Singapore condo resale prices up 0.5% in February
Sellers are increasing their asking prices, taking the cue from the primary market which has seen price resilience in many new project launches.
Private resale prices for non-landed homes continued to trend up in February 2019, up 0.5% from January, after two consecutive months of cooling in December and January, according to monthly figures from real estate portal SRX Property. The overall resale price index had also risen 4.6% YoY and is now less than 0.9% below the peak price in July 2018.
An estimated 523 units were resold in February, representing an 8.7% decrease from the 573 units resold in January, and a sharper 56.7% decrease from the 1,207 units resold in February 2018.
Christine Sun, head of research & consultancy at OrangeTee & Tie noted that sellers in the secondary market had also increased their asking prices in recent months, taking the cue from the primary market which has seen price resilience in many new project launches.
"As resale condos are generally larger in size than new condos, the price quantum of resale homes may breach the affordability threshold of buyers when the units are pegged too close to the prices of new homes on a per square foot basis. Therefore, some potential buyers may have turned to the primary market, where smaller but more affordable options are available," noted Sun.
"As a result, demand for resale homes continued to fall as sales volume fell 8.7% MoM and 56.7% YoY. The effects of the cooling measures and uncertainties surrounding the global economy may continue to weigh on the resale market. Competition for buyers may also intensify as more than 60 new projects are slated to be launched this year," Sun said.