Fewer condo deals in Aug as rising interest rates, Hungry Ghost bite: SRX, 99.co

13 Sep 2022
Property News

Resale prices continued to rise for the 25th straight month. PHOTO: JASON QUAH, ST

THE number of condominiums changing hands in the resale market continued to fall for the fourth consecutive month, with 1,135 units resold in August, according to flash figures from SRX and 99.co published on Tuesday (Sep 13).

This comes as rising interest rates and demand for new condo launches weighed on resale deals. Sales also tend to slow down during this time of the year, when some buyers avoid big-ticket purchases during the Hungry Ghost month, property analysts noted.

Resale volumes were 14.5 per cent lower than the 1,327 units resold in July 2022, 38.6 per cent lower than the year before and 8.2 per cent lower than the 5-year average volumes for the month of August.

Prices, however, continued to rise for the 25th straight month, advancing 1.2 per cent month on month and 10.5 per cent year on year.

Nicholas Mak, ERA Realty’s head of research and consultancy, noted that the fast-growing prices of private homes may be funnelling some demand towards the HDB resale market. Buyers who are waiting for their preferred condo launch or waiting for prices or interest rates to soften may also be delaying their home purchases.

Condo owners may also be holding on to their properties for rental income as home leasing and rentals are “still going strong”, noted PropNex Realty head of research and content Wong Siew Ying.

According to SRX and 99.co, all regions saw price increases, with the Core Central Region (CCR), Rest of Central Region (RCR) and Outside Central Region (OCR) rising 1 per cent, 0.8 per cent and 1.5 per cent respectively. Year on year, resale prices in the CCR was up 7.6 per cent, the RCR increased 10 per cent while the OCR rose by 11.5 per cent.

“Resale condo sellers are anticipating higher prices for new condo launches in the months ahead and are pricing them in their selling prices,” said Huttons Asia chief executive Mark Yip. 

A bulk of resale transactions in August took place in the OCR (61.7 per cent), followed by the RCR (21.4 per cent) and the CCR (16.9 per cent).

The highest transacted price for a condo resale unit in August was S$15.2 million for a unit at Sage, a condo development at Nassim Road.

In the RCR, the most expensive condo resold was S$7.7 million for a Reflections at Keppel Bay unit, while the OCR’s most expensive resale condo deal was S$3.8 million for a unit at Fernwood Towers.

The overall median capital gain for resale condos stood at S$282,201, down S$8,943 from July. District 10 (Tanglin and Holland), posted the highest median capital gain at S$619,400, while District 4 (Harbourfront and Telok Blangah), posted the lowest median capital gain at S$116,760.

District 1 (Boat Quay and Raffles Place) posted a median capital loss of S$92,520.

SRX and 99.co calculate the capital gain of a condo resale unit by comparing the current transacted price with the previous transacted price of the same unit. Districts with fewer than 10 matching transactions are excluded from the ranking.



Source: The Business Times
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