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Condo resale prices continue uptrend, volumes flat in November: SRX, 99.co

Condominium resale prices in Singapore extended their upward trajectory for the fourth consecutive month in November, although resale volumes remained subdued. According to flash data from SRX and 99.co, overall resale prices increased by 0.4% from the previous month and were 7.4% higher year-on-year. Resale volumes, however, were modest, with 848 units changing hands in November, compared to 847 units in October.

Key Highlights:

  1. Resale Price Movement: Condo resale prices rose by 0.4% in November, marking the fourth consecutive month of increases. On a year-on-year basis, prices were 7.4% higher.
  2. Resale Volumes: Resale volumes were flat, with 848 units changing hands in November, slightly higher than the 847 units in October. Year-on-year volumes increased by 6.3%, but were 4.1% lower than the five-year average for November.
  3. Market Impact of New Launches: The launch of three major non-landed projects in November – J’den, Watten House, and Hillock Green – had a spill-over effect on the resale market, with buyers turning to the resale market after being priced out or unable to secure units in new launches.
  4. Price Factors: The increase in resale prices is attributed to the completion of many new condo units in recent months. New homes tend to command higher prices, and the majority of new condos completed were in the Outside Central Region (OCR) or suburbs.
  5. Regional Breakdown: In terms of resale prices, the Core Central Region (CCR) and OCR registered increases at 3.1% and 0.9%, respectively, while resale prices in the Rest of Central Region (RCR) dropped 1.3% month-on-month.
  6. Year-on-Year Price Growth: All regions recorded year-on-year price increases, with OCR leading gains at 10.7%, followed by RCR at 6.3%, and CCR at 4.5%.
  7. Expectations for December: Resale volumes are expected to ease in December due to the year-end seasonal lull and the festive period, which typically sees a slowdown in market activity.
  8. Market Dynamics: Sellers may take longer to find buyers amid heightened competition, and investors could face increased mortgage payments, higher property taxes, and limited rental upside.
  9. Highest Transacted Prices: The highest transacted price for a resale unit in November was S$15.2 million for a unit at Nassim Jade in the CCR.
  10. Capital Gains: The overall median capital gain for resale condos fell to S$330,000 in November, with District 26 (Mandai, Upper Thomson) posting the highest median capital gain at S$660,000.
  11. Unlevered Returns: District 23 (Bukit Batok, Bukit Panjang, Choa Chu Kang) recorded the highest median unlevered return at 54.4%, while District 1 posted the lowest median unlevered return at minus 7.8%.

The continued uptrend in condo resale prices reflects ongoing demand in the market, while factors like completed new units, regional dynamics, and market competition shape price movements. As the year concludes, expectations for December include a potential easing of resale volumes during the festive period.

The Business Times

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