After 5 mths of growth, condo resale price drops 0.8% in Jan
The price for resales of condominiums dropped in January after a string of five consecutive rises. However, experts in the field believe it’s too early to determine if prices have stabilized.
Flash data from Singapore Real Estate Exchange (SREX) and 99.co two real estate websites, revealed that prices for resales fell by 0.8 percent in January, after an 0.5 percent rise in December.
The interest rates remain high, and this has slowed buyers’ willingness to shell out a large sum for condos that are resold. This is the reason why they slowed the prices in the in the last month.
However the price of resales in the prime market was up 1.4 percent, whereas prices in the suburbs increased by 0.2 percent.
The suburbs’ prices are supported by new homes.
The price of resales at the city’s fringe decreased by 0.6 percent, reversed from the increase of 0.7 percent in the area in the month of December 2023.
These older resales homes were sold at lower costs per square foot and featured more space for floor. They are extremely popular with buyers who want to purchase their own home.
The data showed that condo resales values increased by 7.2 percent on an annual basis. The prices in the suburbs were at the top, at 9.9 percent.
It’s too early to determine whether the decline in resale prices is just a temporary blip or the beginning of an upward trend.
The price of condos could continue to rise by 2024, since fewer condos are built. This could result in an oversupply of units.
The volume of resales fell by 0.6 percent during January. 740 units were believed to be sold, a decrease from 745 units traded hands in December.
The slowdown in the seasonal cycle between the close of the year and beginning of the new year is due to prudent market mood.
The Chinese New Year celebrations and holiday will keep resales in February relatively quiet.
Certain purchasers are more cautious about purchasing an apartment due to concerns about the possibility of inflation or the uncertain outlook for economic growth.
Many people are looking forward to interest rates to be lowered further, hoping that prices for housing will be more affordable.
The volume of transactions recorded in January was also 0.4 percent higher than the average for the past five years.
When more developments for residential homes are launched over the coming months, the cost of private homes will increase.
The cost of condos that are resold could rise by between 4 and 6 percent by 2024, due to recent condo launches.
The suburbs in January were responsible for 53.8 percent of all condo resales. The suburbs comprised 27.3 percent of all transactions, the remainder located in prime areas.
The Ritz-Carlton Residences in Orchard is a luxurious condominium. It comprises two 3,057 square feet units that were purchased for $16.5 million.
Mr Yuan Yonggang along with his wife bought the two apartments adjacent to each other independently.
Both of them are residents permanent in Singapore.
The most expensive price for the 2,971 square. feet. freehold property at MeyerHouse was $9.28million.
A 2,573 square. feet. property located in the suburbs of Grand Duchess sold for $3.9million.
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