Resale condo prices up 1.6% in June

The number of units resold crashed 41.8% YoY to 666.

Overall prices of resale condo units grew 1.6% YoY in June, according to SRX Property. On a MoM basis, prices dipped 0.4% compared to rates in May.

Rates in the core central region (CCR) saw a decrease of 0.7% MoM, followed by rates outside the central (OCR) region (0.4%). Meanwhile, rates of resale condos at the rest of the central region (RCR) were flattish.

According to Christine Sun, head of research and consultancy at OrangeTee & Tie, the price decline in CCR could be attributed to fewer super luxury homes being sold in the month of June.

“According to URA caveats downloaded on 01 Jul 2019, there were 19 resale condos sold above S$3,000 psf in May, including two units that were transacted above S$4,000 psf. These condos include South Beach Residences, Boulevard Vue, Le Nouvel Ardmore, 3 Orchard By-The-Park, New Futura, TwentyOne Angullia Park, Ardmore Park and 8 Saint Thomas. Comparatively, only 11 units were sold above S$3,000 psf in June,” she explained.

On a YoY basis, OCR rates saw the highest increase of 2.4%, followed by RCR and CCR at 1.2% and 0.5%, respectively.

The 666 units resold in June is 20.5% lower compared to the 838 units resold in May. On a YoY basis, the volume crashed 41.8% compared to June 2018.

“The lower sales volume is within expectations as sales activities are typically slower during the school holidays in June. Sales volume was much higher last June as the property cooling measures were not implemented then,” Sun said.

The analyst is expecting that amidst the project launches on the cards, marketing activities are likely to pick up in the coming months. “Buying interest from the primary market may spillover to the resale market if sellers of properties in the vicinity are able to match the price expectations of buyers,” she added.