Geylang Property News - Apartment resale prices increase for the 5th consecutive quarter in Q2, fewer units sold

Geylang Property News - Apartment resale prices increase for the 5th consecutive quarter in Q2

SINGAPORE - Geylang Properties News resale prices increased for the fifth consecutive quarter from April to June, although at a slower rate than before due to fewer units being transferred.

Prices inched up 0.6% in the second quarter, compared with 2.9% in the first three months of 2023, based on a report by real estate firm OrangeTee & Tie released on Tuesday.

On a year-over-year basis, prices have risen 7.8 percent, the report said, citing data from the Urban Redevelopment Authority's property statistics portal Realis.

In Q2 2023, resale volume decreased by 1.5%, with 2,376 units transferred. By comparison, 2,413 units were sold in the first quarter.

OrangeTee & Tie expects the resale market to see more sales in the second half of 2023 as more condos are completed.

“The high volume of newly completed units will push housing supply to a seven-year high, which could further stabilize property prices,” the report noted.

From April to June, resale prices of Geylang Properties in suburban areas increased by 2.7% from the first quarter and prices in suburban areas increased by 2.8%. Prices at the Singapore core hub fell 0.8 per cent.

The biggest drop in resale volume (17.7%) was recorded in central Singapore, where 422 units changed hands, compared with 513 units in the first quarter.

In the suburbs, resale volumes fell 0.7%, but suburban transactions picked up speed, up 8.9%.

Suburban Geylang Condos accounted for 50.4% of total apartment resale transactions in the second quarter of 2023.

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Homes on the outskirts of the city accounted for 31.8% of transactions, while homes in central Singapore accounted for the remaining 17.8%.

OrangeTee & Tie said in its report that the best-selling resale unit was The Bencoolen in Rochor, with 31 units changing hands at an average price of $1,622 per square meter (psf) in the second quarter.

Followed by High Park Residences in Sengkang, with 23 apartments trading at an average of US$1,491, and Petit Jervois in Tanglin, with 22 apartments trading at an average of US$2,597.

Nearly a third, or 30.1%, of resale apartments sold in the second quarter cost between $1 million and less than $1.5 million. Apartments priced from $1.5 million to under $2 million accounted for 23.9% of transactions.

This suggests that the current "attractive point" for resale units is between $1 million and $2 million, the report said.

Lee Sze Teck, senior research director at real estate firm Huttons Asia, said the reduction in fixed-rate loans for completed properties helped boost the resale market in the second quarter. He expects prices to increase by about 8% for the whole of 2023 as more homes are completed.

“The high interest rate environment could limit resale volumes to an estimated 11,000 units in 2023. An estimated 11,949 units were sold in 2022,” he said.

Nicholas Mak, research director at real estate portal Mogul.sg, expects the resale market to remain resilient for the rest of the year as rents remain high.

“Additionally, as Housing Council resale prices are rising faster than private property prices, unit owners will likely take advantage of the existing market to upgrade to shared apartments,” he said.

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