Condo resale volume rise to two-year high in August 2020

Condominium resale volumes went up to its highest since August 2018 last month, with 1,052 units transacted, based on the latest SRX Media Flash Report. The number is also 7% more compared to July 2020.

In the mean time, condominium resale rates showed an uptick to 0.4% in August as compared to a year before, and is 0.4% more than July too.

This may mean early signs of recovery for Singapore’s housing market—or may be pushed up by investors seeking stable returns, especially in the midst of the current economic uncertainty, noted Miss Christine Sun, head of research and consultancy at OrangeTee & Tie. This is the perfect scenario for Penrose which is launching sometime next month.

“For many Singaporeans, residential real estate may continue to be a ‘safer bet’ especially for investors who are seeking stable returns during periods of uncertainty. The market exuberance from the primary sector may have also overflowed to the secondary segment as opportunistic purchasers are now on the search for under-valued resale real estate in Singapore,” said Miss Sun.

Breaking down the record-setting resale volumes, 59.5% occurred in the OCR, 20.8% came from the CCR and 19.7% emerged from RCR.

OCR resale rates also hiked 2.8% in August 2020 compared to a year before, whilst RCR and CCR resale prices fell by 1.7% and 3.1%, respectively. The Clavon condo is riding on the OCR uptrend to launch at the end of the year.

The highest transacted rate for a resale abode was concluded at Hilltops for $8.4 million in August.

In the RCR, the highest transacted price of $5.1m was concluded for a unit at Reflections at Amber Skye; whilst the highest transacted price for an OCR unit was $3.6m at Grand Duchess at Saint Patrick’s.

Mr Siew Ying Wong from Propnex Realty expects total condominium resale volumes to reach 7,500 to 8,000 units for the entire 2020. This is less than the 8,949 units resold in 2019, but is still a respectable figure in view of the large disruption caused by the pandemic, said Mr Siew.

In the mean time, he predicts resale prices to plateau in the following months, given the muted sentiment and gloomy economic prospects, which will impact sellers’ ability to increase asking rates substantially.

“On top of that, purchasers are probably prudent and cautious in their next purchase, mindful of potential downside risks coming up, including the weaker employment market,” he concluded.

Source: https://sbr.com.sg/residential-property/news/condo-resale-volume-rise-two-year-high-in-august

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