Chart of the Day: New homes grew pricier vs. resales in the CCR

The collective sales fever caused an elevation in land costs.

This chart from EDMUND TIE revealed that the average price difference between newly-sold and resold private homes in the core central region (CCR) has widened to 40% in 2019, compared to 35% in 2018.

In 2019, the prices for newly-sold condos and apartments in the region averaged $2,953 psf, whilst resold homes were priced around $2,105 psf.

This was attributed to elevated land costs as some of the new launches on land sites were secured during the 2017-18 collective sales fever, as well as on government land sale sites in popular locations.

“Additionally, buyers from the high-net-worth community prioritise prestige, locational attributes and project quality over price, hence explaining the encouraging take-up rates of new project launches despite prevailing cooling measures,” the report noted.