May 2023 condo resale prices climbed for a fourth consecutive month as buyers continue to turn to resale properties amid the sizeable price gap between new private homes and those on the secondary market.
In May, an estimated 946 condo resale units changed hands, an 8.9% increase from the 869 units resold in April.
However, May resale condo prices edged up at a slower rate of 0.9% compared to 1.3% in April.
May 2023 Condo Resale Prices
May 2023 Condo Resale Volumes
Market Analysis and Summary of Key Points
- The price gap between new and resale condos widened to 62.3% in May from 60.9% in April.
- Budget-conscious home buyers diverted their attention to the resale market due to the large price difference versus new property launches.
- Resale volumes have remained below 1,000 units due to various factors including since the cooling measures introduced in September 2022 to moderate demand and ensure prudent borrowing. Resale volumes were also affected by mismatched price expectations, limited supply, and high-interest rates.
- A slew of new property launches may have diverted attention from the private resale market.
- Most condo resale transactions in May were recorded in the suburbs, or outside the central region (50.7%). This was followed by the city fringe (31.8%) and central region (17.5%).
- HDB upgraders helped to prop up the transaction volumes in the suburbs, with lower resale prices helping to avoid paying more stamp duty fees.
- Higher ABSD rates have affected foreign buyers, leading to a decrease in their proportion. Nevertheless, some wealthy foreign buyers were still seen in the market, accounting for 3.9% of the sales in May, down from 4.9% the month before.
- Some buyers prefer purchasing incomplete condo units (sub-sale) to save on renovation costs. These transactions accounted for 8.6% of total resale transactions in May, the second-highest proportion since sub-sale monthly transactions hit a historic low of 0.7% in October 2020.
- The high rental market has continued to support the secondary condo market, with market analysts projecting a price increase of 7-10% for 2023.
Meanwhile, a slew of new property launches have hit the market. Cognizant of the competition, developers have been pricing their developments more realistically. For example, Lentor Hills Residences has been launched from $1,834 psf and The Myst at $1,862 psf.
Other new property launches in the pipeline include the following:
For more information on new launches or if you have any queries about the property market, please WhatsApp Me.
