SINGAPORE – Prices for condominium resale transactions rebounded in November against a seasonal drop in volumes.
Monthly on month, total prices rose by 1.2 per cent even as the volume of resales fell 5.8 per cent to an estimated 1,023 units.
This showed a positive change in the resale marketplace, given October’s price decline. The reason for this is the improvement in global economic conditions.
The price increase for resales is expected to continue for the next year as economic conditions improve.
Condo resale prices may continue to creep up gradually in 2025 due to stable demand and possibly tighter stock availability amid expectations of lower supply completions.
In 2025, we expect the market for private residential resales to be resilient, supported by demand-driven factors such as the desire for bigger houses, the requirement to have ready-to-move-in units as well as the large price gap relative to new launches, and any reduction of interest rates.
Prices were up 4.2 percent year-over-year, with price increases in all regions. Specifically, 4.3 percent in the rest central region (RCR), 3.6% in the outside central area (OCR), and 1.6 percent in the central central (CCR).
The highest amount paid for a unit resale during the month of March was $13 million at Leedon Residence. In the RCR area, the Silversea property that was resold for $9.2million and a property in The Trilinq was sold for $4.58million.
Resale condos recorded a median capital gain of $380,000 for November, representing a $19,000 increase from the previous month due to gains in District 22 (Boon Lay/Jurong/Tuas) with $660,000. District 1 (Boat Quay/Raffles Place/Marina) had the lowest median capital gain of $146,000.
The proportion of sub-sale transactions that refer to secondary sale transactions that occur prior to the conclusion of a project – to total secondary sale transactions in November was 6.6 percent, down from 8.8 percent the month prior.
The OCR was responsible for the majority of the volume (50.9 percent) followed by the RCR (31.6 percent) and the CCR (17.5%).
The most recent month’s sales were lower than the 1,086 units that were sold in October but it was 19.8% higher than the previous year and 8.4 percent more than the average for the last five years.
The decrease in the quantity of resales was not significant, given the number of units that were sold in the primary market. This means that demand in the secondary market is still relatively strong.
The non-landed launches of November’s residential launches captivated the hearts and wallets of 2,500 potential buyers, they diverted attention from the resales sector.
The availability of larger loans with lower interest rates could have enabled buyers to purchase private houses that are not landed.
Prices are expected to rise 3 to 4 percent, and the number of condo resales in 2024 is expected to be similar to the previous year.
Meanwhile, condo resale prices increasing at a rate of 4 percent to 7 per cent by 2025 as demand is likely to outstrip supply.
Although interest rate cuts aren’t as frequent or substantial as expected but rates are predicted to decrease in the coming year. As the credit market improves, demand for resale homes is anticipated to strengthen.