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Singapore condo resale volumes rebound in July, up 22.5%: SRX
Gains in overall volumes and prices driven by demand for condos outside of central region (OCR)
Wed, Aug 11, 2021
SINGAPORE condominium resale volumes rebounded in July after falling for two consecutive months. Overall prices, meanwhile, continued to climb, according to flash figures from SRX Property on Tuesday.
Gains in overall resale volumes and prices were driven by demand for condos in the suburban or outside of central region (OCR). The OCR had contributed to more than half (58 per cent) of volumes; prices meanwhile, were up 1.6 per cent, the highest increase among the different regions.
The other regions are the rest of central region (RCR) and core central region (CCR), which rose 0.3 per cent and 0.1 per cent, respectively. Year on year, the OCR, RCR and CCR advanced 7.7 per cent, 8.3 per cent and 8.2 per cent, respectively.
The steep jump in prices comes as supply remained the lowest among all segments, noted Christine Sun, OrangeTee & Tie's senior vice-president of research and analytics.
"Prices of some new projects increased in recent weeks, which may have resulted in some buyers diverting their attention to the secondary market," she said.
Some buyers could have also rushed to close deals before the start of the Hungry Ghost month, Ms Sun said.
ERA Realty head of research and consultancy Nicholas Mak said the price expansion of suburban condos was also due to HDB owners taking advantage of the high prices of HDB resale flats by cashing out and upgrading to private condos.
Overall, resale prices rose 1 per cent month on month and 8 per cent year on year. In terms of volume, about 1,817 units were resold last month, up 22.5 per cent from the 1,483 units resold in June 2021.
Year on year, resale volumes were 68.2 per cent higher, and 83 per cent higher than the five-year average volumes for the month of July. By region, 24 per cent of resale volume was from the RCR and 17.9 per cent was from the CCR.
The bump in volumes may also be due to buyers rushing to complete deals before tighter restrictions kick in, said Huttons Asia chief executive Mark Yip. He added that more buyers are also seeking more affordable options in the market.
SRX said a resale unit at Le Nouvel Ardmore fetched the highest transacted price at S$18.5 million. In the RCR, the most expensive resale unit was resold for S$6.5 million at Amber Skye, while the highest transacted price in the OCR was for a unit at Breeze By The East condominium, resold for S$3.5 million.
The overall median capital gain stood at S$180,170 in July 2021, up S$10,170 from June 2021.
District 21 (Clementi and Upper Bukit Timah) saw the highest median capital gain at S$435,000, while District 4 (Sentosa and Harbourfront) was the only district that posted a median capital loss of S$7,500.
SRX calculates the capital gain or loss of a condo resale unit by comparing the current transacted price with the same unit's previous transacted price. Capital gain data includes only districts with more than 10 matching transactions.
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