Private condo resale prices up 1% in July

Resale volume dipped by 2.8% to 1,085 units.

The prices of private condominium resales in July jumped by 1% compared to June and 12.3% compared to last year, SRX Property revealed.

In individual sectors, Core Central Region (CCR), Rest of Central Region (RCR), and Outside Central Region (OCR) recorded a MoM price increase of 2.6%, 1.2%, and 0.2% respectively. CCR, RCR, and OCR recorded a YoY price increase of 12.8%, 13.9%, and 11.2% respectively.

Resale volume dipped by 2.8% to 1,085 units from 1,116 units in June. Compared to last year, resale volume was higher by 1.5%.

“The numerous policies set in motion previously have already eradicated much speculative buying and prevented many families from over-leveraging. The market is now limited mainly to genuine home buyers and cash-rich investors,” said OrangeTee & Tie head of research and consultancy Christine Sun.

Majority of resales were transacted $4,000 above the estimated market value, as indicated by the overall median Transaction Over X-Value (TOX) of POSITIVE $4,000.

District 4 (Telok Blangah, Harbourfront) posted the highest median T-O-X at POSITIVE $100,000, whilst District 9 (Orchard, Cairnhill, River Valley) had a T-O-X of NEGATIVE $30,000.

“These trends indicate that property cooling measures have a long-term stabilizing effect on resale prices, where price hikes do moderate after each round of intervention,” Sun added. “Looking at past trends, we may expect resale prices to continue to trend upwards albeit a much slower pace in the coming months.”