Condo resale prices up 1.4% in March amidst widening price gap with new homes

Analysts said more buyers are turning to secondary market.

Overall prices of condo resale market grew by 1.4% in March 2023 compared to the previous month, SRX Price Index for Condo Resale said.

On a yearly basis, overall prices increased by 8.6% over March 2022. Year-on-year, all regions experience price increases, specifically, CCR by 4.1%, RCR by 9.4% and OCR by 11.0%.

Over 1,133 units are resold in March 2023, up 53.9% from the 736 units resold in February 2023.

Condo resale volumes are 0.2% higher than in March 2022, and 13.9% higher than the 5-year average volumes for the month of March.

Price gap

According to OrangeTee and PropNex, average price gap between new and resale condos have widened which would boost resale units demand.

“According to URA realis data, median prices of non-landed new sales excluding ECs are 67.1 per cent higher than non-landed resales in Q1 2023, up from 46 per cent in Q1 2022,” said OrangeTee research.

For PropNex, the high interest rates will impact affordability and concerns over slowing economic growth could weigh on market sentiment.

Foreigners purchase

OneGlobalGroup noticed a trend in the increase of resale condos that were bought by foreign nationals in March, with about 56 condos transacted up 60% from the month before.

“For instance, as a result of the ongoing turmoil in China’s property market, it is possible that some investors may be shifting their focus towards properties in Singapore,” the property research said.

It added that Singapore’s location is attractive to the property market because of its policies and safe investment destination.

Huttons Asia said HDB upgraders and foreign ultra-high net-worth individuals moving to Singapore are fueling the resale condo market demand.

“SORA rates have largely stabilised after the FED increased its rates by 25 basis points in Mar 2023 and indicated that hikes are nearing an end. This may support the resale market in the coming months of 2023,” it added.