Resale prices for private condominiums rise for 5th straight quarter, but fewer units sold
Prices in the resale market for private condominium increased for the fifth consecutive quarter in the months of April through June even though lesser units being sold.
According to reports released by real estate company Orange Tee and Tie, prices rise 0.6 per cent in the 2nd quarter in comparison to 2.9 per cent in the first three months of 2023.
It also said that results year on year, prices went up by 7.8 per cent. Citing data from the Urban Redevelopment Authority’s Realis property statistics portal.
Resale volume dipped by 1.5per cent in the second quarter of 2023. Only 2376 units were transacted compare to 2413 units sold in the first quarter.
Resale market expected to record more sales in 2nd half of 2023
More new condominiums are being completed in the second half of 2023. “This in turn will push the housing supply to a 7 year high and in return will continue to stabilise the property prices”, the report said.
Resale prices in the city fringes rose 2.7per cent in comparison to the 1st quarter of 2023. Whereas those in the suburbs increase to 2.8 per cent while those in the core central of Singapore went down by 0.8 per cent.
The significant reduction in resale volumes (17.7 per cent) was recorded in core central Singapore, where 422 units were transacted compared to 513 units in the first quarter.
In the suburbs the resale volumes dipped 0.7 per cent however transactions in the city fringes rose to 8.9per cent.
High volume of transaction in the suburbs
Condominiums in the suburbs makes up 50.4 per cent of the total resale transactions in the second quarter of 2023. On the other hand, condominiums in the city fringe has 31.8 per cent whereas those in the core central of Singapore formed the remain 17.8per cent.
Orange Tee & Tie said in its report that the best selling condo was the The Bencoolen in Rochor. 31 units were transacted in at an average price of $1622 per square foot(psf).
Second on the list was High Park Residences in Sengkang, with 23 units changed hands at an average price of $1491 psf. This was followed by Petit Jervois in Tanglin which sold 22 units at an average price of $2597psf.
Almost 30.1 per cent of resale condos sold in the second quarter were sold between $1million to $1.5million and 23.9per cent of the transactions were sold for under $2million.
This indicates that the current “sweet spot” for resale condos is between the prices $1million to $1million according to the report.
Prices expected to rise in the whole of 2023
Mr Lee Sze Teck, senior director of research at Huttons Asia said that the decline in fixed rated loans for completed properties gave the resale market a boost in the second quarter.
“The high interest rate environment might put a cap on reasale transaction volume to an estimated 11,000 units in 2023. An estimated 11,949 units were sold in 2022.” he said.
According to Nicholas Mak, chief research officer at property portal Mogul.sg resale condo market to stay resilient for the rest of the year as rents remain high.
On top of that, the HDB resale prices climbs faster than private property prices. Flat owners are highly likely to take the opportunity of the current market to upgrade to a condominium.