SINGAPORE - The private property resale market continued to recover not just from the Covid-19 fallout but also from the 2018 cooling measures, with prices and sales volume picking up again in November.
Overall resale prices climbed for the fourth consecutive month, rising 0.3 per cent month on month in November, according to flash figures from real estate portal SRX Property on Tuesday (Dec 15). Year on year, prices are up by 1.3 per cent over November 2019.
Resale prices also increased across the board in November - with prices in the core central region (CCR), rest of central region (RCR) and outside central region (OCR) rising by 0.5 per cent, 0.1 per cent and 0.3 per cent month on month.
Private condo resale volume, meanwhile, rose by 1.4 per cent from October to 1,426 units last month, SRX data showed. That number is 83.5 per cent higher year on year, and 76 per cent more than the five-year average volume for the month of November.
Factoring SRX's resale condo estimate for November, the number of private home resale transactions has reached over 9,200 units in the first 11 months of 2020 - already surpassing the total of 8,949 units for the whole of 2019, noted PropNex head of research and content Wong Siew Ying.
Private home resale volume could potentially cross 10,500 units this year, although it is not likely to hit the 13,009 units recorded in 2018, she added.
Demand and prices of resale homes had been muted since property cooling measures were implemented in July 2018, with monthly transactions falling below 1,000 units. But from July to November this year, monthly sales exceeded 1,000 units.
The resale market has rebounded strongly - after a slow second quarter which included the circuit breaker period - driven by pent-up demand, a better match in price expectations between sellers and buyers, as well as returning confidence as the Singapore economy continues to recover, said Ms Wong.
"With the healthy demand coming though, we expect sellers to hold asking price firm or raise the price of more attractive units," she said.
OrangeTee & Tie head of research and consultancy Christine Sun said: "Many investors have already looked past current headwinds and are banking hopes on a vaccine success, and are optimistic that the global economy may see better days ahead.
"We anticipate that sales of resale homes may continue to rise moderately by about 8 to 10 per cent next year, to around 9,000 to 10,000 units. Prices may rise up to 1 per cent in 2021."
The highest transacted price in November was for a resale luxury apartment at Nassim Jade in prime District 10 which sold for $11.7 million.
The highest transacted price in the RCR (city fringes) was $6.9 million for a unit in Corals at Keppel Bay in the Harbourfront area, while a unit in The Chuan, in Lorong Chuan, resold for $3.6 million, the highest price in the OCR.