Condo resale prices rise for 22nd straight month in May, more units sold
Condo resale prices rise for 22nd straight month in May, more units sold. In May, resale condominium unit prices rose for the 22nd consecutive month, with transactions increasing as buyer sentiment improved despite property cooling measures.
According to flash figures released on Tuesday by real estate portals 99.co and SRX, condominium resale prices rose 0.3% in May, down from 0.7% in April (June 14).
Prices were 8.4 percent higher in May of this year than in May of last year, according to data.
Prices of condominiums on the city outskirts rose by 0.7% in May, while those in the suburbs rose by 0.5%, while those in the core central region fell by 1.2%.
Huttons Asia CEO Mark Yip stated that the successful launches of two projects on the city outskirts – Piccadilly Grand in Farrer Park and [email protected] in East Coast – resulted in demand spilling over to the resale market last month, supporting the price increase.
Meanwhile, resale volume increased by 1.6% in May, with an estimated 1,572 units changing hands, up from 1,547 in April.
Resale transactions fell 11% from May of last year, but were still 40.2 percent higher than the five-year average for the month.
Analysts believe this could indicate that the resale market is on the mend, five months after property cooling measures were implemented last December.
In December, the additional buyer’s stamp duty (ABSD) rates were raised from 12% to 17% for citizens purchasing their second residential property, and from 15% to 25% for those purchasing their third and subsequent properties.
The ABSD is now 30% for foreigners purchasing any residential property, up from 20% previously.
With the relaxation of Covid-19 restrictions, resale volume has been increasing since March, rebounding from a six-month decline that began last September.
According to OrangeTee & Tie senior vice-president of research and analytics Christine Sun, the strong buying sentiment in the condominium resale market was reflected in the new sale market last month.
“This suggests that buying sentiment has generally improved across the various housing segments and may pick up even more in the coming months,” she said.
“Growing macroeconomic uncertainty may also encourage more investors to park their money in safe-haven assets such as real estate,” she added.
Wong Siew Ying, PropNex Realty’s head of research and content, stated that some of the firm’s real estate agents have noticed a shortage of resale condominium stock as some owners choose to keep their properties.
“With the hefty additional buyer’s stamp duty, some owners who purchased multiple residential properties prior to the cooling measures may be unwilling to sell now,” she said, adding that the strong home rental market could be another factor.
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