In a significant development for Singapore's real estate market, condominium resale prices rose by 1.5% in April, marking a resurgence after a period of stabilization over the past six months. This uptick in prices coincided with a surge in transaction volumes, reaching a 13-month high.
According to flash data from real estate portals SRX and 99.co, a total of 1,122 condo units were resold in April, a substantial increase from the 911 units transacted in March. This 25.8% year-on-year rise is also 17.6% higher than the five-year average for April, underscoring the robust demand in the resale market.
Market Dynamics and Foreign Interest
The rise in resale transactions was particularly notable in the Core Central Region (CCR), where sales increased by 23.3% compared to March. Transactions in the CCR accounted for 22.8% of total resale volumes, while the Outside Central Region (OCR) and the Rest of Central Region (RCR) comprised 45.4% and 31.8%, respectively.
Property analysts from leading agencies such as Huttons, PropNex, and Singapore Realtors Inc (SRI) have attributed this growth to increased activity from foreign buyers. Eugene Lim, key executive officer of ERA Singapore, highlighted that developments like The Residences at W Singapore Sentosa Cove and Cuscaden Reserve attracted buyers due to their perceived undervaluation, with some units transacting at nearly 40% below their launch prices.
Attractiveness of Singapore as a Safe Haven
Mark Yip, CEO of Huttons Asia, pointed out that ultra-high-net-worth individuals are increasingly viewing Singapore as an attractive destination due to its business-friendly environment and stable political landscape. This has likely contributed to the sustained interest in prime district properties.
However, it is noteworthy that foreigner purchases have moderated significantly compared to the previous year. PropNex CEO Ismail Gafoor noted a sharp decline in caveats lodged by foreigners—from 166 in the first four months of 2023 to just 47 in the same period in 2024. This decline can be attributed to the higher Additional Buyer's Stamp Duty (ABSD) imposed on foreign buyers.
Impact of New Project Launches
Christine Sun, chief researcher and strategist at OrangeTee Group, suggested that the increased marketing activities surrounding new project launches have raised buyer awareness and interest in resale condominiums in the same areas. The relatively firm pricing of new private homes has also nudged potential buyers towards older, more affordable resale options.
Regional Price Trends
In terms of price movements, the Rest of Central Region (RCR) led the gains with a 2% rise in April, followed by the CCR at 0.3%, and the OCR with a marginal increase of 0.1%. On a year-on-year basis, resale prices saw an overall rise of 5.1%, with the OCR recording the highest gain at 7.2%, the RCR at 5.2%, and the CCR at 0.2%.
High-Value Transactions and Capital Gains
The most expensive condo resale in April was a $13 million unit at The Marq on Paterson Hill in River Valley. In the RCR, the highest price was $8.3 million for a unit at The Peak in Queenstown, and in the OCR, a unit at Windy Heights in Kembangan sold for $5.36 million.
Despite the price increases, the overall median capital gain for resale condos stood at $337,000, which is $40,000 lower than the previous month. District 10 (Tanglin and Holland) posted the highest median capital gain at $763,000, while District 1 (Boat Quay, Raffles Place, and Marina) recorded the lowest at $2,000.
Summary of Key Highlights:
- April Price Increase: Condo resale prices rose by 1.5%.
- Transaction Surge: 1,122 units sold in April, the highest in 13 months.
- Foreign Buyer Activity: Increased interest in CCR properties.
- Safe Haven Appeal: Singapore's stable environment attracts ultra-high-net-worth individuals.
- New Launch Impact: Heightened marketing boosts awareness of resale options.
- Regional Gains: RCR leads with a 2% price rise; OCR up 7.2% year-on-year.
- High-Value Deals: Top resale at The Marq on Paterson Hill for $13 million.
Interpretation of the News
The resurgence in condo resale prices and transaction volumes in April signifies a revitalized interest in the market, driven by a mix of local and foreign buyers. The steady demand for properties in prime locations underscores Singapore's appeal as a safe and stable investment destination. The influence of new project launches has also played a role in diverting attention to resale properties, particularly in regions with significant new developments.
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Source: The Straits Times