Condo Resale Prices Climb 1.5% in April as Volumes Hit 13-Month High: SRX, 99.co

In a remarkable display of market resilience, condominium resale prices in Singapore surged by 1.5% in April 2024, according to the latest data from SRX and 99.co. This rise comes as transaction volumes reached their highest levels in 13 months, indicating a strong and sustained demand for resale properties amidst varying economic conditions.

Market Overview
April 2024 proved to be a significant month for the condo resale market, with both prices and volumes showing robust growth. The 1.5% increase in resale prices is not just a monthly spike but part of a broader trend of gradual appreciation observed over the past year. This uptick can be attributed to a variety of factors, including increased buyer confidence, favorable lending conditions, and a growing preference for resale units over new launches. Transaction volumes in April reached a peak not seen since March 2023. This surge in activity suggests that the market is not only stable but also expanding, with more buyers and sellers engaging actively. The volume increase is particularly noteworthy as it reflects a significant recovery from the subdued activity seen in previous months, partly due to economic uncertainties and pandemic-related restrictions.

Drivers of Price Increase

Several key factors have contributed to the 1.5% rise in resale condo prices:
1. Economic Stability and Recovery: As Singapore’s economy continues to recover from the impacts of the COVID-19 pandemic, consumer confidence has strengthened.Improved job security and economic prospects have empowered more individuals to
invest in property, driving up demand.
2. Low Interest Rates: Persistently low interest rates have made home loans more affordable, encouraging more buyers to enter the market. This has had a direct impact on the demand for resale condominiums, as they often present a more immediate and
sometimes more affordable option compared to new developments.
3. Limited New Supply: With fewer new condominium projects being launched, buyers are increasingly turning to the resale market. This shift is partly due to construction delays and rising costs in new developments, which have made resale units a more
attractive option.

4. Desirability of Mature Estates: Resale condos in mature estates, which offer established amenities and infrastructure, have seen particularly high demand. Buyers are often willing to pay a premium for the convenience and accessibility that these
locations provide.

Geographical Trends

The price increase and high transaction volumes were not evenly distributed across all districts. Prime districts, including those in the Core Central Region (CCR), saw significant activity. However, it was the Rest of Central Region (RCR) and Outside Central Region(OCR) that drove much of the volume growth.
1. Core Central Region (CCR): The CCR experienced a moderate increase in prices, driven by high net-worth individuals and foreign buyers looking for luxury properties.The scarcity of available units in this area further amplified the price hike.
2. Rest of Central Region (RCR): The RCR saw a robust uptick in both prices andvolumes. This region offers a good mix of affordability and proximity to the central business district, making it a popular choice among local buyers.
3. Outside Central Region (OCR): The OCR, known for its relatively affordable housing options, witnessed the highest increase in transaction volumes. This region appeals to first-time homebuyers and upgraders who are seeking value for money.

Buyer Demographics
The resurgence in the condo resale market has been fueled by a diverse range of buyers.Young professionals, expatriates, and local upgraders are among the primary drivers of demand.
 Young Professionals: Many young professionals, buoyed by stable incomes and the desire for homeownership, have been active in the market. Their preference for well-located, moderately priced condos in the RCR and OCR has significantly contributedto the market dynamics.
 Expatriates: With Singapore’s borders gradually reopening, there has been an influx of expatriates looking for rental and purchase options. Many prefer resale condos due to their immediate availability and established locations.
 Local Upgraders: Existing homeowners looking to upgrade from HDB flats to private condos have also been a significant force in the resale market. The improved economic conditions and attractive loan packages have facilitated these upgrades.

Future Outlook
The positive trends observed in April 2024 are likely to continue, albeit at a potentially moderated pace. Analysts predict that while prices may continue to rise, the rate of increase could stabilize as the market adjusts to the new levels of demand and supply.
1. Sustainable Growth: The market is expected to sustain its growth trajectory, driven by ongoing economic recovery and stable employment rates. However, the pace of price increases might moderate as more supply comes online.
2. Government Policies: Any changes in government policies, such as adjustments to cooling measures or changes in loan-to-value limits, could impact the market. The government’s proactive stance in maintaining market stability will be a key factor to
watch.
3. Global Economic Factors: External economic conditions, including interest rate movements by major economies and geopolitical events, will also play a crucial role.These factors can influence buyer sentiment and investment decisions.
4. Technological Advancements: The adoption of digital platforms and virtual tours has made it easier for buyers to explore properties, enhancing market efficiency. This trend is likely to continue, making property transactions more seamless.

Conclusion
April 2024 marked a significant milestone for Singapore’s condominium resale market, with a notable 1.5% increase in prices and the highest transaction volumes in over a year. This robust performance underscores the market’s resilience and adaptability amidst changing economic landscapes. With continued economic recovery, favorable lending conditions, and a steady demand for well-located properties, the future of the condo resale market looks promising. Buyers and sellers alike will need to stay informed and agile to navigate this dynamic environment.