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Singapore: Condo resale volumes slide 11.6% in October; price growth slows: SRX, 99.co
THE number of condominium resale transactions slid 11.6 per cent in October after seeing a slight recovery in September, according to flash figures from SRX and 99.co on Tuesday (Nov 8).
Although overall resale prices continued to rise for the 27th straight month in October, the price growth slowed to 0.3 per cent in October, the lowest growth recorded since June 2021.
It remains to be seen if the data can be construed as early signs of prices stabilising in the condo resale market, said 99 Group head of research Pow Ying Khuan. This is especially so against the backdrop of rising interest rates and new cooling measures.
These factors have also caused discretionary property investments to hit a speed bump, noted ERA Realty head of research and consultancy Nicholas Mak.
Notably, the core central region (CCR) saw a 1.1 per cent drop in resale prices, indicating that it is more price-sensitive. This could be because a significant proportion of the property purchased in the CCR is for investment by both local and foreign buyers, Mak said.
Meanwhile, both the rest of central region (RCR) and outside central region (OCR) recorded a 0.6 per cent increase in resale prices.
Overall prices are still 10.5 per cent higher on the year, with all regions posting price increases. The OCR, RCR and CCR were up 12.3 per cent, 9.9 per cent and 5.7 per cent, respectively.
Year on year, resale volumes were down 24.2 per cent but 0.7 per cent higher than the five-year average volumes for the month of October.
A majority (61.1 per cent) of resale transactions came from the OCR, followed by the RCR at 23 per cent and the CCR at 15.9 per cent.
Citing feedback from agents, PropNex Realty head of research and content Wong Siew Ying said the stock of condos available for resale remains tight.
“Given the healthy leasing demand and rental upside, many condo owners prefer to lease out their unit in a landlord’s market rather than sell,” Wong added.
Some buyers may have held back their upgrading plans temporarily while they reassess their finances in light of rising home loan interest rates and more stringent total debt servicing ratio calculations, said OrangeTee & Tie chief executive Steven Tan.
According to SRX and 99.co, the most expensive resale unit in the month was a unit at 3 Orchard By-The-Park, which changed hands for around S$13 million. In the RCR, the highest transacted price was S$12.5 million for a unit at Reflections at Keppel Bay, and S$5.4 million in the OCR for a unit at The Hacienda.
The overall median capital gain for resale condos was S$305,981 for October 2022, down S$14,819 from September. District 21 (Clementi Park and Upper Bukit Timah) recorded the highest median capital gain at S$688,056, while District 12 (Balestier and Toa Payoh) saw the lowest median capital gain at S$156,500.
The overall median unlevered return for resale condos stood at 27.2 per cent in the month, with District 21 posting the highest median unlevered return at 52.7 per cent.
SRX and 99.co calculate the capital gains and returns of a condo resale unit by comparing the current transacted price with the previous transacted price of the same unit. Districts with fewer than 10 matching transactions are excluded from the ranking.
Source: https://www.businesstimes.com.sg/real-estate/condo-resale-volumes-slide-116-in-october-price-growth-slows-srx-99co