Despite a drop in transaction volume, condo resale prices saw a slight increase in September, influenced by seasonal and market factors.
In September, resale condominium prices rose by 0.8%, a slower increase compared to the 1% growth seen in August. According to flash data from 99.co and SRX, this price uptick occurred amid a significant 18.4% drop in transaction volume, which saw just 738 units sold compared to 905 units in August.
The seasonal lull brought on by the Hungry Ghost month, which ended in mid-September, contributed to the decline in market activity. Analysts suggest that high interest rates and a decline in foreign buyer demand also played a role in the slower market performance.
Property experts such as Christine Sun from OrangeTee & Tie noted that many sellers were holding firm on their asking prices, given the high replacement cost of new homes and ongoing inflationary pressures. Transactions were particularly sluggish in the central area, which saw a 34% decline in resale deals.
Foreign buyers represented just 1.2% of all resale transactions in September, a significant drop from 2% in August, as stringent Additional Buyer’s Stamp Duty (ABSD) rates and stricter scrutiny on foreign investment dampened demand. The number of foreign transactions dropped to just eight units.
However, despite the dip in overall volume, there were still some high-profile sales. Notably, a $32 million penthouse at Goodwood Residence in Newton was sold, marking the highest transaction price for the month.
Looking ahead, experts suggest that while condo resale prices may see slower growth in the near future due to these challenges, rare and premium properties are still likely to command significant prices.
