Condo resale volume rises 35.6% in March after falling for 6 months; prices up 0.8%, Latest Singapore News

Prices of resale condominium units edged up for the 20th straight month in March, with the number of transactions also picking up after falling for six consecutive months.

Last month, condo resale prices rose at a quicker pace of 0.8 per cent compared with February’s 0.6 per cent, according to flash figures from real estate portals and SRX released on Tuesday (April 12).

Compared with March last year, prices are up by 9.7 per cent, data showed.

Meanwhile, resale volume climbed by 35.6 per cent, with an estimated 1,302 units changing hands last month, up from 960 units the month before.

But resale transactions declined by 31.4 per cent compared with March last year.

Property analysts said last month’s resale volume rebounded after February’s seasonal lull and the easing of safe management measures, which facilitated more property viewings.

PropNex Realty head of research and content Wong Siew Ying said the easing of travel restrictions could potentially see more foreign buyers visiting and buying residential properties in Singapore, despite the 30 per cent additional buyer’s stamp duty for foreigners buying any residential property here.

“Singapore continues to be an attractive investment destination, with its stable political environment and currency, its safety and security, and its pro-business policies,” she said.

“The effective management of the pandemic and the decisive steps taken towards living with Covid-19 will also help to buoy confidence among buyers and investors.”

Ms Christine Sun, senior vice-president of research and analytics at real estate firm OrangeTee & Tie, noted that supply was lacking in certain areas, such as the suburbs.

She estimated that fewer than 7,000 new condos – excluding executive condominiums – will be released for sale this year, of which 30 per cent, or around 2,100 units, will be in the suburbs.

“This will likely be insufficient to meet the annual housing demand from Housing Board upgraders,” Ms Sun said.

Huttons Asia chief executive Mark Yip said: “Some buyers went to the resale market as there were no launches in March.”

Last month, condos in the suburbs accounted for 61.1 per cent of the total sales volume. Homes in the city fringes accounted for 25.4 per cent, while the remaining 13.6 per cent were in core central Singapore.

Prices in the suburbs have risen faster than in the city fringes or core central Singapore for six out of the past 12 months, Ms Sun noted.

She added: “A continual demand spillover from the new sale market to the resale market may prop up prices of mass-market resale condominiums further this year.”

ERA Singapore head of research and consultancy Nicholas Mak said rising prices were partly fuelled by the robust HDB resale market.

“Condominiums are the most common type of private housing bought by HDB flat owners who are upgrading. Some owners sold their HDB flats to take advantage of the growing HDB resale prices,” he said.

The highest transacted price for a resale condo last month was $13.6 million for a unit at The Marq on Paterson Hill, a freehold condo in the Orchard Road area.

In the city fringes, the highest transacted price was $5.05 million for a 99-year leasehold unit at Silversea in the Marine Parade area.

In the suburban areas, a unit at freehold Elliot At The East Coast in the Marine Parade area sold for $3.4 million.

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