Condo resale prices rise for 28th straight month in November, up by 1.1%

The highest transacted price for a resale condo in November was $19.8 million for an 8,708 sq ft unit at Marina One Residences. PHOTO: LIANHE ZAOBAO

SINGAPORE - Prices of resale condominium units climbed for the 28th straight month in November, while the number of units sold dropped further following the latest property cooling measures.

Condo resale prices rose at a quicker pace of 1.1 per cent compared with October’s 0.3 per cent, according to flash figures from real estate portals and SRX released on Tuesday.

Compared with November 2021, prices were up by 10.8 per cent, with those in the city fringe rising the most at 12.2 per cent, data showed.

Property analysts attributed the continuous price gain to the lack of new condo launches and low stock.

ERA Realty Network chief executive Marcus Chu said: “Property sellers were still unwilling to lower prices, and buyers who did not exit the market have little choice but to agree to the higher prices.”

Meanwhile, resale volume fell by 9.4 per cent, with an estimated 1,124 units changing hands in November, down from 1,240 units in October.

OrangeTee & Tie senior vice-president of research and analytics Christine Sun said the curbs that kicked in on Sept 30 could have led to fewer HDB upgraders.

“As the Housing Board market slows down, flat owners may take slightly longer to sell their units, or their flats may not be able to fetch a price as high as before,” she said. “Some condo owners may also keep their units instead of selling them, since the rental market is very strong now and the rental income is high.”

Resale volume declined by 30.4 per cent compared with November 2021, and was lower than the five-year average for the month of November.

The year-end lull – as would-be buyers travel overseas – led to lower transaction volume, said Mr Chu. He expects transactions to remain at a subdued level until after Chinese New Year.

In November, condos in the suburbs accounted for 59.2 per cent of total condo sales. Homes in the city fringes accounted for 22.4 per cent, while the remaining 18.5 per cent were in core central Singapore.

Prices for condos in the suburbs grew by 0.1 per cent in November, the lowest price gain since June 2021, noted Huttons Asia chief executive Mark Yip.

“Demand for condos there tends to be from HDB upgraders, and this group of buyers is generally more price sensitive,” he said.

PropNex Realty head of research and content Wong Siew Ying expects demand for resale condos to remain resilient, driven by buyers who were priced out of new launches, and those who need move-in-ready homes.

Ms Wong said the gap in the median transacted price between new non-landed private homes, excluding executive condominiums, and resale condos has widened slightly from October to November, according to data from URA Realis.

“This makes resale properties appealing to buyers with a smaller housing budget,” she said.

More condos will be completed in 2023, which may exert downward pressure on prices, said Ms Sun.

Nonetheless, mid-sized homes and large units in the suburbs may be in demand as they are more affordable compared with new condos. Private home owners affected by the 15-month wait-out period if they were to buy an HDB resale flat may turn back to the private market, she added.

The highest transacted price for a resale condo in November was $19.8 million for an 8,708 sq ft unit at Marina One Residences, a 99-year leasehold luxury development in the Marina Bay area.

In the city fringes, the highest transacted price was $8.35 million for a freehold 3,240 sq ft unit at MeyerHouse in the East Coast area. In the suburban areas, a 99-year leasehold 2,713 sq ft unit at Bedok Residences, an integrated development on top of Bedok Mall, sold for $3.6 million.

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