SINGAPORE – The rise in resale prices of condominiums picked up pace in August, reversing two consecutive months of decline as more units were sold.
Resale prices climbed 1 per cent in August, bouncing back from the 0.2 per cent dip in July, according to flash figures from real estate portals 99.co and SRX released on Tuesday.
Property analysts attributed the condo price growth to Housing Board flat upgraders, supported by the robust HDB resale market.
As there was a lack of new condo launches in August, demand spilled over to the resale market, said Huttons Asia chief executive Mark Yip.
On a year-on-year basis, condo resale prices were up by 7.6 per cent, with those in the suburbs rising the most at 9.8 per cent, data showed.
OrangeTee & Tie senior vice-president of research and analytics Christine Sun noted that resale prices in the suburbs rose 1.6 per cent in August.
It was the steepest growth across all regions after more projects there obtained their Temporary Occupation Permit (TOP) in recent months.
“The outside central region forms the bulk of home supply and is considered more affordable than other private homes in the other regions.
“Therefore, even when suburban home prices rise, there will still be demand, thus propping up prices in the long term,” she said.
Resale volume rose 3 per cent, with an estimated 880 units changing hands in August, up from 854 units in July.
However, compared with August 2022, resale volume declined by 16.6 per cent.
The number of transactions was also lower than the five-year average for the month of August.
PropNex Realty head of research and content Wong Siew Ying said the year-on-year decline – resale condos in the core central region were affected the most – could be due to the impact of April’s property cooling measures, when Additional Buyer’s Stamp Duty (ABSD) rates for foreigners doubled from 30 per cent to 60 per cent.
She noted that transactions by foreign buyers remained low, accounting for 1.9 per cent of total resale volume in August. Foreign buyer transactions did rise slightly from 1.5 per cent in July, based on caveats lodged.
“Only 15 non-landed resale private homes were bought by foreigners in August, with 13 of the units purchased by buyers from the US, and one each from Indonesia and Myanmar,” Ms Wong said.
Data also showed that in August, more buyers purchased new condo units that were yet to be completed, commonly referred to as “sub-sale transactions”.
Such transactions accounted for 11.6 per cent of total transactions in August, an increase from 0.5 per cent in July.
ERA Singapore key executive officer Eugene Lim said the larger proportion was due to the 26 condo projects that will obtain their TOP by the end of 2023, including mega-developments such as Treasure at Tampines, The Florence Residences in Hougang and Avenue South Residence in Bukit Merah.
“More first-hand investors may choose to sell their properties at this point, when they cross the three-year mark and are no longer liable for seller’s stamp duty. This will also save them the hassle of looking for a tenant amid competition with other investors within the mega-developments,” he said.
The lion’s share of condo resale transactions in August was recorded in the suburbs at 51.2 per cent. Homes in the city fringes accounted for 31.2 per cent, while the remaining 17.5 per cent were in core central Singapore.
The highest transacted price was $11 million for a freehold 2,831 sq ft unit at 3 Orchard By-The-Park.
In the city fringes, the highest transacted price was $6.3 million for a freehold 2,444 sq ft unit at Aalto in East Coast.
In the suburban areas, a 2,239 sq ft unit at Kensington Park condominium, a 999-year leasehold condo in Serangoon, sold for $3.26 million.
Correction note: An earlier version of this article said that total resale volume in August rose from 1.5 per cent in July. This is incorrect. Foreign buyer transactions rose slightly from 1.5 per cent of total resale volume in July to 1.9 per cent in August, based on caveats lodged. We are sorry for the error.
