SINGAPORE condominium resale prices fell for the first time in five months in January, while volumes remained muted.

Flash data from SRX and 99.co released on Monday (Feb 26) showed that resale prices fell 0.8 per cent from the previous month, but were 7.2 per cent higher year on year.

In January, resale prices rose 1.4 per cent in the Core Central Region (CCR) and rose 0.2 per cent in the Outside Central Region (OCR). In contrast, resale prices in the Rest of Central Region (RCR) were down 0.6 per cent.

The fall in RCR resale prices is likely to be a short-term correction, noted Mogul.sg chief research officer Nicholas Mak. He expects prices to recover with the launch of new residential projects in the coming months at new high benchmark prices for the location of each respective new development.

“The relatively higher prices of the new launches would contribute to boost the prices of resale condominiums,” he added.

Echoing the sentiment, 99.co chief data and analytics officer Luqman Hakim noted that prospective buyers may have been holding off on purchasing existing properties in anticipation of new launch developments such as The Arcady at Boon Keng and Lumina Grand, an executive condo.

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January is also historically known to be a slow month for the condo market, he noted.

Year on year, SRX and 99.co data showed all regions recording price increases, with the OCR leading gains at 9.9 per cent, followed by the RCR at 7.9 per cent and the CCR at 2.4 per cent.

The number of resale units that changed hands stood at 740, 0.6 per cent lower than the 745 units recorded in December 2023.

“Buying sentiment has softened in general,” said Christine Sun, chief researcher and strategist at OrangeTee Group.

She noted that some potential buyers might be more cautious in their spending amid inflationary concerns and an uncertain global economic outlook.

For Huttons Asia chief executive Mark Yip, interest rates, which continue to remain high, could have also weighed on buyers’ willingness to pay high prices for resale condo units.

PropNex head of research and content Wong Siew Ying observed that the volume of resale condo transactions to foreign buyers remained low during the month, as the tighter Additional Buyer’s Stamp Duty measures since end-April 2023 kept foreign investors at bay.

Resale volumes were 43.7 per cent higher than the same period the year before and 0.4 per cent higher than the five-year average volumes for the month of January.

Most transactions took place in the OCR (53.8 per cent), followed by the RCR (27.3 per cent) and the CCR (18.9 per cent).

Sub-sale transactions accounted for 11.6 per cent of all secondary sales, down 2.5 percentage points from December 2023. Sub-sale deals refer to sales done before the completion of a project, while secondary sale transactions comprise both resale and sub-sale transactions.

The highest transacted price for a resale unit in January 2024 was S$16.5 million for a unit in The Ritz-Carlton Residences Singapore Cairnhill.

In the RCR, the most expensive unit resold was at MeyerHouse, which changed hands for S$9.28 million. In the OCR, the highest transacted price was S$3.9 million for a resale unit at Grand Duchess At St Patrick’s.

The overall median capital gain for resale condos rose to S$353,000 in January, up S$42,000 from the month before.

District 11 (Newton, Novena) posted the highest median capital gain at S$668,000, while District 1 (Boat Quay, Raffles Place, Marina) recorded the lowest median capital gain at S$5,000.

ERA Singapore key executive officer Eugene Lim said resale prices in District 11 were propped up by the successful launch and take-up of Watten House in Bukit Timah.

Resale prices in District 11 was propped up following the successful launch and take up of Watten House, in which prices rose in in tandem.”

District 26 (Mandai, Upper Thompson) continued to post the highest median unlevered return at 73.8 per cent, while District 1 recorded the lowest median unlevered return at 2.4 per cent.

Capital gains and returns of a condo resale unit are calculated by comparing the current transacted price with the previous transacted price of the same unit. Districts with fewer than 10 matching transactions are excluded from the ranking.