Singapore condo resale prices up for 23rd month in June

Prices of resale condominium units edged up for the 23rd consecutive month in June, while transactions dipped amid the seasonal holiday lull.

Last month, condo resale prices rose at a quicker pace of 0.8 per cent compared with May's 0.3 per cent, according to flash figures from real estate portals 99.co and SRX released yesterday.

Compared with June last year, prices were up by 9.4 per cent, data showed.

Meanwhile, resale volume fell by 17.2 per cent, with an estimated 1,250 units changing hands in June, down from 1,510 units in May.

Resale transactions declined by 17.1 per cent compared with June last year, but were still 27.3 per cent higher than the five-year average for the month of June.

Property analysts attributed the decline from May to the typical slowdown during the June holidays, as well as the low supply of resale condo stock.

Concerns about global economic uncertainties and interest rate hikes may have also contributed to slower sales, said OrangeTee & Tie's senior vice-president of research and analytics Christine Sun.

She noted that condo prices in the suburbs rose the quickest, at 4.7 per cent over the past six months, and 10.9 per cent over the past year.

Ms Sun said Housing Board upgraders may have chosen to buy resale condo units in the suburbs as homes there tend to be cheaper. There has also been a lack of new condo launches there, pushing buyers to the resale market.

"The strong demand from HDB upgraders may have contributed to the steep price increase in the suburbs over the past year," she said.

Last month, condos in the suburbs accounted for 59.7 per cent of total condo sales volume.

Homes in the city fringes accounted for 24.5 per cent, while the remainder were in core central Singapore.

Huttons Asia chief executive Mark Yip said foreigners are continuing to buy homes in Singapore, propping up resale condo prices.

He added that four units at luxury condo Wallich Residence in the Tanjong Pagar area were sold to foreigners last month.

Ms Wong Siew Ying, head of research and content at PropNex Realty, said firm pricing and the healthy take-up of recent launches helped to elevate price growth in the resale market.

"We anticipate that condo resale transactions could see an uptick in July as more buyers, including foreigners, return to the market," she said. "Some buyers may also want to get the deals done before the start of the Hungry Ghost month at the end of July."

Ms Sun said prices of resale condos in the suburbs may hold firm as demand may continue to outstrip supply this year.

Prices of such condos are also likely to be supported with the launch of two new condos - AMO Residence and Lentor Modern in Ang Mo Kio - which are expected to set new benchmark prices in their locales, she said.

"Some sellers may raise their asking prices, given the higher selling prices of these two new condos," Ms Sun added.

Mr Yip said demand for resale condos will likely stay healthy as buyers seek more affordable options.

Ms Sun expects resale prices to rise by 6 per cent to 8 per cent over the rest of the year.

The highest transacted price for a resale condo last month was $12.888 million for a unit at Nassim Park Residences, a freehold development in the Tanglin area.