Luxury condos may be more attractive due to smallest price gap in resale condos

The smallest gap for resale condos was last seen in Q3 2001.

The median price per square foot (psf) gap between non-landed resale homes in CCR and those in RCR narrowed further to 17.5% in Q3 2023, from 24.1% in Q2 2023 and 27.5% in Q1 2023, according to OrangeTee.

Last quarter’s price gap was the smallest since Q3 2001 at 14.5%, OrangeTee also said.

The median price per square foot (psf) gap between resale homes in the Core Central Region (CCR) and those in the Rest of Central Region (RCR) has narrowed, compared to 24.1% in Q2 2023 and 27.5% in Q1 2023. The price gap is the smallest since Q3 2001 at 14.5%.

As this happens, the property firm's study also indicated that luxury condos may be looking more attractive to buyers.

Overall prices for resale homes recovered marginally, with all three markets picking up prices last quarter. The average price of resale private homes climbed to 0.9% from $1,616 psf to $1,631 psf. Average resale prices in the landed segment climbed 13.1%, while resale prices for the non-landed segment dropped by 0.9%, all on a quarter-on-quarter basis.

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However, median prices in RCR saw a faster rate than in CCR. During the pandemic, median prices in CCR rose, over a span of 13 quarters by 13.6%, from $1,771 psf in Q3 2020 to $2,011 psf in Q3 2023. Meanwhile, median prices of resale condos in RCR rose to 26.8%, from $1,349 psf to $1,711 psf, over the same duration.

The small gap achieved, in spite of a resale volume slowing down on Q3 2023, attributed to the seventh lunar month and elevated interest rates in the market. But overall resale prices are projected to have a gradual rise by 4-to-6% in 2023, a decline from 8.7% in 2022.