Condo resale prices climbed in June, with one unit selling for $13.6 million

SINGAPORE: Resale prices for condominiums experienced a notable increase in June, rising by 4.3% compared to the same month last year, according to the latest data from SRX and 99.co.

The uptrend was driven by significant gains in the Rest of Central Region (RCR) and Outside Central Region (OCR), which saw prices jump by 6.4% and 5.7%, respectively. Conversely, the Core Central Region (CCR) witnessed a slight dip in resale prices, falling by 0.2%.

Month-on-month, overall condo resale prices edged up by 0.2% from May to June. The RCR led this monthly increase with a 1.3% rise, while prices in the CCR fell by 0.6%, and the OCR remained unchanged.

In terms of transaction volume, there was a considerable decline. An estimated 809 units were resold in June, marking a 29.9% decrease from the 1,153 units resold in May and a 5.2% drop from June 2023.

Despite the sharp month-on-month fall, Luqman Hakim, Chief Data & Analytics Officer at 99.co, told Singapore Business Review that June’s resale volume aligns with the monthly average over the past year. Mr Hakim attributed the decline to the June holidays and increased competition from the marketing of new condominium launches.

The OCR dominated resale transactions, accounting for 50.5% of all sales in June. The RCR followed with 31.7%, while the CCR represented the remaining 17.8%.

Sub-sale transactions, which occur before a project is completed, constituted 11.1% of total secondary sales in June, up by 3% from May. This increase suggests a growing trend of buyers opting for units in projects still under development.

The most expensive condo resale transaction in June was a unit at Reflections at Keppel Bay, which fetched S$13.6 million. In the CCR, a unit at The Tate Residences was resold for S$9 million, highlighting the area’s continued appeal despite the slight overall price decline. In the OCR, the highest resale price was S$4.08 million for a unit at Waterfront Key.

Looking ahead, Mr Hakim and 99.co anticipate that condo resale prices will continue to rise. They attribute this expected increase to the growing preference among buyers for newly built condominiums over new launches. This trend is likely to sustain the upward momentum in the resale market, especially in regions where buyers perceive greater value.

TISG/

Featured image by Deposit Photos