SINGAPORE – Prices for condominium resales climbed in November despite a seasonal drop in volumes.
Prices for all items increased by 1.2 percent month-on-month, despite a 5.8 percent decline in resales quantity to 1,023 units.
The market has changed positive direction since October, when prices plummeted. The recovery to an improving global economic outlook.
As the economic environment continues to grow, resale rates are anticipated to maintain an upward trend into the next year.
Due to a stable demand, and a possible tightening of the resale stock because of fewer completed supply, the cost of condo resales could continue to increase gradually through 2025.
In 2025, we anticipate the market for private residential resales to be resilient, supported by demand drivers like the desire for bigger homes, the need for ready-to-move-in homes and the significant price difference relative to new launches, and any easing of interest rates.
Prices increased by 4.2 percent from year to year, with price increases in all regions. Particularly, 4.3 percent in the rest central region (RCR), 3.6% in the outlying central region (OCR), and 1.6% in the core central region (CCR).
Leedon Residence booked the highest transacted price of a resale property for the month, which was $13 million. In the RCR area, an Silversea resale apartment sold for $9.2million while a unit in The Trilinq was sold for $4.58million.
The median capital gain of condos for resales was $380,000 in November. This is an increase of $19,000 from the previous month, mostly because of gains of $660,000 from District 22 (Boon lay/Jurong/Tuas). District 1 (Boat Quay/Raffles Place/Marina), with an average capital gain of $146,000, had the lowest.
The November percentage of sub-sale sales – a second sale prior to the completion of a project was 6.6 percent. This was down from 8.8 percent in the previous month.
The OCR represented the largest portion of the volume (50.9 percent) then the RCR (31.6%) and the CCR (17.5 percent).
The volume for the month of October was down from the 1,086 units sold in October, but it was 19.8 percent more than the previous year and 8.4 percent higher than the average for the last five years.
The drop in quantity of resales was not a significant amount, considering the huge amount of units introduced in the primary market. This indicates that the demand for the secondary market remains strong.
In November, the non-landed residential launches captured the hearts and wallets of nearly 2,500 buyers, they diverted interest from the resale market.
The possibility of loans with larger amounts with lower interest rates would have allowed buyers to buy private houses that are not landed.
Prices will rise by 3 to 4%, and the number of condo resales expected in 2024 is expected to be similar to the previous year.
While condo resales are increasing at a rate of 4 per cent to 7 per cent by 2025 since demand is likely to outstrip supply.
Although the rate reductions may not be as substantial or as frequent as we’d like but they are anticipated for in the coming year. As credit conditions improve, demand for resale homes is expected to grow.