SINGAPORE – Prices of resale condominiums inched up in September, despite a slump in transactions amid the Hungry Ghost month seasonal lull.
Resale prices rose by 0.8 per cent in September, a slower pace compared with the 1 per cent increase recorded in August, according to flash figures from real estate portals 99.co and SRX released on Thursday.
Property analysts said slower market activity due to the lunar seventh month – which ended in mid-September – and cautious sentiment among foreign buyers dragged down the prices.
Resale volume dropped by 18.4 per cent, with an estimated 738 units changing hands in September, down from 905 units in August.
Ms Christine Sun, senior vice-president of research and analytics at real estate firm OrangeTee & Tie, said sales were noticeably slower as interest rates remain high and demand from foreigners has declined.
“Most sellers are holding firm to their asking prices since the replacement cost of a new home is high and inflationary pressures remain elevated,” she added.
PropNex Realty head of research and content Wong Siew Ying noted that resale condos in the central area took the biggest hit, with transactions in September down by 34 per cent from the month before.
She attributed this to the hike in additional buyer’s stamp duty (ABSD) rates, as the core central region tends to see more interest from investors compared with other regions.
ERA Singapore key executive officer Eugene Lim said: “This is also compounded by more scrutiny placed on foreign buyers since the spate of money-laundering activities started making headlines.”
Compared with September 2022, resale volume declined by 35.9 per cent. The number of transactions was also lower than the five-year average for the month of September.
Transactions by foreign buyers fell to 1.2 per cent of total resale volume in September, down from 2 per cent in August, said Ms Wong. There were only eight units sold.
“Against the backdrop of the restrictive ABSD rates for investors and foreigners, the elevated interest rates and the uncertain macroeconomic landscape, resale prices could see muted growth in the coming months,” she said.
Huttons Asia chief executive Mark Yip said that even then, rare condos will still be transacted at “eye-popping” prices.
A unit at Goodwood Residence in Newton changed hands for $32 million, the highest transacted price in September.
Mr Yip said that the 10,710 sq ft penthouse unit was sold to a Chinese permanent resident.
Despite the dip in transactions, resale condo prices were propped up as fewer home owners put up their properties for sale, Mr Lim said.
Some sellers who were aiming to move to HDB flats had to postpone their plans due to the 15-month wait-out period imposed by the Housing Board, he said.
This was part of a suite of cooling measures introduced in September 2022, which HDB said was a temporary move to help moderate demand for resale flats.
“Furthermore, private residential rents are currently quite attractive and that prompted more sellers to opt to rent out their properties instead. These sellers also hold the view that resale prices will catch up with the growth of new sale prices in the future,” Mr Lim added.
But Ms Sun said that more homes will be completed in the coming months, and the increased supply could mitigate the surge in home prices even as interest rates and the cost of living continue to hold firm.
The lion’s share of condo resale transactions in September was recorded in the suburbs, at 53.1 per cent. Homes in the city fringes accounted for 31.4 per cent, while the remaining 15.5 per cent of condo resales were in core central Singapore.
In the city fringes, the highest transacted price was $7.26 million for a freehold 4,714 sq ft unit at The Cascadia in Upper Bukit Timah.
In the suburban areas, a 1,679 sq ft unit at Seaside Residences, a 99-year leasehold condo in Siglap, sold for $4.06 million.
