Condo resale volumes post slight improvement in February amid CNY lull: SRX, 99.co
Resale volumes and prices in the condominium market saw a modest improvement in February, albeit against the backdrop of the Chinese New Year holiday season, according to flash data from SRX and 99.co released on Tuesday (Mar 26).
Resale volumes saw a slight uptick of 1.2 per cent month-on-month, with 760 units resold after a decline in January. Year-on-year, volumes showed a 0.9 per cent increase and were 5 per cent higher than the five-year average volumes for February.
Analysts from OrangeTee and Huttons Asia attributed this increase in demand to the absence of new project launches in the market, prompting buyers to turn to the secondary market. Christine Sun, Chief Researcher and Strategist at OrangeTee Group, suggested that demand for resale properties may continue to strengthen in the coming months if interest rates moderate, thereby improving housing affordability and attracting more buyers.
Resale prices also saw a slight rise of 0.2 per cent on a monthly basis and a more significant increase of 6.1 per cent year-on-year. Prices in the Core Central Region (CCR) and Outside Central Region (OCR) rose by 0.2 per cent and 0.1 per cent, respectively, while prices in the Rest of Central Region (RCR) remained flat. OCR prices led gains compared to the previous year at 7.6 per cent, followed by RCR at 6.1 per cent and CCR at 2.8 per cent.
Sub-sale transactions, referring to secondary sales made before a project’s completion, accounted for 11.1 per cent of all secondary sales, down slightly from December 2023.
The highest transacted price for a resale unit in February was S$12.9 million for a unit at Ardmore Park. In the RCR, the most expensive unit resold was at The Interlace for S$5.3 million, and in the OCR, the highest transacted resale price was S$3.3 million for a unit at Kew Green.
Looking ahead, there are expectations of increased resale volumes in the following months, based on observed rises in condo resale listings. With prices stabilizing in recent months, more buyers may return to the resale market, particularly in the second quarter of 2024, according to industry experts. This stability could benefit buyers seeking to upgrade or rightsize their homes, providing them with more time to sell their existing properties without the fear of rapidly rising resale prices pricing them out of the market for their desired replacement units.
