The prices of condos for resale increased in March, when volumes increased 17.4 percent

Singapore: The prices of resales condos jumped by 0.4 percent in March. The units sold were higher in March, as the market rebounded from the slump that it experienced in February.

On April 25, the flash information from real estate websites Singapore Real Estate Exchange (SREX) and 99.co showed that prices were up just a bit more than 0.2 percent in February.

Analysts have attributed the steady rise in prices to a mismatch between buyer and expectations of sellers, as well as the high interest rates.

Ms Wong Siew Ying is the director of content and research at PropNex. She stated that although most sellers are willing to negotiations but they don’t want to reduce their asking price significantly due to the high cost of replacing homes.

The data showed that condo resales values increased by 5 percent annually on a basis. The prices in the suburbs were at the top, at 7.1 percent.

Ms Christine Sun is the chief strategist and researcher of OrangeTee Group. She said that there were more condos built in suburban areas in the last couple of months, which could increase the cost of resales units. She said that the latest condos sold for an average price that was more than $2000 per square foot (psf).

She added that “more homeowners are increasing their asking prices, since the prices of new condos in the suburbs are significantly higher than those for resales homes.”

In March, the number of resales increased by 17.4 percent and 883 units are estimated to have been sold as compared to 752 in February.

Huttons Asia’s chief executive Mark Yip attributes this to the resurgence of projects following the Chinese New Year slowdown in March, which had an impact on the market for resales.

He suggested that some owners of condos may have purchased a new condo and then sold their previous one to avoid paying a stamp duty on their second residential property.

Mohan Sandrasegeran said the relaunched luxury condominium Cuscaden Reserve, at “more attractive prices” has rekindled enthusiasm in the private resales market.

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The Straits Times reported that when the project fell short of the initial goal of selling all units that were not sold in 2023, the company offered discounted prices starting at $2,900 for a square. feet.

The ABSD deadline was extended to 2024.

M. Sandrasegeran said that 34 units were sold at Cuscaden Reserve in March. Of these, 76.5 percent went to Singaporean buyers.

He added that the increase in sales “highlights the value of strategically placed development projects that add an advantage to the market at the moment.”

In comparison, the volume of resales decreased by 22,8 percent when compared to March 2023. The volume of sales were also down by 12 percent when compared to the average monthly five-year number for March.

PropNex’s Ms Wong stated that foreign purchases have increased by 1.3 percent of the overall amount of resales during March. This was up from 0.5 percent in February. 11 units were sold to foreign buyers.

She noted that the there was a demand for resales of properties from foreign buyers had slowed significantly following the ABSD increase in April 2023. In the year 2023 the cost for foreigners buying residential properties was increased from 30 to 60 percent.

She added: “We expect the foreign investment market to remain in check due to the hefty ABSD tax.”

In the month of March, 48.2 percent of all condo resales took place in the suburbs. The suburbs comprised 31.6 percent, the remainder located in prime areas.

The most expensive price was $8.7million for a 2,971 square foot 99-year leasehold located at Corals located in Keppel Bay.

One square. feet. unit located in the Seaside Residences, Marine Parade’s 99-year leasehold condominium was sold for $3.41m.