Prices of condo resale properties were up in March as volumes grew 17.4%

Singapore – The prices of resales condominiums increased 0.4 percent in March, with more units sold as the market recovered from February’s seasonal slump.

The increase in price was marginally higher than the 0.2 percent increase in February, flash data from real estate portals Singapore Real Estate Exchange and 99.co showed on April 25.

Analysts in the field of property attributed the price growth to a mismatch in price expectations between sellers and buyers, as well as high interest rates.

Ms Wong Siew Ying is the head of research and contents at PropNex. She stated that while some sellers are open to negotiations but they don’t want to lower their asking price significantly due to the high cost to replace homes.

Data showed that condo resale values rose by 5 percent on an annual basis. Prices in suburbs were at the top, at 7.1 percent.

Ms Christine Sun, chief researcher and strategist at property firm OrangeTee Group, said that there were more condo launches in the suburbs during the past months, which may have boosted the cost of condo units that were resold. She noted that the new condos sold for an average price over $2,000 per square foot (psf).

“More homeowners are raising their asking prices, since the prices of new condominiums in the suburbs remain significantly higher than (those of) Resales units” she said.

Resale volume rebounded in March growing by 17.4 per cent with an estimated 883 units changing hands in March, a rise from 752 units in February.

Huttons Asia’s chief executive Mark Yip attributes this to the resurgence of projects after the Chinese New Year holiday lull in March, which has had an effect on resale markets.

“Some condo owners might have seized the chance to purchase a condo and also sell their previous property, which means they don’t have to pay additional buyer’s tax duty (ABSD) on the second property they own,” he said.

Mohan Sandrasegeran said the relaunched luxury condominium Cuscaden Reserve, at “more appealing prices”, had injected renewed interest in the private resale marketplace.

 

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The Straits Times reported that when the project fell short of its initial deadline to sell all units that were not sold in 2023, the company was offering reduced prices beginning at $2,900 per sq. square foot.

The ABSD deadline has been extended to 2024.

Thirty-four units of Cuscaden Reserve were sold in March and 76.5 percent of them going to Singaporean buyers the owner Sandrasegeran said.

“This increase in transactions demonstrates the strong appeal of well-positioned developments that are valuable in the current environment of market,” he said.

However, compared with March 2023, the volume of resales decreased by 22.8 per cent. The volume of sales were down by 12 percent to the average monthly number for March.

PropNex’s Ms Wong stated that foreign purchases were up to 1.3 percent of the overall amount of resales sold in March. This was up from 0.5 percent in February. Eleven units were sold to foreign buyers.

She noted that the buyers of resales properties among foreign buyers has slowed considerably following the ABSD increase in April 2023. In the year 2023 the cost for foreign buyers of residential properties went up by 30% to 60%%.

“We anticipate interest in foreign investments to be a bit lower in light of the severe ABSD rate.” she added.

In the month of March, 48.2 percent of all condo resales were made in suburbs. The suburbs made up 31.6 percent, the remainder being in the prime districts.

The highest transacted price was $8.7 million for a 99-year leasehold 2,971 sq ft apartment at Corals at Keppel Bay.

In the suburban areas, a 1,485 sq ft unit at Seaside Residences, a 99-year leasehold condo situated in Marine Parade, was sold for $3.41 million.


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