Condo resale prices rise for 24th straight month in July, volume falls 30.7% year on year
Condo resale prices rise for 24th straight month in July, volume falls 30.7% year on year. Resale condominium unit prices grew in July for the 24th month in a row, while sales decreased as loan rates rose. Condominium selling prices grew at a quicker rate in July than they did in June, rising 1.2% as opposed to 0.8%, according to flash data from real estate websites 99.co and SRX released on Wednesday (Aug 10). Data showed that since July of previous year, prices had risen by 9.8%.
In the meantime, the volume of resales decreased by 6.7%, from 1,338 units in June to an anticipated 1,248 units in July. Resale transactions fell by 31.7% compared to July of last year, although they were still 4.4% higher than the July five-year average.
Property analysts explained the decline as being caused by a discrepancy in pricing expectations between buyers and sellers, which was brought on by rising mortgage rates. Given the concerns surrounding the global economy, some buyers might not be prepared to match some sellers’ asking prices, according to Christine Sun, senior vice president of research and analytics at OrangeTee & Tie. On the other hand, sellers are not under any pressure to reduce their pricing. Some sellers still expect price hikes because of the high demand for homes from Housing Board upgraders and the shortage of housing in the suburbs, she added.
The launch of AMO Residence, which probably sparked investors’ and buyers’ interest in the new launch market, may have contributed to the decline, claims senior analyst Mohan Sandrasegeran of One Global Group. The estate’s first substantial private residential project in more over eight years, the 372-unit Ang Mo Kio complex, sold almost 98% of its units during the unveiling on July 23.
Condos in the suburbs made up 59.1% of all condo sales volume in the previous month. Homes on the outskirts of the city made up 24.6% of all housing units, with downtown Singapore’s core accounting for the final 16.3%. While some purchasers look to the mass market for more reasonably priced private condos, PropNex Realty head of research and content Wong Siew Ying claimed that HDB upgraders and owner occupiers have contributed to lift sales and prices in the suburbs. “Generally speaking, we expect would-be purchasers with a tighter housing budget to continue to seek the resale market for buying alternatives amid firm new launch prices and rising interest rates,” she said.
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