Prices of condo for resale fell 0.8% after 5 mth of increase
In January, the suburbs made up for 53.8 percent of condo resales. The suburbs accounted for 27.3% of all transactions, the remaining being in the prime districts.
The most expensive price paid was $16.5 million each for two freehold, 3,057 sq ft units at The Ritz-Carlton Residences, a luxurious condominium in the Orchard region.
EdgeProp reports that Mr Yuan Yonggang and his wife purchased the two adjoining apartments separately.
Both of them are residents permanent in Singapore.
In the city’s fringes, the highest transacted price was $9.28 million for the freehold 2,971 square foot unit in MeyerHouse.
In the suburban areas in the suburbs, a 2,573 square foot property located at Grand Duchess was sold for $3.9 million.
Condominium resale prices dipped in January after rising for five consecutive months, but property analysts said it is too early to determine whether the prices are stabilising.
Resale prices declined 0.8 percent in January, reversed the 0.5 per cent climb in December, the latest data from the real estate websites Singapore Real Estate Exchange and 99.co revealed on February 26.
Interest rates have remained high which has slowed buyers’ willingness to pay high prices for resales of condos. This decreased prices in January.
Even then the price of resales in the prime market increased by 1.4 percent, while prices in the suburbs rose by 0.2%.
The prices in the suburbs are supported by newly completed homes.
Prices for resales in the city’s fringe dropped by 0.6 percent, and back-pedalling an 0.7 percent increase in the region in the month of December 2023.
There were more older resale units that were sold at less per square foot and with a greater floor space. They are very popular with buyers looking to purchase their own home.
On a year-on-year basis the price of condos sold resales was up by 7.2 percent while those in suburbs rising the most at 9.9 per cent, figures revealed.
It’s still too early to know whether the decline in resale value is a temporary blip, or if it’s the beginning of an upward trend.
The price of condos could rise by 2024, as fewer condos are expected to be completed and this could lead to shortages of supply.
Resales volume fell slightly by 0.6 per cent in January, averaging 740 units changing hands in January, down from 745 units in December.
The fall in confidence is due to the cautious sentiment in the market, and the slowdown in the market due to the year’s end as well as the beginning of the new year.
February’s resale volume will remain relatively muted in view of the Chinese New Year holidays and festivities.
Some buyers are more cautious when purchasing one due to worries regarding inflation and a shaky global economic outlook.
Many people are hoping that interest rates will moderate further in the hope that house prices are more affordable.
The number of transactions was also 0.4 percent more than the average of five years for January.
When more developments for residential homes are launched in the coming months private home prices will rise.
The cost of condos that are resold could rise by between 4 and 6 percent by 2024, due to recent condo launches.
