Condo resale prices up 0.5%, as upturn gains ground

Condo resale prices last month were 6.2 per cent higher than in the same month last year, but down by 2.4 per cent from the peak in January 2014. They have also increased 5 per cent over the course of this year.
Condo resale prices last month were 6.2 per cent higher than in the same month last year, but down by 2.4 per cent from the peak in January 2014. They have also increased 5 per cent over the course of this year.ST FILE PHOTO

SRX estimates show values up in all regions, as well as increase in number of units resold

The upturn in the property market is looking more resilient with numbers out yesterday showing that resale prices of private condominiums kept rising last month.

Values overall were up 0.5 per cent from October with increases seen across the island.

ZACD Group executive director Nicholas Mak said: "I think buyers' confidence in the property market has returned."

Last month's increase followed a 1.3 per cent rise in October, according to SRX Property flash estimates yesterday. It noted all three regions recorded year-on-year increases: The core central region was up 7.1 per cent, the rest of central rose 7.3 per cent, while prices in the outside central region advanced 5 per cent.

Mr Mak noted: "For buyers and investors who prefer the prime districts, they can have a wider choice of different projects and different types of units in the resale market as the number of new launches in the core central region in the past 12 months has been limited."

Condo resale prices last month were 6.2 per cent higher than in the same month last year, but down by 2.4 per cent from the peak in January 2014. They have also increased 5 per cent over the course of this year.

SRX Property estimates that 1,475 units were resold last month, a 0.9 per cent bump over the 1,462 resold in October. And resale volumes last month were more than double those in November last year.

Mr Mak said this was an indication of a demand surge amid limited choices in the new home market. "We are quite likely to see an increase in resale transactions going forward, barring any shocks to the system such as adverse government interference.

"But the increase in sales volume will plateau when prices rise."

The residential market is thought to have bottomed out around the middle of this year and now seems to be on a recovery trend, with renewed buying activity in both new projects and the secondary market.

A version of this article appeared in the print edition of The Straits Times on December 13, 2017, with the headline 'Condo resale prices up 0.5%, as upturn gains ground'. Print Edition | Subscribe