The recently published article on finding hot resale condo units sheds light on the evolving trends in Singapore's real estate market. As a seasoned realtor with extensive experience in the industry, I would like to share my perspective and provide valuable insights into this dynamic market.
The rising popularity of resale properties can be attributed to several factors, such as their affordability and spaciousness. The widening price gap between new and resale condos has further fueled the demand for resale units. According to the Urban Redevelopment Authority (URA), this price gap has continued to increase, reaching 62.9% in the first five months of 2023. This trend has led many buyers to explore the secondary market as an attractive alternative.
One significant driving force behind the surge in resale condo demand is the additional buyer's stamp duty (ABSD) imposed on buyers of new properties. The ABSD has prompted more homebuyers to consider resale condos, as it allows for immediate occupancy without the need to pay the ABSD upfront. For those upgrading from Housing Board (HDB) flats, this flexibility is particularly appealing.
The article highlights the strong demand for larger suburban condos, driven by the need for dedicated workspaces in the era of hybrid work. The scarcity of new projects in suburban areas has contributed to the heightened interest in these properties. Districts such as Hougang, Serangoon Garden, Punggol, Bedok, Upper East Coast, and Bukit Panjang have emerged as sought-after locations for resale condominiums. These units, ranging from 1,000 to less than 1,400 sq ft, have witnessed high transaction volumes, with 92% sold below $2 million.
Buyers seeking affordability have also turned to resale executive condominiums (ECs), with transactions for these units surpassing the average sales recorded over the past 13 years. Resale ECs of at least 1,000 sq ft but less than 1,400 sq ft have garnered significant interest, offering an attractive median price of around $1.4 million.
It's worth noting that buyers' preferences extend to freehold and leasehold condos, with units below 30 years old being particularly favored. The lease tenure remains a significant consideration for resale buyers, and condos of at least 10 but less than 15 years old have seen substantial demand. This indicates that buyers prioritize both generous living spaces and a substantial balance lease.
Luxury properties in prime districts continue to attract interest despite higher interest rates and cooling measures. The presence of ultra-high-net-worth individuals with a strong intent to invest in real estate has contributed to the resilient demand for luxury homes. Developments such as Royalgreen, Petit Jervois, and Juniper Hill have seen increased transactions, with Districts 9 and 10 accounting for a significant portion of sales.
Looking ahead, the resale market is expected to see continued activity as a significant number of landed, non-landed, and EC units are set to be completed in 2023. This influx of new properties will contribute to a seven-year high in housing supply, potentially stabilizing property prices. It's projected that resale prices may experience slower growth of 5% to 8% in 2023, down from 8.7% in the previous year.
As a trusted realtor in Singapore, I am well-positioned to guide you through the intricacies of the resale condo market. Whether you're a first-time buyer, an investor, or someone looking to upgrade, my expertise and personalized assistance can help you make informed decisions. Contact me today for a consultation and let's navigate the resale condo market together.
Call to Action: Reach out to me, your trusted realtor in Singapore, for expert guidance and support in your resale condo journey. Contact me now to discuss your property needs and benefit from my comprehensive market knowledge and professional assistance.