Resale Condo Price Singapore: Condo resale prices increase 1% in Aug 2023 [Summary]

The rise in resale prices of condominiums picked up pace in August, reversing two consecutive months of decline as more units were sold.

Resale prices climbed 1 per cent in August, bouncing back from the 0.2 per cent dip in July, according to flash figures from real estate portals 99.co and SRX released on Tuesday.

HDB upgraders driving condo resale price increase

Property analysts attributed the condo price growth to Housing Board flat upgraders, supported by the robust HDB resale market.

“The outside central region forms the bulk of home supply and is considered more affordable than other private homes in the other regions.

“Therefore, even when suburban home prices rise, there will still be demand, thus propping up prices in the long term,” she said.

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Condo resale volume: Decreased due to property cooling measures

Resale volume rose 3 per cent, with an estimated 880 units changing hands in August, up from 854 units in July.

However, compared with August 2022, resale volume declined by 16.6 per cent.

Lesser condos sold than August 2022

The number of transactions was also lower than the five-year average for the month of August.

PropNex Realty head of research and content Wong Siew Ying said the year-on-year decline – resale condos in the core central region were affected the most – could be due to the impact of April 2023’s property cooling measures, when Additional Buyer’s Stamp Duty (ABSD) rates for foreigners doubled from 30 per cent to 60 per cent.

She noted that transactions by foreign buyers remained low, accounting for 1.9 per cent of total resale volume in August. Foreign buyer transactions did rise slightly from 1.5 per cent in July, based on caveats lodged.

“Only 15 non-landed resale private homes were bought by foreigners in August, with 13 of the units purchased by buyers from the US, and one each from Indonesia and Myanmar,” Ms Wong said.

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Read more: Property Cooling Measures: How will it affect you?

More 'Sub-Sale' Transactions in Aug 2023

Data also showed that in August, more buyers purchased new condo units that were yet to be completed, commonly referred to as “sub-sale transactions”.

Such transactions accounted for 11.6 per cent of total transactions in August, an increase from 0.5 per cent in July.

ERA Singapore key executive officer Eugene Lim said the larger proportion was due to the 26 condo projects that will obtain their TOP by the end of 2023, including mega-developments such as:

• Treasure at Tampines
• The Florence Residences in Hougang
• Avenue South Residence in Bukit Merah.

“More first-hand investors may choose to sell their properties at this point, when they cross the three-year mark and are no longer liable for seller’s stamp duty. This will also save them the hassle of looking for a tenant amid competition with other investors within the mega-developments,” he said.

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More sub-urban condos sold

The lion’s share of condo resale transactions in August was recorded in the suburbs at 51.2 per cent. Homes in the city fringes accounted for 31.2 per cent, while the remaining 17.5 per cent were in core central Singapore.

The highest transacted price was $11 million for a freehold 2,831 sq ft unit at 3 Orchard By-The-Park.

In the city fringes, the highest transacted price was $6.3 million for a freehold 2,444 sq ft unit at Aalto in East Coast.

In the suburban areas, a 2,239 sq ft unit at Kensington Park condominium, a 999-year leasehold condo in Serangoon, sold for $3.26 million.

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This article was first published in The Straits Times.