This upward trend is in line with the increase in sales of private new homes and HDB resale, signalling the recovery from the COVID-19 crisis, according to experts.
The demand for resale condo in Singapore hits a two-year high this October, with approximately 1,509 units sold, rising to 21.6% from the previous month.
Resale volumes of private non-landed homes were 72.9% higher year-on-year and 78% higher than the five-year for the month of October, reported The Business Times (BT) in reference to the flash figures from SRX Property.
The entering of new buyers into the market signals the recovery from the COVID-19 crisis, according to research heads at PropNex and ERA on Tuesday.
Sales from outside the central region (OCR) saw the majority of the overall volume at 58%, followed by 25.3% from the rest of central region (RCR), and 16.8% from the core central region (CCR).
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Overall prices of resale condominiums have risen to 0.8% from September, and 0.7% higher year-on-year. Prices have risen in all regions: OCR by 0.8%, RCR by 1%, and CRC by 0.5%.
Comparing to 2019, resale condo prices in OCR and RCR have risen by 0.9% and 1.9% respectively, while CCR prices have dropped by 2.9%.
PropNex’s head of research and content Wong Siew Ying observes that buyers entering the market believe that the worst may be over for the pandemic-hit economy. The upward demand for private resale is in line with the increase in sales of private new homes and HDB resale, she added.
Nicholas Mak, ERA Realty’s head of research and consultancy, says that the figures show that the Singapore private resale non-landed housing market has more than recovered from the COVID-19 pandemic.
Suggested read: How Do You Sell Properties During COVID-19?
The strong demand for properties across the various market segments has spurred more sellers to put up their units for sale, according to Christine Sun, head of research and consultancy at OrangeTee & Tie.
Sun believes that sellers are more open to negotiating prices in light of the pandemic, resulting in more deals being closed in recent weeks.
As Singapore continues to see stability in the COVID-19 situation and prepares to enter Phase Three, sales volume is expected to increase slightly to between 9,000 and 10,000 resale homes in 2021. Sun estimates that around 8,500 to 9,000 units could be sold this year.
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