Resale market bears brunt of property curbs as resold condo units crashed 35.3% in August

Resale condo prices also witnessed the highest decline at 1.6% in August.

With the cooling measures imposed in July, it seems that the resale market price was bruised more than the new property sale market, Savills Singapore research & consultancy director Alan Cheong told Singapore Business Review.

Resale prices of condominium units in the rest of the central region (RCR) saw the highest slip of 1.6% MoM in August, according to data by SRX Property. With the core central region (CCR) condo resale prices down 0.2% and outside the central region (OCR) condo resale prices inching up 0.8%, August saw condo resale prices slipping by 0.2%.

Sales volume also plummeted in August with resold condo units crashing 35.3% from the 1,072 units resold in July to 694.  

Also read: Developers' home sales crashed 63% to 616 units in August

Considering the August trend, buyers and sellers are still testing the waters of the market amidst the new cooling measures, Knight Frank Singapore senior director & head of research Lee Nai Jia and OrangeTee and Tie head of research & consultancy Christine Sun said.

“Whilst the outlook of the resale market remains subdued, activity is likely to pick up after the Chinese New Year period next year,” Lee noted. “The overall resale price index may also ease, but may be uneven across the regions.”

Also read: Private condo resale prices down 0.2% in August

Sun believes that properties for resale found in the prime districts 1, 2, 4, 9, 10 and 11 will continue to lure buyers. She added that the same goes for those that are sitting near MRT stations, shopping malls, and other amenities.

"Come late-September, we should see transaction volumes in the new sale market start to pick up without price declines,” Cheong said. “This should shore up the resale market.”

Cheong believes that the resale market’s current trend resembles a ‘vehicle hitting a speed bump’ as it takes its cue from developers’ new sales. “And if there is a dearth of launches or if the first-weekend performance at new launches is tepid, then the resale market will follow likewise.”

New launches
Cheong noted that Districts 13, 19, 20 and 3 could see the highest number of developers’ launches in H2 2018 and said that sales after the implementation of the cooling measures have been healthy.

“Thus should have a corresponding spillover effect to the resale market,” he explained.

Mayfair Gardens by Oxley and Jui Residences are amongst those that will launch in September.

Also read: 140 of 200 The Tre Ver units sold in Phase 1 launch

“The properties had very different themes with Mayfair Gardens taking prospective buyers to Westminster in London with its elegant Georgian townhouses architecture designs whilst Jui Residences brings home buyers back to memory lane,” DBS Group Research commented.

Located in Bukit Timah Road, Mayfair Gardens is low rise development with only five levels above a 5- storey car park. The indicative pricing starts from $1,800 psf, possibly averaging $1,900-2,000psf .

Meanwhile, Jui Residences sitting next to the Kallang River, might be luring to buyers due to its 8-minute walking distance to Potong Pasir MRT. Its indicative pricing starts from $1,700 psf.

DBS Group Research added that other projects such as the Woodleigh Residences by SPH and Kajima will likely be launched for preview at the end of October.