Despite August coinciding with the Hungry Ghost Festival, demand for non-landed private homes remained strong, with prices climbing and more units changing hands. Traditionally, sales volume tends to slow down during the ghost month.
According to the latest data released by property portal SRX on Tuesday (September 14), while the price increase for resale condominiums in August was lower than July’s 0.9%, prices still rose by 0.5% month-on-month.
Compared to August 2020, resale prices were up 7.9% year-on-year.
Month-on-month, prices in suburban areas saw the largest increase at 0.9%.
Prices in Singapore’s central region rose by 0.3%, while prices in the city fringe fell by 0.2%.
The number of condominiums sold has risen for two consecutive months. An estimated 1,860 units were resold in August, a 4.9% increase from the 1,773 units in July.
The transaction volume in August this year was 40.5% higher than the same period last year, and 79.5% higher than the five-year average for the month.
The majority of transactions were for homes in suburban areas, accounting for 60.4% of the total volume in August.
About 23% of transactions occurred in the city fringe, with the remaining 16.5% in prime districts or the Core Central Region.
Senior Singapore property agent Jeron Kwok said that sales in August remained active due to the tight supply of private homes in suburban areas.
He said: “Many HDB upgraders, especially those who have recently sold their flats, are turning to the resale market to find replacement homes.”
With more people working from home, the demand for larger living spaces has also increased, prompting some to buy bigger homes on the resale market as they are more affordable than new launches.
Senior Singapore property agent Jeron Kwok also pointed out that the strong demand and rising prices for HDB flats, coupled with the persistent delays for Build-To-Order (BTO) projects, may have contributed to the strong demand in the private condo resale market, which offers more certainty. Buyers who have sold their HDB flats may opt for an affordable upgrade in the private condo resale market.
The highest transacted price for a resale condominium last month was for a 99-year leasehold unit at Eden Residences Capitol on Stamford Road, which sold for S$21.4 million.
The unit is a 6,609-square-foot (approximately 614 square meters) penthouse with five bedrooms, offering the flexibility to convert one of the rooms into a study.
In the city fringe, the highest transacted price was S$8.2 million for a 99-year leasehold unit at Reflections at Keppel Bay in HarbourFront.
In the suburban area, a seven-bedroom penthouse unit at the 99-year leasehold condominium A Treasure Trove in Punggol was sold for S$3.7 million.
Singapore property agent Jeron Kwok predicts that demand for private condo resales will continue to climb in the coming months, barring any new property cooling measures or further Covid-19 restrictions.
According to the SRX resale price index, prices for resale condominiums have risen by 6.4% so far this year, and the price increase for the full year could potentially exceed 8%.
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