Private condo resale prices climbs 0.8% in September
Prices of resale condominiums inched up despite a slow month in August
Despite a slow month in August due to the hungry ghost festival, resale prices increase by 0.8% in September. Market watchers agreed that the seasonal 7th month which ended in mid September was probably the reason that resale volume dropped by 18.4%. An estimate on 738 units sold compared to 905 units sold in August.
High interest rates and lesser demand from foreigners
Property analysts Christine Sun senior vice president from Orange Tee and Tie noticed that sales were much slower. She accounted the slow sale numbers to the high interest rates and lesser demand for homes from foreigners.
She added that sellers are holding on firmly to their asking prices since the replacement cost of getting a new home is high and inflationary pressures remains elevated.
Propnex Realty head of research and content Wong Siew Ying also shared that resale condos in the Central Area took the biggest blow. Transaction numbers in the area were down by 34% in September from the the previous month. She attributed this to the Additional Buyer Stamp Duty (ABSD) hike as foreigners and investors prefers properties in the core central region than other regions.
ERA Singapore key executive officer Eugene Lim said that this also due to more scrutiny on foreign buyers ever since the anti money laundering activities started to make headline news.
Resale volume year on year declines by 35.9%
Property analyst also said that the transaction volume was also lower than the 5 year average for the month of September. Transactions made by foreign buyers drop to 1.2per cent of the total resale volume in September down from 2 per cent in August.
With the limiting ABSD rates for investors and foreigners, the elevated interest rates and the uncertain macro economic landscape, resale prices could see muted growth in the coming months.
Having said that, Mark Yip from Huttons Asia chief executive said that even then , rare condos will still be transacted at extravagant prices. An example of such property is the Goodwood Residence in newton which sold at $32 million. It was the highest transacted price in September.
The 10,710 sqft penthouse was sold to a Chinese permanent resident.
Dip in private condo transaction
Despite the dip in transaction volume, condominium prices still sustain as fewer owners are putting their properties up for sale. Some condominium sellers who are looking to move to HDB flats had to postpone their plans due to the 15 month wait out period imposed by the Housing Board. This was part of a string of cooling measures rolled in September 2022 to moderate the HDB resale prices.
At the same time, the property rental market are currently very attractive. In return this prompted sellers to rent out their properties instead.