Condo resale prices rise for 23rd straight month; transactions slide 17.2%: SRX, 99.co

CONDOMINIUM resale prices have gone up yet again for the 23rd month in a row, rising by 0.8 per cent in Jun 2022, though volume transacted fell 17.2 per cent as compared to May 2022.

Flash estimates from SRX and 99.co published on Wednesday (Jul 13) showed that overall prices had gone up 9.4 per cent as compared to a year ago. Year-on-year, all three categories — Core Central Region (CCR), Rest of Central Region (RCR), and the Outside Central Region (OCR) — also saw upward price movements of 5.6, 8.8 and 10.9 per cent respectively.

The report estimated that around 1,250 units were sold in the month of June. This represents a 17.1 per cent fall in volume transacted as compared to the year-ago period, and 27.3 per cent higher than the 5-year average volumes for the month of June.

Nearly 60 per cent of the transactions were those in the OCR, while transactions in RCR and CCR made up 24.5 and 15.7 per cent of the total number of deals in June.

The highest transacted price in June stood at S$12.888 million for a resale unit in Nassim Park Residences.

Amongst RCR units, the highest transacted price went to a unit at Silversea which was resold for S$5.06 million, while a unit in Archipelago topped the price chart for resale units in OCR after it was resold for S$3.71 million.

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According to the report, the overall median capital gain for resale condos rounds up to S$280,655 in June 2022 —an increase of S$655 from the previous month.

The capital gain of a condo resale unit is 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, said SRX and 99.co in the joint report.

Meanwhile, the overall median unlevered and levered returns for resale condos stood at 24.4 and 51.9 per cent respectively in June. The district with the highest median unlevered return is D22 (Boon Lay/ Jurong/ Tuas) while the district with the highest median levered return was D21 (Clementi Park/ Upper Bukit Timah).

Head of research at 99.co Pow Ying Khuan believes buying sentiment in suburban neighbourhoods is likely to remain optimistic, noting the strong demand for condos in the OCR in June.

“This could be attributable to HDB home upgraders on the hunt for private condos with reasonable per-square-foot pricing, preferably near family, preferred schools or integrated malls/transport hubs,” he said.

He further expects demand for properties in the D21 and D22 district to grow as infrastructural upgrades in the area come to completion.

Property experts expect condominium resale prices to remain buoyant, with OrangeTee’s senior vice president of research & analytics Christine Sun estimating prices to climb between 6 and 8 per cent this year.

Price gains, however, may see restraints as buyers’ ability to pay higher prices are constrained by rising interest rates, said Mark Yip, chief executive of Huttons Asia.