Why condo resale prices surged in September

New launches and strong demand for suburban homes uplifted prices.

Some property analysts explained that new property launches and homebuyers’ strong demand for suburban homes pushed an increase in resale prices last month.

Christine Sun, OrangeTee’s senior vice president of research & analytics, said the demand for suburban resale homes increased prices in the Outside of Central Region (OCR) faster than private homes in Rest of Central Region (RCR) and Core Central Region (CCR).

“Over the past three months, OCR rose faster than the rest of the regions by 1.3 per cent in July, 1.3 per cent in August and 2.2 per cent in September. As a result, prices in OCR rose the most by 12.9 per cent for the full year,” Sun said.

READ: What pushed demand for HDB resale flats up in September?

One Global Group’s Mohan Sandrasegeran said recently constructed projects and high value sold homes and HDB upgraders led to the price increases.

For example, Sandrasegeran cited Reflections at Keppel Bay with $17.625m as the highest transacted price. 

“The buzz surrounding the recent re-launched of Cape Royale, likely stimulated the interest of buyers and investors towards properties that are near the Sentosa area,” Sandrasegeran added.

Resale market prices, specifically in the OCR, went up due to the successful launches of Sky Eden@Bedok and Lentor Modern, said Huttons Asia CEO Mark Yip.

“Prices of resale condos in the OCR increased by 2.2% in September compared to 1.3% in August,” 

Analysts also said the impacts of fresh cooling measures implemented on 30 September are still emerging.

Condo resale prices went up for the 26th straight month, up by 1.7% in September 2022, according to 99.co and SRX figures.