Despite a lower volume, condo resale prices only slightly increased

The condo resale market has always been a dynamic one, reflecting the pulse of the real estate sector. This September, we observed a peculiar trend: a slight increase in condo resale prices despite a significant drop in the resale volume.

Numbers and data collected from the flash report made by 99.co’s Mr. Luqman Hakim, Chief Data & Analytics Officer.

Factors influencing the condo resale volume drop in September 2023

A flurry of events and activities probably prompted the drop in September’s resale volume, the lowest volume in the past 8 months,” said Mr. Luqman Hakim

Several events and activities in September might have contributed to the dip in resale volume, marking it the lowest in the past eight months.

The launch of new BTO Flats, the Hungry Ghost Festival, the PSLE examination period, and the September school holidays all played a role in this decline.

Read more: Condo and HDB rental markets dip in volumes in August 2023

Price trends and analysis

Despite the drop in volume, condo resale prices saw an increase of 0.8% in September. When we break it down by region, RCR led the way with a growth of 1.2%, followed by CCR at 0.5%.

However, OCR witnessed a decrease of 0.4%. According to the SRX Price Index for Condo Resale, there was a month-on-month increase of 0.8% over August 2023 and a year-on-year increase of 7.6% over September 2022. All regions experienced a year-on-year price increase, with RCR leading at 8.1%.

Resale volume insights

In September 2023, an estimated 738 units were resold, marking an 18.4% decrease from the 905 units in August 2023. This volume is 35.9% lower than September 2022 and 22.0% lower than the 5-year average for September.

A regional breakdown shows that 53.1% of the volume came from OCR, 31.4% from RCR, and 15.5% from CCR. Interestingly, the percentage of sub-sale transactions to total secondary sale transactions was 10.8%, a 1.2% decrease from August 2023.

Top transacted prices

The highest transacted price for a resale unit in September was a whopping $32,000,000 at GOODWOOD RESIDENCE (Bukit Timah).
In RCR, a unit at The Cascadia was resold for S$7,260,000; in OCR, a unit at Seaside Residences went for S$4,060,000.

Read more: HDB rental prices and latest rental transactions in 2023

Capital gains and returns analysis

The median capital gain for resale condos in September 2023 was S$350,000, a rise of S$32,000 from August 2023. District 21 (Clementi Park / Upper Bukit Timah) boasted the highest median capital gain at S$894,000, while District 1 (Boat Quay / Raffles Place / Marina) had the lowest at S$14,000.

The overall median unleveraged return for resale condos stood at 29.2% in September 2023. Again, District 21 led with a return of 70.8%, while District 1 lagged at 1.1%.

Conclusion

While some home sellers are taking advantage of the current climate to realise those potential gains, they will have to tread carefully so as not to find themselves paying higher for their next property,” Mr. Luqman Hakim said.

The condo resale market in September 2023 presented a mix of trends, with prices increasing despite declining volume. As the market continues to evolve, sellers looking to capitalise on the current climate should move cautiously, while buyers should stay informed to make the best decisions.

The coming months will reveal if these trends persist or if new patterns emerge.