Condo resale prices up 0.3% in Oct; fewer units sold following latest cooling measures
Condo resale prices up 0.3% in Oct; fewer units sold following latest cooling measures. Prices for resale condominium apartments rose at a slower rate in October, with fewer units changing hands as a result of recent property cooling measures.
According to data provided on Tuesday by real estate portals 99.co and SRX, condo resale prices rose 0.3% in October, following a 1% increase in September. This is the 27th month in a row of growth. It was the weakest rate of growth since June 2021, when prices remained flat from the previous month. However, prices were up 10.5% from October of last year, with prices in the suburbs rising the most, at 12.3%.
Meanwhile, resale volume dropped 11.6 percent in October, with an estimated 1,240 units transferred, compared to 1,402 in September. In October, resale volume fell by 24.2% as compared to the same month the previous year. According to analysts, the drop was caused by the market’s reaction to the September property cooling measures, which tightened mortgage lending. The drop in volume, according to OrangeTee & Tie CEO Steven Tan, could be attributed to the new 15-month wait period for private home owners under 55 who wish to purchase Housing Board resale flats after selling their private residences. “They might not have sold because the expense of renting in the interim will be extremely expensive,” he said.
Short-term demand from HDB upgraders, according to Mr Tan, may be subdued as the HDB resale market stalls and owners wait longer to sell their homes. PropNex Realty’s head of research, Wong Siew Ying, stated that the supply of resale condos remained limited, as evidenced by the firm’s property agents. “Given the healthy leasing demand and rental upside, many condo owners would rather lease out their units than sell in a landlord’s market,” she explained. “Moreover, many home owners’ financial positions are still generally healthy, and there is no pressing need to sell their properties.”
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