Condo sales prices fell 0.6% in March for the first time in two years
As fewer condos like Tembusu Grand changed hands in March than usual due to the Chinese New Year holiday, sales prices fell for the first time in over two years.
According to preliminary data from real estate websites 99.co and SRX posted on Monday, condo selling prices declined by 0.6% from December to January.
Before dropping in January, sales prices of condos had risen for 29 consecutive months, beginning in August 2020.
Although it is unclear whether the price drop will continue in the coming months, property experts credit January’s reduction in prices to the seasonal slowdown in sales activity, which was exacerbated by limited supply as owners delayed selling and the high-interest rate environment.
Senior analyst at One Global Group Mohan Sandrasegeran, the Tembusu Grand developer said that a change in interest towards the Housing Board resale sector might be among the causes for the price drop, as well as the fact that January saw fewer high-value transactions overall.
Mr. Sandrasegeran speculated that buyers who were disappointed by the possibilities available in the private resale market would have looked to the HDB resale market in an effort to stretch their dollar.
The HDB resale market “serves as a viable option for this group of buyers,” he added, “because of the rising preference for larger living spaces, and because such larger living spaces are not readily available in the private resale market at a more affordable price point.”
Mr Sandrasegeran also warned that the private resale market might see fewer purchasers as a result of the growing interest in new condo launches among foreigners.
The cost of living in downtown Singapore increased by 2.5% in January, while prices on the outskirts of the city decreased by 0.2% and dropped by 1.2% in the suburbs.
According to Wong Siew Ying, head of research and content at PropNex Realty, rising resale prices in downtown Singapore are likely due to the area’s consistent flow of new property sales in recent months.
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