Condo resale price growth seen easing this year: experts

Total resale volume could dip to as low as 9,000 units.

In the face of a tough competition in the primary market, condo resale prices are expected to rise at a slower pace of as low as 3% in 2024 after climbing by 7.5% last year, according to property analysts. 

Christine Sun, chief researcher and strategist at OrangeTee & Tie, expects condo resale price growth to settle within 3% to 5% this year, with the total resale volume projected to slide to 9,000 to 11,000 units.

Sun traced the projected slowdown to an intense competition in the new sales market where at least 23 projects with 8,800 units launching throughout the year, providing homebuyers with plenty of options. 

She said fewer condo projects will obtain their Temporary Occupation Permits this year, thereby limiting the number of homes available for resale to around 9,875 units in 2024 compared to 19,000 units last year.

Mark Yip, chief executive officer of Huttons Asia, gave a more optimistic price growth forecast of 4% to 6% this year as he sees the expected interest rate cut later this year to boost homebuying demand.

READ MORE: Condo resale prices climbs for the 5th consecutive month in December

Even after the sustained price increases in the last five months, PropNex said the resale market continues to offer a more affordable housing option with a S$2,100 per square foot median price for resale homes in the Core Central Region. 

Median price of resale condos in the Rest of Central Region hover at S$1,760 per square foot, while those in the Outside Central Region trade at around S$1,440 per square foot, according to the property agency.

“We expect the more budget conscious buyers to continue to look at the resale market,” said Wong Siew Ying, Head of Research and Content, PropNex.