SINGAPORE prices for condo resales sales climbed against the backdrop of a decline in volume in November.
Monthly on month, total prices rose by 1.2 percent, even though the resales volume dropped 5.8 percent to 1 023 units.
The market has changed positive ways since October, when prices dropped. This recovery is due to an improved outlook for global economic growth.
As the economic environment continues to grow, resale rates are anticipated to maintain an upward trend throughout the coming year.
The prices for condos resales are likely to continue to creep up gradually through 2025 due to the stability of demand and possibly tighter resale stocks, with the expectation of fewer supply completions.
In 2025, we are expecting the private residential resale market to be resilient, supported by demand-driven factors such as the preference for larger houses, the requirement to have ready-to-move-in units, the substantial price gap between new launches in addition to any further easing in interest rates.
Prices grew 4.2 percent year over year, driven by price increases across all regions. Specifically, 4.3 per cent in the central region (RCR), 3.6 per percent in the outer central region (OCR) and 1.6 percent in the central region (CCR).
The highest price transacted for a unit resale during the month was $13 million at Leedon Residence. In the RCR, the Silversea Resale Apartment was sold for $9.2million, and a unit located in The Trilinq was sold for $4.58million.
The median capital gain of resale condos was $380,000 in November. This is an increase of $19,000 from the previous months, primarily due to gains of $660,000 from District 22 (Boon lay/Jurong/Tuas). District 1 (Boat Quay/Raffles Place/Marina) which had an average capital gain of $146,000, had the lowest.
The proportion of sub-sale transactions (which refers to secondary sale transactions before the completion of a project – total secondary sales in November was 6.6 per cent, a decrease from 8.8 percent the month before.
The OCR accounted for a majority of the volume (50.9 percent) followed by the RCR (31.6%) and the CCR (17.5%).
The most recent month’s sales were down on the 1,086 units sold in October, but it was 19.8 percent higher than the previous year, and 8.4 percent higher than the average of the last five years.
Given the large amount of units launched in the main market, the decline in resale volume was not significant. This shows that the demand on the secondary market is still relatively high.
The non-landed launches of November’s residential launches captured the hearts and wallets of more than 2,500 buyers they diverted attention away from the resale market.
Higher-quality loans with lower rates of interest could have given buyers more access to new private homes that aren’t landed.
Resales of condos for 2024 are expected will be comparable to last year’s figures of around 12,500, but prices will increase by 3 percent up to 4.
In 2025, the price of resales of condos is expected to rise at a rate between 7 and 4 percent since the demand will likely exceed the supply.
Although rate cuts to interest rates may not be as frequent or substantial as anticipated but rates are likely to fall in the next year. As credit conditions improve and demand for resales of homes is expected to increase.