New Reporter
26-10-24, 14:03
Condo resale volumes climb 32.2% in July, with CCR seeing the most price increase at 2.8%: SRX, 99.co
Prices are up 0.8% month on month and 5.5% since July 2023.
Aug 26, 2024
CONDO resale volumes increased in July, which experts ascribed to a lower base from the previous month owing to the school vacation season.
According to preliminary estimates from SRX and 99.co issued on Monday (August 26), approximately 1,075 units were resold, marking a 32.2% rise over the 813 units traded in June.
Volumes were 21.7% higher year on year, and 9% more than the five-year average volume for July.
"We think the increase in sales in July was partly seasonal, as more buyers and sellers returned to the market after the month-long school holidays in June," said Wong Siew Ying, PropNex's director of research and content.
More over half (51.9%) of the transactions originated from the Outside Central Region (OCR), around one-third (31.1%) came from the Rest of Central Region (RCR), and 17% came from the Core Central Region.
According to Christine Sun, chief researcher and strategist at OrangeTee Group, the rising demand for private residences might also be attributed to Housing and Development Board (HDB) upgraders.
Noting that certain HDB resale deals had brought in as least a million dollars, Sun speculated that the higher prices at which upgraders sold their flats may have provided them with the finances to acquire a condo resale unit.
Overall, prices were up 0.8% from June and 5.5% from July 2023.
Prices in the CCR rose the most month on month, at 2.8%, after four months of declines since March. According to Nicholas Mak, chief research officer at mogul.sg, this is a "technical rebound" that "does not signal a robust recovery"
Prices in the RCR and OCR both increased by 0.4% month on month.
Prices increased 7.1% year on year for RCR, 6% for OCR, and 2% for CCR.
Sub-sale transactions
Meanwhile, the proportion of sub-sale transactions in overall secondary sale transactions was 7.1% in July, down 5% from June.
Sub-sale transactions are secondary sales that took place prior to the project's completion.
According to Luqman Hakim, 99.co's chief data and analytics officer, the reduction is most likely caused by competition from new launches such as Kassia in Changi and Sora in Jurong.
"Some price-sensitive buyers who were previously deciding between a new and resale condo may have chosen a resale condo," said Mark Yip, CEO of Huttons Asia.
Mogul.sg's Mak stated: "The pace of construction in many of the residential developments has normalised and overcome the supply chain disruptions caused by the pandemic."
In July, the highest transaction price was S$14.2 million for a Nassim Park Residences property.
The total median capital gain for July was S$379,000, up S$58,000 from the previous month.
District 15 (East Coast/Marine Parade) had the biggest median increase at S$631,000, while District 1 (Boat Quay/Raffles Place/Marina) had the lowest at -S$67,000.
In July, the total median capital gain on resale condominiums was 31.4%.
District 21 (Clementi Park/Upper Bukit Timah) had the greatest median return at 49.7%, while District 1 had the lowest at -4.8%.
Capital gains and returns on condo resales are computed by comparing the current transacted price to the prior transacted price for the same unit.
Continued rising trend for condo resales
Analysts believe the condo resale market's rising trend will continue.
OrangeTee's Sun reported: "The robust demand and declining supply of newly completed homes may continue to sustain the prices of resale condos."
Wong Shanting, director of research and market intelligence at ERA Singapore, added: "More buyers are turning to the resale market ahead of interest rate cuts in the hopes of securing value buys, particularly for freehold homes, which are hard to come by."
Prices are up 0.8% month on month and 5.5% since July 2023.
Aug 26, 2024
CONDO resale volumes increased in July, which experts ascribed to a lower base from the previous month owing to the school vacation season.
According to preliminary estimates from SRX and 99.co issued on Monday (August 26), approximately 1,075 units were resold, marking a 32.2% rise over the 813 units traded in June.
Volumes were 21.7% higher year on year, and 9% more than the five-year average volume for July.
"We think the increase in sales in July was partly seasonal, as more buyers and sellers returned to the market after the month-long school holidays in June," said Wong Siew Ying, PropNex's director of research and content.
More over half (51.9%) of the transactions originated from the Outside Central Region (OCR), around one-third (31.1%) came from the Rest of Central Region (RCR), and 17% came from the Core Central Region.
According to Christine Sun, chief researcher and strategist at OrangeTee Group, the rising demand for private residences might also be attributed to Housing and Development Board (HDB) upgraders.
Noting that certain HDB resale deals had brought in as least a million dollars, Sun speculated that the higher prices at which upgraders sold their flats may have provided them with the finances to acquire a condo resale unit.
Overall, prices were up 0.8% from June and 5.5% from July 2023.
Prices in the CCR rose the most month on month, at 2.8%, after four months of declines since March. According to Nicholas Mak, chief research officer at mogul.sg, this is a "technical rebound" that "does not signal a robust recovery"
Prices in the RCR and OCR both increased by 0.4% month on month.
Prices increased 7.1% year on year for RCR, 6% for OCR, and 2% for CCR.
Sub-sale transactions
Meanwhile, the proportion of sub-sale transactions in overall secondary sale transactions was 7.1% in July, down 5% from June.
Sub-sale transactions are secondary sales that took place prior to the project's completion.
According to Luqman Hakim, 99.co's chief data and analytics officer, the reduction is most likely caused by competition from new launches such as Kassia in Changi and Sora in Jurong.
"Some price-sensitive buyers who were previously deciding between a new and resale condo may have chosen a resale condo," said Mark Yip, CEO of Huttons Asia.
Mogul.sg's Mak stated: "The pace of construction in many of the residential developments has normalised and overcome the supply chain disruptions caused by the pandemic."
In July, the highest transaction price was S$14.2 million for a Nassim Park Residences property.
The total median capital gain for July was S$379,000, up S$58,000 from the previous month.
District 15 (East Coast/Marine Parade) had the biggest median increase at S$631,000, while District 1 (Boat Quay/Raffles Place/Marina) had the lowest at -S$67,000.
In July, the total median capital gain on resale condominiums was 31.4%.
District 21 (Clementi Park/Upper Bukit Timah) had the greatest median return at 49.7%, while District 1 had the lowest at -4.8%.
Capital gains and returns on condo resales are computed by comparing the current transacted price to the prior transacted price for the same unit.
Continued rising trend for condo resales
Analysts believe the condo resale market's rising trend will continue.
OrangeTee's Sun reported: "The robust demand and declining supply of newly completed homes may continue to sustain the prices of resale condos."
Wong Shanting, director of research and market intelligence at ERA Singapore, added: "More buyers are turning to the resale market ahead of interest rate cuts in the hopes of securing value buys, particularly for freehold homes, which are hard to come by."