and more cases of such units seeing profits as owners catch on to the trending demand,” added Luqman Hakim, chief data and analytics officer at 99.co.
ERA Realty’s key executive officer Eugene Lim pointed to the large number of projects (26 condos) reaching their TOP by this year as a reason for the rise in sub-sale volume. These include mega-developments such as Treasure at Tampines (2,203 units), Florence Residences (1,410 units) and Avenue South Residences (1,074 units).
The most expensive resale unit transacted in August was a unit at 3 Orchard By-the-Park at S$11 million.
In the RCR, the highest transacted price was S$6.3 million for a unit at Aalto, while in the OCR, a S$3.26 million Kensington Park Condominium topped deals.
The overall median capital gain for resale condos was S$311,000 in August, up S$11,000 from July. District 20 (Ang Mo Kio, Bishan, Thomson) posted the highest median capital gain at S$638,000, while District 2 (Chinatown, Tanjong Pagar) posted the lowest capital gain at S$90,000.
PropNex’s Wong expects the resale market to remain “resilient” over the next few months.
“According to caveats lodged, the median transacted unit price gap between new non-landed private homes and that of resale non-landed properties is around 50 per cent in August,” she said. More project completions could also boost resale stock in the market and support sales volume.
Huttons’ Yip said the robust public housing market may continue to support the resale condo market, but cautioned that the cloudy economic outlook and high interest rates may temper overall price gains to around 8 per cent in 2023.
https://www.businesstimes.com.sg/property/condo-resale-prices-reverse-slide-august-led-suburban-gains-srx-99co