News: Resale condo transactions down 7.8% in 2018

Mar 12, 2019

Units priced below $1.5 million made up 61.8 percent of total resale transactions, up from the 61.1 percent in 2017.

Resale condo transactions fell 7.8 percent year-on-year to 11,215 units in 2018, reported Singapore Business Review citing an Edmund Tie & Co report.

This comes as resale volumes in the second half of 2018 plunged 47 percent from the first half of the year.

More: New Private Home Sales Expected To Slump By 20% In 2019: DBS

Almost half (49.2 percent) of the total transactions last year came from the Outside Central Region (OCR), where 5,520 resale units changed hands.

The Rest of the Central Region (RCR) accounted for 30.4 percent with 3,412 units transacted, while the Core Central Region (CCR) accounted for 20.4 percent with 3,412 resale units sold in 2018.

Units priced below $1.5 million made up 61.8 percent of total resale transactions, up from the 61.1 percent in 2017.

Units above $1.5 million comprised 18.1 percent, while those priced above $2 million accounted for 20.1 percent of the resale transactions last year.

“Although the overall Urban Redevelopment Authority price index had risen by some 7.9 percent, a higher portion of the price increase is typically reflected in the new sales market relative to the resale market. This is not uncommon as the resale market usually consists of older housing stock which is also comparatively more affordable than new units within the same locality,” noted ET&Co.

For this year, the firm expects the resale market to face stiff competition from the new sales market, especially for well-amenitised and well-priced projects.

“Resale volume for non-landed properties is expected to moderate with prices of older leasehold properties likely to face some downside pressure,” noted ET&Co.

Can you afford a condo in Singapore? Check your affordability now. Get more details on the property market outlook for 2019

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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