Condo resale prices rise for 21st straight month in April
Condo resale prices rise rose for the 21st straight month in April, while transaction volumes dipped slightly as the market steadied after property cooling measures.
Resale prices for condos rose 0.7% last month, down from 0.8% in March, according to the latest data released by real estate portals 99.co and SRX on Tuesday (May 10).
Compared to April last year, prices rose 9%, the data showed.
Christine Sun, senior vice president of research and analysis at OrangeTee & Tie, noted suburban apartment prices hit their highest level since 1995, up 10.8 per cent from April last year.
“This is likely due to an increase in buyers shifting from the primary market to the secondary market due to tight supply of new homes in the suburbs,” she said.
With the supply of new homes expected to remain low this year, resale home prices in the suburbs are expected to remain high, she added. One of the upcoming new launch is Lentor Modern in Lentor Central.
Meanwhile, resale volumes fell 2.2%, with an estimated 1,368 units changing hands last month, up from 1,399 units the previous month.
Resale transactions were down 31.3% from April last year, but still 17.8% above April’s five-year average.
That could mean the resale market is recovering four months after property cooling measures were introduced, property analysts said.
In December last year, the ABSD rate was increased from 12% to 17% for citizens buying a second home, and from 15% to 25% for citizens buying a third and subsequent home.
The overall debt service ratio for borrowers has tightened from 60% to 55%.
Resale volumes have fallen for six straight months since September last year, but rose in March as safety management measures eased, allowing more properties to be visited.
“Despite the slight drop in transaction volume, the total resale volume in April was still more than 1,300 units, well above the number of transactions completed in January and February,” Ms Sun said.
But Huttons Asia chief executive Mark Yip said the recent rule change, which required a 35 per cent ABSD for residential property transfers to living trusts, had created some uncertainty.
“Buyers can weigh a more tax-efficient way to buy property for their children,” Mr Ye said.
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