Condo resale prices rise for 21 straight months, up 0.7% in April: 99.co, SRX

Condo resale prices rise for 21 straight months, up 0.7% in April: 99.co, SRX

May 10, 2022

CONDOMINIUM resale prices in Singapore are up for the 21st straight month to rise 0.7 per cent in April, as compared to prices in March.

On a year-on-year basis, condo resale prices rose 9 per cent, with all regions experiencing price increases, according to a flash report by SRX Property and 99.co released on Tuesday (May 10).

Resale prices in the outside central region (OCR) saw the highest increase at 10.8 per cent. Prices in the core central region (CCR) rose 7.4 per cent, and those in the rest of central region (RCR) were up 6.7 per cent.

Meanwhile, resale volumes fell 2.2 per cent as compared with March 2022, with an estimated 1,368 units resold in April. Compared to April 2021, volumes also fell 31.3 per cent, although it was still higher than the 5-year average volumes for the month of April.

More than half the transacted volume, or 56.3 per cent, came from the OCR. Meanwhile, the CCR took up 15.9 per cent of the volume and the RCR took up 27.8 per cent.

Property analysts noted that the resilient demand likely signals a recovery in the condo resale market following the immediate effects of property cooling measures launched in December.

Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, said while April’s volume is down from March, it is still significantly more than the 1,137 units transacted in January and 979 units in February.

“Moreover, demand can be considered firm given that prices have risen for 21 straight months,” Sun said.

As for Nicholas Mak, ERA Realty Network head of research and consultancy, he expects resale prices may also be boosted by new condo launches, as some are expected to be launched in the coming months at new record prices in their neighbourhoods.

According to SRX and 99.co, the highest transacted price for a resale unit in the month was S$10.3 million for a unit at The Orchard Residences.

In the RCR, this was S$9.5 million for a unit at Silversea in Marine Parade. Meanwhile, in the OCR, a unit at The Parc Condominium on West Coast Walk was resold for the highest price at S$3.3 million.

99.co and SRX said the overall median capital gain for April was S$250,000, or S$12,000 higher than the month before.

District 11 (Newton and Novena) posted the highest median capital gain at S$513,000, while District 4 (Sentosa and Harbourfront) is the only district with a median capital loss at S$9,900, same as with March.

99.co and SRX calculates capital gain or loss of a condo resale unit by comparing the current transacted price with the previous transacted price of the same unit. Capital gain data only includes districts with more than 10 matching transactions.

Looking ahead, analysts expect the return of foreigners into Singapore could further boost housing demand, although the market may see some headwinds from macroeconomic concerns such as rising inflation.

Lee Sze Teck, Huttons Asia senior director of research, noted that the recent change in rule for buying under trust may have created some uncertainty.

On Sunday night, the Ministry of Finance announced it was imposing an Additional Buyer’s Stamp Duty (ABSD) of 35 per cent on any transfer of residential property into a living trust from May 9.

https://www.businesstimes.com.sg/rea...april-99co-srx

Condo resale prices rise for 21st straight month in April, suburban prices hit new high

May 10, 2022



SINGAPORE - Prices of resale condominium units edged up for the 21st straight month in April, while transactions fell slightly as the market stabilised following property cooling measures.

Last month, condo resale prices rose at a slower pace of 0.7 per cent compared with March's 0.8 per cent, according to flash figures from real estate portals 99.co and SRX released on Tuesday (May 10).

Compared with April last year, prices were up by 9 per cent, data showed.

Prices for condos in the suburbs hit a new high since 1995, and were up 10.8 per cent compared with April last year, noted OrangeTee & Tie senior vice-president of research and analytics Christine Sun.

"This could be due to a surge in buyers who have turned from the primary market to the secondary market in the light of the tight supply of new homes in the suburbs," she said.

Suburban resale condo prices are expected to remain elevated as new condo supply will remain low this year, she added.

Meanwhile, resale volume fell by 2.2 per cent, with an estimated 1,368 units changing hands last month, down from 1,399 units the month before.

Resale transactions declined by 31.3 per cent compared with April last year, but were still 17.8 per cent higher than the five-year average for the month of April.

This could mean the resale market is on its road to recovery, four months after property cooling measures were introduced, property analysts said.

Last December, the additional buyer's stamp duty (ABSD) rates were raised from 12 per cent to 17 per cent for citizens buying their second residential property, and from 15 per cent to 25 per cent for those buying their third and subsequent ones.

The total debt servicing ratio for borrowers had been tightened from 60 per cent to 55 per cent.

Resale volume had been falling for six consecutive months starting last September, but picked up in March with the easing of safe management measures, which facilitated more property viewings.

Ms Sun said: "Despite volumes dipping slightly, the total resale volume still hovered above 1,300 units in April, which is significantly more than the number of transactions inked in January and February."

However, Huttons Asia chief executive Mark Yip said that the recent rule change that transfers of residential properties into a living trust will be subject to an ABSD of 35 per cent has created some uncertainty.

"Buyers may evaluate which is the more tax-efficient way to buy a property for their child," Mr Yip said.

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Before Monday, ABSD did not apply when there was no identifiable beneficial owner when the property was transferred.

ERA Singapore head of research and consultancy Nicholas Mak said that resale condo prices could be pushed up by new launches in the coming months.

"Some of the new residential projects to be launched in the coming months are expected to be launched at new record prices in their respective neighbourhoods," he said.

Mr Mak expects prices to rise by 2 per cent to 5 per cent over the rest of the year.

Last month, condos in the suburbs accounted for 56.3 per cent of the total sales volume. Homes in the city fringes accounted for 27.8 per cent, while the remaining 15.9 per cent were in core central Singapore.

The highest transacted price for a resale condo last month was $10.25 million for a unit at The Orchard Residences, a 99-year leasehold condo in the Orchard Road area.

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In the city fringes, the highest transacted price was $9.5 million for a 99-year leasehold unit at Silversea in Marine Parade.

In the suburban areas, a unit at freehold The Parc Condominium in the West Coast area sold for $3.3 million.

https://www.straitstimes.com/busines...s-hit-new-high