Overall condo resale prices fell by 0.6% compared with December, when prices rose 0.7%, according to figures from real estate portals 99.co and SRX. — Reuters
SINGAPORE: Prices of resale condominium units in January dipped for the first time in more than two years, as fewer units changed hands during the Chinese New Year seasonal lull period.
Overall condo resale prices fell by 0.6% compared with December, when prices rose 0.7%, according to figures from real estate portals 99.co and SRX.
Prior to January’s downturn, condo resale prices rose for 29 consecutive months since August 2020.
Property analysts attribute January’s dip in prices to the seasonal slowdown in sales activities, which was compounded by limited supply as owners held off on selling and the high interest rate environment, although it remains to be seen whether the price decline will continue in the months to come.
One Global Group senior analyst Mohan Sandrasegeran said fewer high-value transactions were observed in January, and a shift in interest towards the Housing and Development Board (HDB) resale segment could be among the reasons for the price decline.
Buyers who were unable to find suitable options in the private resale market may have turned to the HDB resale market to make the most of their budget, said Sandrasegeran.
“Due to the rising preference for larger living spaces, the HDB resale market serves as a viable option for this group of buyers, who are looking for larger living spaces at a more affordable price point than what is available in the private resale market,” he said.
In addition, foreigners are showing more interest in new condo launches than resale condo units, which could further drain the pool of potential buyers for the private resale market, said Sandrasegeran.
In January, prices in central Singapore rose by 2.5%, while those in the city fringes fell by 0.2% and those in the suburbs dropped by 1.2%.
PropNex Realty head of research and content Wong Siew Ying said it is likely that steady new home sales in central Singapore in recent months have helped to lift resale prices in the same sub-market.
Meanwhile, the number of units sold dropped for the fourth consecutive month in January on the back of property cooling measures, which came into effect in September 2022. — The Straits Times/ANN
