New project launches and public housing options impacted market activity.
Condominium resale prices in Singapore rose marginally by 0.8% in September, compared to August, while transaction volumes dropped by 5.3%, according to flash estimates from SRX and 99.co. Analysts attributed the decline in sales to new private project launches and attractive Build-To-Order (BTO) flats offered in prime locations.
Factors Influencing Resale Activity
The drop in volumes to 1,026 units resold in September follows the 1,084 transactions recorded in August. Analysts believe buyers were drawn to new project launches and the October BTO exercise, which included well-located public flats.
“Buyers have a wider range of primary market options, which may have contributed to lower resale volumes,” said Ms. Christine Sun, chief researcher at OrangeTee.
Additionally, anticipation of potential interest rate cuts by the US Federal Reserve may have caused some buyers to delay decisions, according to Singapore Realtors Inc’s research head, Mr. Mohan Sandrasegeran.
Price Trends Across Regions
Core Central Region (CCR): Prices increased by 0.2% month-on-month.
Outside Central Region (OCR): Prices rose by 1.2%.
Rest of Central Region (RCR): Prices remained steady.
Year-on-year, resale condo prices climbed 4.4%, with OCR seeing the highest growth at 5.5%.
Capital Gains and High-Value Transactions
The highest transaction in September was a $10.3 million resale unit at The Orchard Residences. The overall median capital gain rose to $366,000, with District 10 (Tanglin/Holland/Bukit Timah) showing the largest median gain at $802,000.
Unlevered returns in District 21 (Clementi Park/Upper Bukit Timah) were the highest at 54.5%, compared to just 1% in District 1 (Boat Quay/Raffles Place/Marina).
Outlook
While prices have steadily increased throughout 2024, Ms. Sun warned of potential declines in resale activity toward year-end, as holiday travel might reduce market transactions.
