Condo resale prices dip 0.8% in January after 5 straight mth
The resale price in the city’s fringe dropped by 0.6%, reversing a rise of 0.7 percent in the area in December 2023.
There were more older resale units which were sold at a less per square foot and had a larger floor area. They are very popular with buyers looking to buy their own home.
Condominium resale prices dipped in January, after increasing for five consecutive months. However, property analysts said it is too early to determine whether prices have stabilized.
Flash data from Singapore Real Estate Exchange (SREX) and 99.co two real estate portals, showed that resale prices fell by 0.8 percent in January following an 0.5 percent rise in December.
The interest rates remain high and are limiting buyers’ desire to pay for condos that are being resold, which has slowed prices in January.
In spite of that the price of resales in the prime market rose by 1.4 percent, while prices in the suburbs rose by 0.2 percent.
The prices in the suburbs are being supported by new homes.
The suburbs in January made up for 53.8 percent of all condo resales. The suburbs made up 27.3% of the total, with the remaining being located in the prime districts.
The highest transacted price was $16.5 million each for two freehold 3,057 sq ft units in The Ritz-Carlton Residences, a luxury condo in the Orchard area.
According to the property portal EdgeProp, the two adjacent units were purchased separately by Mr Yuan Yonggang, and his wife.
Both are believed as permanent residents of Singapore.
In the city’s fringes, most lucrative price for transactions was $9.28 million for a freehold 2,971 sq ft unit at MeyerHouse.
In the suburban areas there was a 2,573 sq ft property in the Grand Duchess area Grand Duchess was sold for $3.9 million.
In a year-on-year comparison the price of condos sold resales was up by 7.2 percent and those in suburbs rising the most at 9.9 percent, the data revealed.
It’s too early to know if the decline in resales prices is a blip or the beginning of an economic correction.
The price of condos could rise in 2024 as the fewer condos expected to be completed and this could lead to an increase in supply.
Resale volume dropped slightly by 0.6 per cent in January, with an estimated 740 units being sold which was lower than 745 units sold in December.
The decline in the cautious mood on the market, and the lull in the season between the year-end period as well as the beginning of the new year.
The Chinese New Year celebrations and holiday are likely to keep resales in February comparatively low.
Some buyers have been more cautious when purchasing one due to worries about inflation and the uncertain future of the global economy.
Many people are hoping that interest rates will moderate further in the hope that house prices are more affordable.
The number of transactions during January was also 0.4% higher than the average for the previous five years.
When more developments for residential homes come online over the coming months, private home prices will increase.
The increased prices associated with new launches could increase prices of resales condos and overall prices for condos could rise by 4 to 6% by 2024.
