It’s still too early to know whether the drop in resale prices are just a blip or the beginning of a market correction.
The price of condos could continue to rise in 2024, as less condos will be constructed. This could lead to a shortage of supply.
The volume of resales fell by 0.6% in January. 740 units were believed to have been sold, down from 745 units traded the hands in December.
The slowdown in the seasonal cycle between the closing of the year to the start of the next year is due to the more cautious mood in the market.
February’s resale volume to remain fairly muted due to the Chinese New Year holidays and festivities.
Certain buyers are more cautious when purchasing an apartment, due to their concerns about the possibility of inflation or the uncertain economic outlook.
Some may be sitting on the sidelines, as they await interest rates to moderate further, which will increase the affordability of housing.
Condominium resale prices dipped in January following a rise of five months in a row, but property analysts said it is too early to tell whether prices have stabilized.
Flash data from Singapore Real Estate Exchange (SREX) and 99.co, two real estate websites, showed that resale prices fell by 0.8 percent in January following a 0.5 percent rise in December.
Rates of interest have remained elevated, limiting buyers willingness to shell out a premium for resale condos, which decreased prices in January.
Even then the resale cost in the prime market was up 1.4 percent, whereas prices in the suburbs rose by 0.2%.
The suburbs’ prices are supported by new homes.
The resale price in the city’s fringe dropped by 0.6%, reversing an increase of 0.7 percent in the area in December 2023.
There were more older resale units which were sold at a less per square foot and had a more space for floor. They are extremely popular with buyers looking to purchase their own house.
Data showed that condo resale prices increased by 7.2 percent on an annual basis. Prices in suburbs were at the top, at 9.9%.
The number of transactions also 0.4 percent more than the five-year average for the month of January.
As more residential developments become available in the coming months private home prices will rise.
Prices of condos for resale could rise by 4 to 6 percent by 2024, due to recent condo launches.
The lion’s share of condo resales transactions in January was recorded in the suburbs, at 53.8 percent. The suburbs comprised 27.3% of the total, with the remainder being in the prime districts.
The most lucrative price for sale was $16.5 million each for two freehold, 3,057 sq feet units in The Ritz-Carlton Residences, a luxurious condo located in the Orchard region.
Mr. Yuan Yonggang and his wife purchased the two adjacent apartments in separate transactions.
Both are thought as permanent residents in Singapore.
The highest price paid for the 2,971 sq. feet. freehold unit at MeyerHouse was $9.28million.
In the suburbs in the suburbs, a 2,573 square foot apartment in the Grand Duchess area Grand Duchess was sold for $3.9 million.