Condo resale prices rise for 24th straight month in July, volume falls 30.7% year on year
Condo resale prices rise for 24th straight month in July, volume falls 30.7% year on year. In July, resale condominium unit prices increased for the 24th consecutive month, while sales fell as interest rates rose. According to flash data from real estate websites 99.co and SRX provided on Wednesday, condo resale prices increased at a faster pace of 1.2% in July compared to June’s 0.8%. (Aug 10). Data indicated that prices had increased by 9.8% since July of last year.
Meanwhile, the number of resales dropped from 1,338 units in June to 1,248 units in July as expected, a 6.7% reduction. Even though they were down 31.7% from July of last year, resale sales were still 4.4% higher than the July five-year average.
Property analysts attributed the fall to a difference in buyers’ and sellers’ expectations regarding price, which was brought on by rising mortgage rates. According to Christine Sun, senior vice president of research and analytics at OrangeTee & Tie, some buyers might not be willing to match some sellers’ asking prices given the uncertainties surrounding the global economy. “Sellers, on the other hand, are not under any pressure to lower prices. Given the strong housing demand from Housing Board upgraders and the supply gap in the suburbs, some sellers still anticipate price increases, she continued.
According to senior analyst Mohan Sandrasegeran of One Global Group, the introduction of AMO Residence, which most likely piqued investors’ and purchasers’ interest in the new launch market, may have contributed to the fall. Over 98% of the units in the 372-unit Ang Mo Kio development, which is the estate’s first significant private residential project in more than eight years, were sold during the unveiling on July 23.
In the preceding month, 59.1% of all condo transactions took place in the suburbs. 24.6% of all dwelling units were located in suburban areas, and 16.3% were found in Singapore’s central business district. Wong Siew Ying, head of research and content at PropNex Realty, asserted that HDB upgraders and owner occupiers have helped to boost sales and prices in the suburbs, despite the fact that some buyers look to the mass market for more affordably priced private condos. In general, she added, “we expect would-be buyers with a tighter housing budget to continue seeking out other buying options on the resale market amid firm new launch prices and rising interest rates.”
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