Singapore. For the 23rd straight month, the prices of resale condominiums in Singapore continue to increase. In June, the prices rose by 0.8% compared to May’s 0.3%. This is up by a staggering 9.4% compared to the prices in June last year.
Despite the increasing price of condominiums, the resale volume fell by 17.2%, with only around 1,250 units sold in June. This is down more than 200 units from May’s 1,510 number. Compared to June last year, the transactions declined by 17.1%.
According to property analysts, the slowdown in sales is normal in June.
This could also be attributed to global economic uncertainties, said OrangeTee & Tie senior vice-president of research and analytics Christine Sun, who added that condo prices located in the suburbs increased the quickest, at 4.7% over the past six months, and 10.9% over the past year.
“The strong demand from HDB upgraders may have contributed to the steep price increase in the suburbs over the past year,” she stated.
CEO of Huttons Asia Mark Yip stated in an interview with Singapore Business Review that most buyers prefer to travel overseas instead of buying new homes in Singapore.
“The rising interest rates also sent some marginal buyers back to the drawing board as they reassess their budget,” said Yip.
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Despite the declining number of sales in June, it is still higher than the 5-year average for the month. Around 59.7% of condos that were sold were located in the OCR region. Meanwhile, 24.5% of the volume is from RCR, and the remaining 15.7% is from CCR.
The high number of condos sold in OCR could be attributed to more people upgrading their HDB condos.
The highest sold unit for June is located at Nassim Park Residences in the CCR. It resold for S$12.88m.
The volume of condos is expected to rise in July.
“We anticipate that condo resale transactions could see an uptick in July as more buyers, including foreigners’ return to the market. In addition, some buyers may also want to get the deals done before the start of the Hungry Ghost month at the end of July,” said the head of research and content of PropNex Realty, Wong Siew Ying.