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Condo resale volume dropped for the 3rd straight month, prices increase 1.2% in July 2022

·3-min read

Condo resale volume has dropped by 6.7% in July, despite a month-on-month price increase of 1.2%. As reported in the flash report by 99.co and SRX on the condo resale market in July 2022, condo sales have dropped by 30.7% year-on-year.

In particular, condo resale volume has been on the downtrend since April. Possible reasons for this include a wait-and-see approach by HDB upgraders and condo buyers as prices are rising, and upcoming new launch condo projects such as AMO Residence and Enchante.

Rising US interest rates and mortgage interest rates may also have dampened demand from some buyers. Some may opt for public housing instead due to accessibility to the HDB concessionary home loan, which has a fixed interest rate of 2.6%.

On the supply side, owners may have chosen to hold on to their properties and continue renting them out, given the robust rental market.

According to Christine Sun, Senior Vice President of Research and Analytics at OrangeTee & Tie, another possible reason for the lower demand is a mismatch in price expectations between buyers and sellers.

“As overall prices have already risen for 24 consecutive months, which is quite a long time, and there are rising uncertainties surrounding the global economies and increasing interest rates, some buyers may not be willing to match some sellers’ asking prices. On the other hand, sellers have no pressure to cut prices. Some sellers still expect prices to rise further, given the robust housing demand from HDB upgraders and supply lag in the suburbs.”

infographic on condo resale market in July 2022
infographic on condo resale market in July 2022

Increase in median capital gain

Among all the districts, District 21 (Clementi, Upper Bukit Timah) saw the highest median capital gain at S$900,500, as well as unlevered and levered returns of 78.5% and 237.8%, respectively.

Sun noted that some districts have seen their median capital gains increase substantially since the runup in home prices over the past year.

For instance, a year ago in July 2021, the median capital gain for District 21 was S$435,000. Likewise, District 11, which posted the highest median capital gain last month at S$800,000, saw an increase from S$208,000 in July 2021.

Sun added that this trend is observed in the OCR where supply is tight. OCR districts with a substantial increase in median capital gain include District 23 (Bukit Batok, Bukit Panjang, Choa Chu Kang) at 175.2%, District 27 (Sembawang, Yishun) at 116.9% and District 19 (Hougang, Punggol, Sengkang) at 70.8%.

Resale condos for sale

See all listings

The Hyde Photo
The Hyde Photo

The Hyde

11 Balmoral Rd · D10

bedroom
bedroom

3

bathroom
bathroom

3

1,249 sqft

$3,843,000

Cape Royale Photo
Cape Royale Photo

Cape Royale

17 Cove Way · D4

bedroom
bedroom

3

bathroom
bathroom

3

1,680 sqft

$3,480,000

Harbourlights Photo
Harbourlights Photo

Harbourlights

66 Telok Blangah Rd · D4

bedroom
bedroom

2

bathroom
bathroom

2

807 sqft

$1,620,000

Rivervale Crest Photo
Rivervale Crest Photo

Rivervale Crest

5 Rivervale Cres · D19

bedroom
bedroom

3

bathroom
bathroom

3

1,442 sqft

$1,250,000

Kingsford Waterbay Photo
Kingsford Waterbay Photo

Kingsford Waterbay

72 Upp Serangoon View · D19

bedroom
bedroom

3

bathroom
bathroom

2

850 sqft

$1,100,000

Parc Riviera Photo
Parc Riviera Photo

Parc Riviera

101 West Coast Vale · D5

bedroom
bedroom

2

bathroom
bathroom

2

710 sqft

$1,108,888

Nouvel 18 Photo
Nouvel 18 Photo

Nouvel 18

18 Anderson Rd · D10

bedroom
bedroom

4

bathroom
bathroom

4

2,476 sqft

$8,192,000

Bellewaters Photo
Bellewaters Photo

Bellewaters

13 Anchorvale Cres · D19

bedroom
bedroom

4

bathroom
bathroom

3

1,163 sqft

$1,550,000

Reflections At Keppel Bay Photo
Reflections At Keppel Bay Photo

Reflections At Keppel Bay

1 Keppel Bay View · D4

bedroom
bedroom

2

bathroom
bathroom

2

1,055 sqft

$1,845,000

The Vermont On Cairnhill Photo
The Vermont On Cairnhill Photo

The Vermont On Cairnhill

12B Cairnhill Rise · D9

bedroom
bedroom

2

bathroom
bathroom

2

893 sqft

$2,328,000

 

What do you think of the drop in condo resale volume? Let us know in the comments section below.

If you found this article helpful, 99.co recommends Public outcry over Orto leisure park and Kampung Kampus moving out of its site to make way for housing and After 4 years, couple puts Art Deco, black-and-white-themed apartment at Sophia Road for sale.

Also, check out the new Aug 2022 HDB BTO overview.

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