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Condo resale prices in Singapore rise for seventh straight month; up 1% in Feb: SRX
NEW condominium launches continued to drive demand in the secondary market in February. Resale prices rose by 1 per cent in the month, climbing for the seventh straight month in Singapore.
Year on year, overall resale prices advanced 4.4 per cent, flash figures from real estate portal SRX Property showed on Wednesday.
Property analysts from ERA Realty, PropNex and OrangeTee & Tie noted that price growth of resale condo units was once again driven by the relatively higher prices of new residential launches.
Nicholas Mak, ERA Realty’s head of research and consultancy, said other than the “fear of missing out” and low interest rates, pricier new launches had caused a positive spillover effect on surrounding older residential properties.
All regions saw price increases month on month. The core central region (CCR), rest of central region (RCR) and outside of central region (OCR) gained 1.5 per cent, 0.7 per cent and 1.1 per cent respectively.
On a year-on-year basis, prices in the CCR, RCR and OCR rose 2.7 per cent, 2.6 per cent and 5.8 per cent respectively.
Volumes edged up 0.4 per cent on the month, despite an expected slowdown due to the Chinese New Year period. There were 1,399 units resold in February, compared with 1,394 units resold in January.
Resale volumes were 126 per cent higher than in February 2020 and 101.9 per cent higher than the five-year average volumes for the month of February.
SRX attributed more than half of resale volumes to the OCR; 26.7 per cent was from the RCR, and 17.8 per cent was from the CCR.
A unit at The Marq on Paterson Hill fetched the highest transacted price in February at S$25 million. In the RCR, the most expensive unit resold was a unit at Camelot By-The-Water that was transacted at S$5.1 million. In the OCR, the highest transacted price was S$2.7 million for a unit at Tierra Vue.
PropNex head of research and content Wong Siew Ying noted that the price gap between resale properties and new launches may have made resale units more appealing to buyers – who are by and large still price sensitive.
OrangeTee & Tie senior vice-president of research and analytics Christine Sun said: “The price disparity also indicates that there is still a good potential upside for many resale condominiums and some are currently ‘undervalued’.”
SRX’s overall median capital gain stood at S$203,844 in February 2021, up S$23,844 from January 2021.
District 15 (East Coast and Marine Parade) saw the highest median capital gain at S$450,000, while District 4 (Sentosa and Harbourfront) posted the lowest median capital gain at S$40,000.
SRX calculates the capital gain or loss of a condo resale unit by comparing the current transacted price with the same unit’s previous transacted price. Capital gain data includes only districts with more than 10 matching transactions.
Source: https://www.businesstimes.com.sg/real-estate/condo-resale-prices-in-singapore-rise-for-seventh-straight-month-up-1-in-feb-srx