Singapore prices for condo resales sales climbed against the backdrop of a decline in volume in November.
Prices for all items increased by 1.2 percent from month to month, even with an 5.8 percent decrease in resales quantity to 1,023 units.
The market has changed in positive direction from October when prices fell. The reason for this is an improved outlook for global economic growth.
The price increase for resales is anticipated to increase over the coming year, as the economy improves.
Because of a steady demand and a potential increase in resale inventory due to fewer completions of inventory, the price of condo resales could continue to increase slowly in 2025.
We believe that the resales sector for private residential homes will be resilient through 2025. This is due to demand-driven factors such as the need for bigger homes, and the requirement for homes that are ready for occupancy and move into, in addition to the huge cost difference between newly launched and older homes.
Prices have increased by 4.2 percent over the past year, and prices rising across all regions. Particularly, 4.3 percent in the rest central region (RCR), 3.6% in the outer central region (OCR) and 1.6 percent in the central central region (CCR).
The highest amount paid for a unit resale during the month of March was $13 million at Leedon Residence. In the RCR area, an Silversea Resale Apartment was sold for $9.2million and a property located in The Trilinq was sold for $4.58million.
The median capital gain of condos that were resold of $380,000 was recorded in November. This represents an increase of $19,000 over the previous month, mostly because of gains of $660,000 in District 22 (Boon lay/Jurong/Tuas). District 1 (Boat Quay/Raffles Place/Marina) with the highest median capital gain of $146,000, was the least profitable.
The November proportion of sub-sale transactions – a second sale prior to the completion of a project – was 6.6 percent. This was lower than 8.8 percent in the previous month.
The OCR was responsible for the majority of the volume (50.9 percent), then the RCR (31.6 percent) as well as the CCR (17.5 percent).
The volume for the month of October was lower than the 1,086 units that were sold in October, but it was 19.8 percent higher than the year before and 8.4 percent more than the average of the past five years.
The decrease in the quantity of resales was not a significant amount, considering the huge quantity of units launched in the primary market. This indicates that the demand for the secondary market is robust.
The non-landed launches of November’s residential launches captured the attention and pockets of 2,500 potential buyers, they diverted attention away from the resales sector.
The possibility of loans with larger amounts that had lower interest rates could have enabled buyers to buy larger homes that were not landed.
The price will increase by 3 to 4 percent, and the number of condo resales in 2024 will be similar to the previous year.
In 2025, the price of resales of condos is anticipated to increase between 4-7 percent, as the demand is likely to outpace the supply.
While rate cuts may not be as dramatic or as frequent as we’d like however, they will be anticipated for in the coming year. The demand for houses that are resold is expected to rise as the credit market improves.