Singapore – Prices for condominium resale transactions rebounded in November, despite a seasonal drop in volumes.
The overall price increased by 1.2 percent in the month of March, despite the 5.8 percent drop in resale volume, which was 1,023 estimated units.
The market has changed in a positive way from October when prices fell. This improvement is due to a better global economic outlook.
Resale price growth is expected to continue over the coming year, as the economy improves.
Due to a stable demand, and a possible tightening of the resale stock due to fewer completions of supply, the cost of condo resales may continue to rise slowly in 2025.
We expect that the resales of residential properties will remain resilient in 2025. This is due to demand-driven factors such as the desire for larger houses and the necessity for units which are ready for occupancy, as well the large cost difference between the new launches and the existing homes.
Prices grew 4.2 percent year over year due to price rises across all regions, specifically 4.3 per cent in the rest of central region (RCR), 3.6 per cent in the outside central region (OCR) and 1.6 percent in the central region (CCR).
The highest price transacted for a unit resale for the month was $13 million for Leedon Residence. Within the RCR, the highest transacted cost was $9.2 million for a resale property at Silversea, while the sale of a unit at The Trilinq registered the OCR’s most expensive resales price of $4.58 million.
Resale condos recorded an average capital gain of $380,000 for November, resulting in a $19,000 increase from the previous month on the back of gains in District 22 (Boon Lay/Jurong/Tuas) at $660,000. District 1 (Boat Quay/Raffles Place/Marina) which had an average capital gain of $146,000, recorded the lowest.
The sub-sale transaction percentage that refer to secondary sale transactions that occur prior to the completion of a project – to total secondary sale transactions in November was 6.6 per cent, down from 8.8 percent the month before.
A major proportion of volumes, or 50.9 per cent, came from the OCR which included 31.6 percent coming from the RCR and the remaining 17.5 percent from the CCR.
The volume for the month of October was lower than the 1,086 units sold in October but it was 19.8 percent higher than the previous year, and 8.4 percent more than the average for the last five years.
Considering the high number of units introduced in the primary market, the drop in resale volumes was not significant. This indicates that demand for secondary markets remains fairly robust.
In November, the non-landed residential launches won the hearts and wallets of nearly 2,500 buyers, they diverted attention away from the resales sector.
The availability of larger loans with lower interest rates would have allowed buyers to purchase private houses that are not landed.
Prices are expected to rise 3 to 4% and the volume of condo resales in 2024 will be similar to last year’s.
In 2025, the resale value of condos is anticipated to rise at a rate between 4 and 7 percent as the demand is expected to exceed the supply.
Although the rate reductions may not be as significant or frequent as expected but they are anticipated for in the coming year. As credit conditions improve and demand for resales of homes is expected to increase.