SINGAPORE - Prices of resale condominium units edged up for the 24th straight month in July, while transactions dipped amid rising interest rates.

Condo resale prices rose at a quicker pace of 1.2 per cent last month compared with June's 0.8 per cent, according to flash figures from real estate portals 99.co and SRX released on Wednesday (Aug 10).

Compared with July last year, prices were up by 9.8 per cent, data showed.

Meanwhile, the resale volume fell by 6.7 per cent, with an estimated 1,248 units changing hands in July, down from 1,338 units in June.

Resale transactions declined by 30.7 per cent compared with July last year but were still 4.4 per cent higher than the five-year average for the month of July.

Property analysts attributed the dip to a mismatch in price expectations between buyers and sellers, driven by rising mortgage rates.

Some buyers may not be willing to match some sellers’ asking prices, given the uncertainties surrounding global economics, said OrangeTee & Tie senior vice-president of research and analytics Christine Sun.

“On the other hand, sellers have no pressure to cut prices. Some sellers still expect prices to rise further, given the robust housing demand from Housing Board upgraders and supply lag in the suburbs,” she added.

One Global Group senior analyst Mohan Sandrasegeran said the decline could be due to the launch of AMO Residence, which likely stimulated the interest of buyers and investors towards the new launch market.

The 372-unit Ang Mo Kio development, which is the first major private residential project in the estate in more than eight years, sold over 98 per cent of its units during the launch on July 23.

Last month, condos in the suburbs accounted for 59.1 per cent of total condo sales volume. Homes in the city fringes accounted for 24.6 per cent, while the remaining 16.3 per cent were in core central Singapore.

PropNex Realty head of research and content Wong Siew Ying said that HDB upgraders and owner occupiers have helped to drive sales and prices in the suburbs, as some buyers look to the mass market for more affordably priced private condos.

She said: “Generally, we expect would-be buyers with a tighter housing budget to continue to tap the resale market for buying options amid firm new launch prices and rising interest rates.”

Ms Wong added that the demand will help to prop up resale prices this year.

“However, we anticipate the price growth to be gradual and buyers to remain watchful of mortgage rate hikes,” she said.

Mr Sandrasegeran also noted that resale condo prices are being driven up by HDB upgraders, foreign buyers and high value purchasers.

“In July, at least five resale condo purchases exceeded the $10 million threshold, compared with just two deals in June, according to data from URA Realis,” he said.

The highest transacted price for a resale condo in July was $22.28 million for a unit at Le Nouvel Ardmore, a luxury freehold development in the Tanglin area.

In the city fringes, the highest transacted price was $5.5 million for a 99-year leasehold unit at Echelon in Alexandra.

In the suburban areas, a 99-year leasehold unit at Double Bay Residences in the Tampines area sold for $3.4 million.