Condo resale prices slip 0.4%, breaking four-month uptrend

Condo resale prices in the core central region fell 0.7 per cent, while those in the outside central region retreated 0.4 per cent. Prices in the rest of central region were unchanged from May, according to estimates from SRX Property. ST FILE PHOTO
Condo resale prices in the core central region fell 0.7 per cent, while those in the outside central region retreated 0.4 per cent. Prices in the rest of central region were unchanged from May, according to estimates from SRX Property. ST FILE PHOTO

Condo resale prices slipped 0.4 per cent last month from May to break a four-month run of increases, according to flash estimates yesterday. Last month's decline followed a 0.4 per cent gain in May.

Prices in the core central region saw the biggest fall, down 0.7 per cent, while those in the outside central region retreated 0.4 per cent.

Values in the city fringes, known as the rest of central region, were unchanged from May, according to the estimates from real estate portal SRX Property.

Sales volume fell as well, with 666 units resold last month, down 20.5 per cent on the 838 moved in May.

The decline was bigger year on year, with 41.8 per cent fewer units resold compared with June last year.

However, overall condo prices were higher by 1.6 per cent than in June last year.

"The price decline in the core central region could be attributed to fewer super luxury homes being sold in June," said Ms Christine Sun, head of research and consultancy at OrangeTee & Tie.

Urban Redevelopment Authority data shows there were 19 resale condos sold above $3,000 per square foot (psf) in May, including two units that were transacted above $4,000 psf. Comparatively, only 11 units were sold above $3,000 psf last month, said Ms Sun.

She added that the lower overall sales volume is within expectation as buying activity is typically slower during the June school holidays.

"Sales volume was much higher last June as the property cooling measures were not implemented then," she said.

Ms Sun expects increased marketing activity in the coming months due to more project launches, with buying interest from the primary market potentially spilling over to the resale sector if sellers cannot match buyer price expectation.

A version of this article appeared in the print edition of The Straits Times on July 10, 2019, with the headline 'Condo resale prices slip 0.4%, breaking four-month uptrend'. Print Edition | Subscribe