Prices of resale condos in the suburbs fell the most by 1.6 percent in August from the previous month.
The brunt of the government’s latest property cooling measures has been more evident in Singapore’s resale market than the new property sale market, Savills Singapore research & consultancy director Alan Cheong told Singapore Business Review.
Prices of resale condos in the Rest of Central Region was hit the most as it fell 1.6 percent month-on-month in August, revealed property data. Resale condo prices in the Core Central Region slid 0.2 percent while those in the Outside Central Region inched up by 0.8 percent. Overall, prices of resale condos fell by 0.2 percent in August.
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The sales volume also plunged, with resold condo units dropping 35.3 percent to 694 units in August from 1,072 units in July.
With this, buyers and sellers are still testing the waters amidst the new curbs, said Lee Nai Jia, senior director & head of research at Knight Frank Singapore, and Christine Sun, head of research & consultancy at OrangeTee and Tie.
And while the resale market’s outlook remains subdued, Lee expects activity to “pick up after the Chinese New Year period next year”.
“The overall resale price index may also ease, but may be uneven across the regions,” he said.
Sun expects resale properties within prime districts 1, 2, 4, 9, 10 and 11 to continue to attract buyers – just like those located near MRT stations, shopping malls and other amenities.
“Come late-September, we should see transaction volumes in the new sale market start to pick up without price declines,” said Cheong. “This should shore up the resale market.”
Cheong likened the current trend in the resale market to that of a ‘vehicle hitting a speed bump’ since it takes its cue from new sales by developers.
“And if there is a dearth of launches or if the first-weekend performance at new launches is tepid, then the resale market will follow likewise,” he added.
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Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com