Condo resale volume nearly doubled in July

An analyst noted that demand in the primary market spilled over to the secondary market.

An estimated 978 condo units were resold in July, showing a 97.2% surge from 496 units in June, according to SRX data. On a YoY basis, condo resale volumes rose 10% and are also 9.3% higher than the five-year average volumes in the same month.

“We observed pent-up demand across many market segments after the circuit breaker period, including the HDB resale market, mass-market segment and private new sales. The positive buying momentum in the primary market may have 'overflowed' to the secondary market,” commented Christine Sun, head of research and consultancy at OrangeTee & Tie.

She also added that they noticed more HDB upgraders purchasing properties of late as many flats have obtained their five-year Minimum Occupation Period recently and are eligible for resale.

Breaking down by regions, 53.6% of the volumes are from the Outside Central Region (OCR), 27.8% from the Rest of Central Region (RCR) and 18.6% from the Core Central Region (CCR).

Meanwhile, condo resale prices dipped 0.1% YoY and rose 0.1% MoM in July. CCR and RCR prices fell by 2.6% and 1.2% YoY respectively, whilst OCR prices inched up by 1.5% YoY.

“Some buyers may find the current pricing level 'comfortable' to enter the market as prices could rise further in the future. Some buyers may also view the current market slowdown to be an opportunity to negotiate a better deal with sellers,” Sun said.

The highest transacted price for a resale unit is achieved at $14.99m at Skyline @ Orchard Boulevard. In RCR, the highest transacted price is a unit at Reflections at Keppel Bay for $5.85m, whilst a unit at Ocean Park for $2.8m was the priciest resale deal made in the OCR.

“More affordable resale properties below $1.5m are also in greater demand now. According to URA Realis data, 61.9% of non-landed resale homes were sold below $1.5m in July, when compared to 48.7% in June this year and 56.3% in June 2019,” Sun noted.

The overall transaction over X-value (T-O-X) is at negative $10,000 in July, representing no change from the previous month. District 18 (Pasir Ris / Tampines) posted the highest median T-O-X at positive $9,500, followed by District 16 (Bedok / Upper East Coast) at positive $5,000 T-O-X.

District 4 (Sentosa / Harbourfront) posted the lowest median T-O-X at negative $90,000, followed by District 10 (Tanglin / Holland / Bukit Timah) at negative $70,000.