Private condo resales down 13.6% to 751 units in August

A unit at Le Nouvel Ardmore sold for $15.7m.

Private non-landed residential unit transactions fell by 13.6% MoM to 751 units resold in August compared to 869 units in July, according to data from the SRX Price Index.

Overall transaction volumes in August rose 4.3% YoY, but dipped 1.7% than the five-year average volume for the month.

Prices of non-landed private residential units inched up 0.2% YoY in August, and remained unchanged compared to prices in July, according to data from the SRX Price Index.

Prices of condos at the rest of central region (RCR) and outside central region (OCR) rose by 1.9% YoY and 0.1% YoY, whilst prices of units in the core central region (CCR) decreased by 2.2% YoY.

Meanwhile, price changes in CCR, RCR, and OCR in July decreased by 0.3% YoY, 1.5% YoY, and 0.1% YoY, revised downwards from the 0.1%, 1.1%, and 0.3% YoY declines reported earlier. Overall, condo prices in July fell by 0.6% from the 0.5% fall stated in an earlier release.

Also read: Private condo resales up 32.2% to 882 units in July

Real estate agency OrangeTee said that the resale prices in CCR and RCR rose in tandem with higher launch prices of new projects in these market segments. “The higher launch prices for new projects could be due to their freehold status, better quality finishing, and being situated in choice locations. Some projects were also acquired at higher land costs during the last collective sales cycle,” the agency noted.

The highest transacted resale unit in August was achieved at Le Nouvel Ardmore, which sold for $15.7m or $4,000 psf. In RCR, the highest transacted price was a 6-bedroom penthouse unit at Sennett Residence resold for $5.5m; and in OCR, the highest transacted price was a 35-year-old, freehold unit at Thomson Grove resold for $2.7m.

OrangeTee also noted the rise of foreign buyers in the resale market, a trend it has observed since April. According to data from the Urban Redevelopment Authority, about 5.7% of resale homes were bought by non-permanent residents in August this year, higher than 4.1% average from September 2018 to March 2019.

“Whilst the number of foreign buyers may not be as large as what was observed during the pre-measures period (cooling measures were implemented in July 2018), demand for private homes from foreign buyers may continue to grow in the coming months. The global economic uncertainties have bolstered demand for properties here, where Singapore has been widely regarded as a safe haven for long term investment,” said OrangeTee.