Condo resales plummeted 80% in May

It suggests that condo resale may be highly dependent on physical viewings, an analyst said.

The volume of condo resale units plunged 80% YoY and 43% MoM to 171 units in May, compared to 300 units resold in April, according to data from SRX. The figure is also 83.1% lower than the five-year average volumes in the same month.

“Sales volume did not pick up during the second month of the Circuit Breaker, indicating that the resale market could be one of the segments which is highly dependent on physical house viewings. Most potential buyers still prefer to inspect the premises in-person and assess the condition of the units before making a purchase. Sales volume may pick up again when physical house viewings are allowed to resume,” said Christine Sun, head of research & consultancy at OrangeTee & Tie.

Broken down by regions, 47.6% of the volume are from Outside Central Region (OCR), 26.5% from the Rest of Central Region (RCR) and 25.9% from the Core Central Region (CCR).

Meanwhile, condo resale prices inched up 0.6% YoY and 0.1% MoM in May. This marks the third consecutive month of increase. “Most sellers seem to be holding firm to their asking prices despite the low sales volume,” Sun added.

OCR prices dipped 2.4% YoY, whilst CCR and RCR prices rose 0.9% and 1% YoY, respectively. The highest transacted price for a resale unit in the same month is achieved at $10.6m at Nassim Park Residences. In RCR, the priciest unit resold is at The Seafront on Meyer for $2.95m, whilst the most expensive resale deal in the OCR is a unit at Kovan Melody for $1.8m.

Sun noted that a total of 18 non-landed resale homes were sold at $10m and above this year, of which three were sold during the Circuit Breaker Period. “The ongoing sales of super-luxury condominiums during the Circuit Breaker Period indicate that Singapore remains attractive to ultra-rich investors as a safe haven investment destination.”

Overall transaction over X-value (T-O-X) is negative $10,000 in May, a $1,000 increase as compared to April. District 1 (Boat Quay / Raffles Place / Marina) posted the highest median T-O-X at negative $2,100, followed by District 14 (Eunos / Geylang / Paya Lebar) at negative $12,600.

On the other hand, District 15 (East Coast / Marine Parade) posted the lowest median T-O-X at negative $40,000, followed by District 18 (Pasir Ris / Tampines) at negative $13,000.