Condo resale prices up slightly in May; volumes dip as CCR deals fall: SRX, 99.co

The Outside Central Region accounts for slightly more than half of resale volumes

Jun 25, 2024

CONDOMINIUM resale prices continued to rise in May, albeit at a slower pace, while volumes dipped from the previous month.

Flash data from SRX and 99.co released on Tuesday (Jun 25) showed resale prices inching up 0.4 per cent month on month, and 4.2 per cent year on year. Around 1,084 units changed hands in May, down 5.5 per cent from the 1,146 units resold in April.

Volumes were 7.2 per cent higher on the year, and 19.2 per cent more than the five-year average volumes for the month of May.

Despite the moderation in deal volume, the number of resale transactions still hovered at around the 1,000-unit mark, said SRI head of research and data analytics Mohan Sandrasegeran.

“This resilience is noteworthy, especially considering the seasonal factors that typically affect the market,” he added.

The drop in volumes came as resale transactions in the Core Central Region (CCR) fell 34.6 per cent to 168 units resold.

ERA Singapore’s key executive officer Eugene Lim said: “The CCR continues to be suppressed by the higher Additional Buyer’s Stamp Duty introduced for foreign buyers since April 2023, and is seeing prices stagnating amid lower transaction volume.”

Deals in the Rest of Central Region (RCR) and Outside Central Region (OCR) were also down 14 per cent and 4.1 per cent, respectively.

The OCR accounted for slightly more than half (51.7 per cent) of May’s total volumes. This was followed by the RCR at 31.3 per cent, and 17.1 per cent from the CCR.

Christine Sun, chief researcher and strategist at OrangeTee Group, noted that the rise in OCR transactions, coupled with other prevailing trends, indicates a sustained demand for resale condominiums, likely due to HDB upgraders and local purchasers seeking properties for their own stay.

Property analysts from Huttons Asia and PropNex observed that the number of resale transactions made by buyers with an HDB address remained constant at around a third of monthly sales.

Wong Siew Ying, PropNex’s head of research and content, said: “The resale market is expected to continue to appeal to HDB upgraders and investors living in HDB flats owing to their more affordable pricing compared with new launches.”

Resale prices in the RCR and OCR were up by 0.3 per cent each on the month, while CCR prices remained muted.

Year on year, resale prices in the RCR were up 6 per cent, while OCR prices rose 5.7 per cent. In contrast, CCR resale prices were down 1.9 per cent.

Sub-sale transactions accounted for 7.4 per cent of all secondary sales, down 1.9 percentage points from April. Sub-sale deals refer to secondary sales made before the completion of a project; secondary-sale transactions comprise both resale and sub-sale transactions.

The most expensive condo resold was S$14 million for a unit at St Regis Residences Singapore.

In RCR, the highest transacted price was S$4.96 million for a unit at The Waterside.

As for the OCR, the most expensive condo resold was S$5.53 million for a unit at Grand Duchess at St Patrick’s.

District 21 (Clementi Park, Upper Bukit Timah) posted the highest median capital gain at S$657,000, while District 1 (Boat Quay, Raffles Place, Marina) continued to record the lowest median capital gain at S$19,000.

District 22 (Boon Lay, Jurong, Tuas) posted the highest median unlevered return at 42.3 per cent, while District 1 (Boat Quay, Raffles Place, Marina) recorded the lowest median unlevered return at 1.5 per cent.

Looking ahead, market watchers expect transaction volume to slow in June due to the school holidays. This will result in fewer viewings as buyers and sellers travel.

The volume of resale transactions could also remain stable due to the lack of project launches, said 99.co chief data and analytics officer Luqman Hakim.

Huttons Asia’s chief executive officer Mark Yip projects volume to drop by 30 per cent to between 600 and 700 units in June.

He expects resale prices to increase between 4 and 6 per cent in 2024.

https://www.businesstimes.com.sg/pro...fall-srx-99-co