Condo resale prices grow 0.7% in October

Strong demand for properties spurred more sellers to put their units for sale.

Condo resale prices rose 0.7% YoY in October compared to a year ago, accelerating from the 0.1% YoY increase in September, SRX data showed. This is also 0.8% higher than prices recorded in September.

All three regions—Core Central Region (CCR), Rest of Central Region (RCR), and Outside of Central Region (OCR)—recorded increases of 0.5%, 1%, and 0.8%, respectively, compared to September. Compared to October 2019, RCR and OCR prices jumped 0.9% and 1.9% whilst CCR prices are 2.9% lower.

There were more potential buyers observed in the private resale market in recent weeks, which should bring cheer to sellers who saw stagnant interest during the first half of the year, noted Christine Sun, head of research & consultancy, OrangeTee & Tie.

“The strong demand for properties across the various market segments has spurred more sellers to put up their units for sale. In light of the pandemic, sellers were more willing to negotiate prices and the 'realistic asking prices' have resulted in more deals being closed in recent weeks,” she later added.

Volume-wise, a total of 1,509 units were resold during the month, a whopping 72.9% higher than in October and 78% higher than the 5-year average volumes for the month of October. This is also 21.6% higher than the 1,241 units resold in September.

Breaking down by regions, 58% of the volumes are from OCR, 25.3% from RCR and 16.8% from CCR.

These numbers are broadly in line with trends seen in the residential property market, according to Siew Ying Wong, head of research and content, PropNex.

“Sales have been relatively brisk in recent months as buyers enter the market, sensing that the worst may be over and taking confidence from the gradually recovering economy,” Wong said, adding that hunters would also be on the prowl, searching the resale market for good value buys amidst the economic downturn.

Wong believes that the secondary market would be less affected by the recent clampdown on the re-issue of Options-to-Purchase (OTP), which has already dampened new private home sales last month.

The highest transacted price for a resale unit was achieved at $62m at Wallich Residence. In RCR, the title was achieved by a unit at Keppel Bay that was resold for $9.1m; whilst in OCR, a unit at Costa Del Sold took the spot, selling for $2.9m.