Condo resale market picks up in August

Resale prices of condos in the core central region and outlying areas month on month increased by 0.2 per cent and 1.6 per cent respectively, according to estimates.
Resale prices of condos in the core central region and outlying areas month on month increased by 0.2 per cent and 1.6 per cent respectively, according to estimates.ST FILE PHOTO

Estimates show resale prices up 3.2% year on year, sales up 50.8%

The resale market for condominiums shows signs of heating up, going by flash estimates from SRX Property released yesterday.

Resale prices of non-landed private homes last month rose 0.7 per cent month on month and 3.2 per cent from a year ago. They are now off just 4.3 per cent from their last peak in January 2014.

Month on month, resale prices in the core central region and outlying areas increased by 0.2 per cent and 1.6 per cent respectively, while prices in the city fringe stayed the same, the estimates showed.

August's month-on-month price rise was a turnaround from the 0.3 per cent decline in July, which was revised up from a 0.5 per cent fall. Before July, resale prices had risen month on month since November last year, with just one dip in April. Year to date, prices have increased by 3 per cent.

In another indicator of a recovery in the private resale market, the number of non-landed homes sold rose 19.2 per cent to 1,273 units, compared with the 1,068 units moved in July.

Compared with a year ago, sales were up by 50.8 per cent, compared with 844 units resold in August last year. It was also the best monthly sales for the last two years.

Resale volume though was still 37.9 per cent lower than its peak of 2,050 units in April 2010.

In another indicator of a recovery in the private resale market, the number of non-landed homes sold rose 19.2 per cent to 1,273 units, compared with the 1,068 units moved in July.

SRX's median transaction over X-value (TOX) - which measures if buyers are overpaying or underpaying its computer-generated market value - was zero in August, unchanged from July.

For districts with more than 10 resale transactions in August, District 1 (Boat Quay/Raffles Place/Marina) and  District 3 (Alexandra/ Commonwealth) posted the highest median TOX of $20,000.

Among relatively active districts, District 20 (Ang Mo Kio/Bishan/Thomson) posted a TOX of -$20,000.

A version of this article appeared in the print edition of The Straits Times on September 13, 2017, with the headline 'Condo resale market picks up in August'. Print Edition | Subscribe