Condo resale prices inch up in March as volume rebounds 17.4%

Resale condominium prices inched up by 0.4% in March, marking a rebound from February’s seasonal slowdown, as reported by real estate portals Singapore Real Estate Exchange and 99.co on April 25. This increase, slightly higher than February’s 0.2%, reflects a gradual recovery in the market.

Analysts attribute this modest price growth to a disparity in price expectations between buyers and sellers, alongside prevailing high interest rates. Despite some willingness to negotiate, many sellers are reluctant to significantly lower their asking prices due to the high cost of replacement homes.

On a year-on-year basis, resale condo prices rose by 5%, with suburban areas experiencing the highest increase at 7.1%. This uptrend can be attributed to increased condo launches in the suburbs in recent months, boosting the prices of resale units.

The resale volume also saw a notable rebound in March, increasing by 17.4% with an estimated 883 units changing hands, compared to 752 units in February. This uptick is attributed to the resumption of project launches post-Chinese New Year, stimulating activity in the resale market.

The relaunch of luxury condo Cuscaden Reserve at more attractive price points injected renewed interest into the private resale market, with discounted offers starting from $2,900 per square foot. Despite this surge in transactions, resale volume remains lower compared to March 2023, down by 22.8%.

Transactions by foreign buyers increased to 1.3% of total resale volume in March, up from 0.5% in February. However, foreign investment interest remains subdued due to the punitive Additional Buyer’s Stamp Duty (ABSD) rates implemented in April 2023.

In terms of location, the lion’s share of condo resale transactions occurred in the suburbs, followed by city fringes and prime districts. Notably, the highest transacted price was $8.7 million for a 99-year leasehold unit at Corals at Keppel Bay, highlighting the diversity of the market.