March Witnesses a Modest Rise in Condo Resale Prices Alongside a 17.4% Surge in Sales Volume.
In March, the resale condominium market in Singapore saw a modest increase in prices by 0.4%, coupled with a significant 17.4% surge in sales volume, indicating a recovery from the February dip.
This uptick in prices, slightly more pronounced than February's 0.2% rise, was reported by Singapore Real Estate Exchange and 99.co on April 25. Analysts suggest that this growth is due to a disparity in pricing expectations and the prevailing high interest rates. PropNex's Ms. Wong Siew Ying noted that sellers are hesitant to significantly reduce their prices, considering the steep costs of acquiring new homes.
Year-over-year, resale condo prices have climbed by 5%, with suburban areas witnessing the highest increase at 7.1%. According to Ms. Christine Sun of OrangeTee Group, the influx of new condo launches in these areas, often priced above $2,000 per square foot, has influenced the resale market, prompting sellers to elevate their asking prices.
The resale market's rebound is attributed to the resumption of project launches post-Chinese New Year festivities, as observed by Mark Yip of Huttons Asia. He also mentioned that some owners might be selling their current condos to avoid the additional buyer's stamp duty on a second property.
Mohan Sandrasegeran from Singapore Realtors Inc highlighted the relaunch of Cuscaden Reserve at more appealing prices, which sparked renewed interest in the resale sector. After missing its initial sales target for 2023, the luxury condo offered units starting at $2,900 per square foot, leading to the sale of 34 units in March, primarily to Singaporean buyers.
Despite the current enthusiasm, resale volumes have decreased by 22.8% compared to March 2023 and are 12% below the five-year average for March. Foreign buyer transactions have increased to 1.3% of the total volume, up from 0.5% in February, with 11 units sold to foreign nationals. However, Ms. Wong anticipates a continued lull in foreign investment due to the steep ABSD rate hike for foreigners from 30% to 60% in April 2023.
Most resale transactions in March occurred in the suburbs (48.2%), followed by city fringes (31.6%) and prime districts (20.2%). The highest transaction was an $8.7 million sale of a 2,971 square foot unit at Corals at Keppel Bay, while a 1,485 square foot unit at Seaside Residences in Marine Parade fetched $3.41 million.
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