Uncertain rental market drives condo resale volumes to 11-year high

The demand for condo resales will likely remain high in the coming months, analysts say.

An estimated 1,993 condominum units were resold in April, the highest-ever since April 2010.

This was also 528.7% higher than the volumes recorded last year, and 125.2% higher than the 5-year average volumes for April.

Propnex head of research and content Wong Siew Ying said buyers no longer want to rent but could not wait for the completion of new projects. Investors on the other hand, do not want to lose rental income when the new condos are completed.

"In view of these considerations, the demand for resale properties will likely remain healthy, supported by buyers who prefer move-in ready properties in order to avoid the uncertainty around completion delays. In addition, the substantial price gap between new sale and resale properties may also encourage some buyers who have a tighter budget to look at the resale market," Wong said.

Wong said interest in resale properties will remain high, driven by potential delays in the completion of new residential projects as the construction sector struggles with the lack of manpower due to pandemic-induced travel restrictions.

Orange Tee senior vice president of research & analytics Christine Sun noted that more than 50% of April's resale volumes were Outside of Central Region.

“Many HDB flat owners have sold their flats in recent months and are searching for affordable, completed homes. Therefore, demand for resale homes may continue to increase in the coming months since prices of new homes are rising in many locations and the supply of mass-market condominiums remain limited,” Sun said.

Some HDB upgraders could have also bought homes in the city fringe where 23.7% of total resale units were in the Rest of Central Region (RCR) last month, she added.

On sales, she said that landlords may have sold their units due to the uncertain rental market, as it may take some time for foreign tenants to return to Singapore.