After 5 months of growth, resales condo price fell $1,088psf

SINGAPORE Condominiums resale values dropped in January following five consecutive months of increases, but property experts said it was still too soon to determine whether prices were stabilizing.
data flash from the real estate portals Singapore Real Estate Exchange & 99.co on February 26 showed that resale values declined by 0.8 per cent during January, reversing 0.5 percent growth in December.
Interest rates remain high, limiting the willingness of buyers to pay high prices, which moderated January’s prices.
Even then, the price of homes in prime areas continued to increase by 1,4%, while prices in suburbs grew only 0.2%).
The central core of Singapore has seen more high-value deals, while prices in the suburbs were boosted by newly constructed homes.
Resale Prices in the City Fringe fell by 0.6%. This is a backpedaling of a 0.7% increase in December 2023.
“There are more older resale homes that have a higher floor area and were sold at a cheaper price per sq. ft. These are popular for buyers looking for a place to call home.
The data shows that, on a year-over-year basis the prices of condos resold rose by 7.2 percent, and those in suburbs grew the most, by 9.9 percentage points.
It is too soon to tell whether the recent decline in resale rates is just a passing blip or if it is the beginning of market correction.
Prices could increase further in 2024 if fewer condos were to be completed.

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The volume of resale fell slightly in January by 0.6 percent. 740 units changed hands in comparison to 745 in December. This marks the 3rd consecutive month with a declining resale.
The market’s cautiousness and the seasonal slump between the end of year and beginning of new year are credited with the drop.
In light of the Chinese new year holidays and celebrations, February’s resale will remain relatively low.
Some buyers have resisted buying an investment property because they were worried about the inflation rate and an uncertain outlook for global economic growth.
Other buyers may be waiting in anticipation of a further reduction in interest rates, which would improve housing affordability.
Resale volume has increased 43.7 percent compared to January 20, 2023. This indicates that the resale marketplace is still healthy.
The number also was 0.4 % higher than five-year monthly average.
The price of residential property will increase in the near future as more developments are opened.
The increased prices for new condos would increase prices of existing condos. In 2024, condo prices could rise anywhere from 4 to 6 percent.