Condominium resale market strengthens in Singapore

The number of purchases is almost double the five-year average.

What happened? Home prices in Singapore rose for the fourth straight month, rising 0.3% month-on-month in November, according to SRX Property. On an annualized basis, real estate has risen 1.3% compared to November 2019, according to the local newspaper The Straits Times.

The cost of selling “resale” in the main central region (CCR), the rest (RCR) and beyond (OCR) rose by 0.5%, 0.1% and 0.3%, respectively, from October to November.

This is a positive trend, given that, under the influence of the pandemic, the country’s real estate market has slowed down significantly.

Details

  • Resales of private condominiums rose 1.4% from October to November to 1,426 units, SRX data showed. This is 83.5% more than in the previous year, and 76% higher than the average November value for five years.
  • The number of transactions for the resale of private houses in the first 11 months of 2020 exceeded 9,200 units, which is already more than 8,949 for the entire 2019. The figure has the potential to surpass 10,500 units this year, although it is unlikely to hit the 13,009 ceiling in 2018, SRX analysts say.
  • Demand and prices for secondary homes have been subdued as the authorities introduced cooling measures in July 2018, bringing the number of monthly transactions to below 1,000 units. But from July to November, the market recovered strongly, thanks to deferred demand and a strong recovery in the Singaporean economy.

Quote. Kristin Sun, head of research and consulting at OrangeTee & Tie, said: “Many investors are no longer paying attention to the current obstacles, hoping for the success of the vaccine, and looking optimistically at the country’s economic future. We expect resale sales to grow moderately by 8-10% next year, to around 9,000-10,000 units. As for prices, we do not think they will rise by more than 1%. “

Although Knight Frank experts believe that next year, premium housing in Singapore will rise in price by 3%.

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Author: Chief Editor