Hungry Ghost Festival spooks resale condo market in August

Experts said the anticipated rate cut also affected the market's performance.

Singapore's resale condo market saw a slight dip in August which was attributed to the ghost month's influence on buyer behavior.

"Viewed alongside stable prices, we believe this indicates resilient demand within this segment," Wong Shanting, head of research at ERA Singapore, said.

Christine Sun, chief researcher at OrangeTee, echoed this view, adding that prospective buyers may have delayed their purchases as they expect a rate cut which improves housing affordability with lower mortgage rates.

Mark Yip, CEO of Huttons Asia, also expects more activities following a possible rate cut in September.

"With a cut in interest rate, buyers can potentially qualify for a bigger loan and yet see a smaller monthly mortgage payment. This means that buyers previously sitting on the fence due to loan constraints can now buy their new home," Yip said.

Yip expects prices of resale condo to rise by up to six percent in 2024.

For PropNex head of research Wong Siew Ying, the market "could potentially see a bigger lift in sentiment from what could be the start of the rate cut cycle, as guided by the US Federal Reserve."

"As the rate cut cycle kicks into gear, it may translate to lower home loan rates in Singapore over the next year. This may encourage some prospective buyers to return to the property market," Wong added.