Condo resale market in September 2024: Prices edge up as buyers return, volumes dip amid competition from new launches

Condo resale market saw a slight price increase in September 2024, a trend possibly driven by the return of buyers waiting for more favourable interest rates. With signs that a rate cut may be on the horizon, potential buyers can now qualify for larger loans and enjoy more manageable monthly payments, thus enhancing affordability in the condo market.

However, the market faces stiff competition from several new launches and alternative housing options. Notably, the recent launch of Norwood Grand, which sold 84 per cent of its units over just two weekends, likely drew some demand away from the resale market.

Additionally, public housing options continue to attract attention, with the ongoing October BTO (Build-To-Order) exercise featuring highly desirable flats in prime locations, appealing particularly to first-time buyers who meet the eligibility criteria.

This combination of factors may have contributed to the observed decline in condo resale volumes during September.

Condo resale price index: Overall increase of 0.8%

According to the SRX Price Index for Condo Resale in September 2024, overall condo resale prices in Singapore rose by 0.8 per cent month-on-month. By region, the Core Central Region (CCR) saw a modest 0.2 per cent price increase, while the Outside Central Region (OCR) experienced a more robust 1.2 per cent rise.

Prices in the Rest of Central Region (RCR) remained unchanged for the month.

Resale condo transaction volume declined by 5.3%

In terms of transaction volume, 1,026 units were resold in September 2024, a 5.3 per cent drop from the 1,084 units sold in August. However, resale volumes were 35.8 per cent higher than in September 2023. The resale volumes were also four per cent above the five-year average for September.

It means that the market remains more active than in previous years despite monthly fluctuations.

Breaking down resale activity by region, 52.6 per cent of transactions were in the OCR, reflecting its continued popularity among buyers seeking more affordable options in the suburbs. Meanwhile, 29.9 per cent of sales occurred in the RCR and the rest 17.5 per cent were from the CCR.

One notable trend is the slight decrease in the percentage of sub-sale transactions (sales occurring before project completion) within the secondary market.

In September 2024, sub-sale transactions made up 7.6 per cent of total secondary sales, a 1.2 per cent decrease from August, indicating a cooling of activity in this particular market segment.

Notable resale transactions in September 2024

Despite broader market fluctuations, high-value condo resale transactions in Singapore have demonstrated the enduring appeal of luxury properties, particularly in prime locations.

In September 2024, several standout deals reinforced the strength of the luxury segment, where well-positioned, prestigious properties continue to command impressive prices.

CCR: $10.25 million at The Orchard Residences

The highest transaction of the month took place at The Orchard Residences, where a 99-year leasehold unit was resold for an eye-watering S$10.25 million. Situated right on top of ION Orchard, The Orchard Residences is synonymous with exclusivity and high-end living.

Taking it into a literal manner, the 56-storey condo is the highest building in Orchard Road.

The Orchard Residences and other properties in this area offer unparalleled access to upscale retail, dining, and entertainment options, making it a coveted address for both local and international buyers. 

This resale transaction in September highlights that despite fluctuations in the overall market, demand for centrally located, ultra-luxurious homes remains strong, particularly among high-net-worth individuals who value prime real estate as a secure investment.

RCR: $6.5 million at Amber Park

In the Rest of Central Region (RCR), the highest transacted price was for a unit at Amber Park, which fetched S$6.5 million. Amber Park, located in the sought-after Katong area, is well-known for its proximity to East Coast Park and a vibrant heritage-rich community.

The development’s prestigious reputation, combined with its accessibility and freehold tenure, makes it an attractive option for buyers seeking a balance between luxury and lifestyle. 

The sale of this unit underscores the continued demand for luxury properties in city-fringe areas. Buyers likely appreciate a more relaxed and exclusive residential environment that is still within easy reach of the central business district.

OCR: $4.3 million at The Trilinq

The highest transacted price in the Outside Central Region (OCR) was S$4.3 million for a unit at The Trilinq. Located in Clementi, The Trilinq is surrounded by many amenities and major transportation networks.

There are several popular primary schools, such as Nan Hua and Pei Tong, within walking distance from The Trilinq, making it attractive especially to families.

The substantial price tag for a unit in this area reflects the growing appeal of high-end living in suburban regions, where spacious homes, privacy, and access to amenities have become increasingly important considerations for buyers.

Capital gains and returns on resale condo units

On the financial side, the overall median capital gain for resale condos in September 2024 was $366,000, a modest increase of $5,000 from August. Notably, District 10 (Tanglin/Holland/Bukit Timah) posted the highest median capital gain, with owners in this prestigious area enjoying a median gain of S$802,000.

In contrast, District 1 (Boat Quay/Raffles Place/Marina) posted the lowest capital gain at only S$16,000.

The overall median unlevered return for resale condos stood at 30.5 per cent in September, reflecting the percentage return based on price appreciation without taking into account financing costs.

District 21 (Clementi Park/Upper Bukit Timah) led the market with the highest unlevered return of 54.5 per cent, while District 1 again posted the lowest at one per cent.

This wide range in returns underscores the varying levels of profitability depending on location, with city fringe and suburban areas showing stronger growth potential compared to the more mature and saturated central business district.

Main takeaway

While condo resale prices in September 2024 have edged up, likely due to improved affordability from anticipated interest rate cuts, the condo resale market is facing competitive pressures from new launches and public housing alternatives.

Resale volumes have dipped in the short term, but demand remains resilient, particularly in the OCR and RCR. With continued new supplies and evolving buyer preferences, the condo resale market is expected to see further shifts in both prices and transaction volumes in the coming months.

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This article was first published in 99.co.