Prices of condo resale properties were up in March because the volume grew 17.4%
Singapore – The price of resales condominiums increased 0.4 per cent in March, and there were more units sold when the market rebounded from February’s seasonal lull.
The increase in price was slightly more than the 0.2 percent increase in February, the flash data from the real estate websites Singapore Real Estate Exchange and 99.co revealed on April 25.
Analysts attributed the measured growth in prices to mismatches between buyer and seller expectations, and the high interest rates.
Ms Wong Siew Ying, head of content and research at the real estate company PropNex She said that she noticed that many sellers, although willing to negotiate however, do not want to reduce their asking price in the midst of the rising costs of replacement homes.
On a year-on-year basis, condo resale prices were rising by 5 percent while those in suburbs seeing the biggest increase at 7.1 per cent, data showed.
Ms Christine Sun, chief researcher and strategist for property company OrangeTee Group, said that there were more condo launches in the suburbs in recent months, which could have boosted the cost of condo units that were resold. She said that the latest condo units were sold at an average price of more than $2,000 per square foot (psf).
She said that “more home sellers are raising their asking prices, since prices of new condos in suburban areas are substantially higher than those for resales homes.”
The volume of sales rebounded in March increasing by 17.4 percent, with 883 units traded hands which was up from the 752 units that were sold in February.
Huttons Asia’s chief executive Mark Yip attributes this to the resurgence of projects after the Chinese New Year holiday lull in March, which has had a spillover on the resale markets.
He also said that some condo owners could have purchased a new condo and sold their old one, to avoid paying additional stamp duty for the second property.
Mr Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc, said that the relaunched luxury condominium Cuscaden Reserve at “more attractive price points” brought renewed interest to the private resales market.
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The Straits Times reported that after the project failed its initial deadline to sell all units that were not sold in 2023, the company was offering discounted offers starting at $2,900 a sq. feet.
The ABSD deadline was extended until 2024.
Thirty-four units of Cuscaden Reserve were sold in March and 76.5 per cent of these going to Singaporean buyers, Mr Sandrasegeran said.
“This increase in transactions demonstrates the attractiveness of strategically-positioned developments that are valuable in the current market environment,” he said.
Comparatively, the resale volumes decreased by 22,8 percent in comparison to March 2023. The number of sales was also down by 12 percent when compared to the average monthly volume for March.
PropNex’s Ms Wong stated that foreign purchases were up by 1.3 percent of the overall amount of resales during March. This is up from 0.5 percent in February. There 11 units were sold to foreign buyers.
She noted that the there was a demand for resales of properties from foreign buyers had slowed significantly following the ABSD increase in April 2023. At that time the cost for foreigners buying residential properties went up from 30% to 60 percent.
“We anticipate interest in foreign investments to remain low in light of the severe ABSD rate,” she added.
The lion’s share of condo resales transactions for March was recorded in the suburbs, with 48.2 per cent. The suburbs made up 31.6 percent, the remaining being located in prime districts.
The most expensive price was $8.7million for a 2,971 square feet 99-year leasehold at Corals in Keppel Bay.
One square. square feet. unit in the Seaside Residences, Marine Parade’s 99-year leasehold condominium, sold for $3.41m.
