In July 2024, Singapore’s condominium resale market experienced significant activity, with notable price increases, robust transaction volumes, and substantial capital gains. The Core Central Region (CCR), Rest of Central Region (RCR), and Outside Central Region (OCR) each witnessed varying degrees of growth, underscoring the enduring resilience and appeal of Singapore’s real estate market.
This article delves into the key trends and statistics that shaped the market in July, offering valuable insights into the performance of different regions and the overall market landscape.
But before that, read last month’s Flash Report cover: June condo resale prices in RCR up by 1.3%, volumes in all regions drop 29.9%
Table of contents:
- Price increase: CCR by 2.8%, both RCR and OCR by 0.4%
- An estimated 1,075 units were resold in July, a 32.2% increase from June
- The highest transacted price for a resale unit was S$14,200,000 at Nassim Park Residences
- The overall median capital gain for resale condos was S$379,000, an increase from June
- The overall median unlevered return for resale condos was 31.4%
- Main takeaway
Price increase: CCR by 2.8%, both RCR and OCR by 0.4%
The CCR segment experienced a significant 2.8% price increase, contributing to the overall upward trajectory of Singapore’s real estate market. Similarly, the RCR and OCR segments grew, with prices rising by 0.4%. These changes indicate a broader resilience trend in the resale condominium market across diverse geographical areas.
According to the SRX Price Index for Condo Resale, there has been a 0.8% month-on-month price increase in the overall market compared to June 2024. This upward trend perpetuates the consistent growth observed throughout the year.
Compared to July 2023, overall prices demonstrated a 5.5% year-on-year increase, indicating sustained market demand and price appreciation. A detailed analysis reveals a 2% increase in the CCR. In comparison, the RCR and OCR regions experienced substantial gains of 7.1% and 6% respectively. These findings underscore the enduring confidence in Singapore’s property market, as all regions exhibited positive growth trends.
An estimated 1,075 units were resold in July, a 32.2% increase from June
In the condominium resale market, there has been a notable surge in activity, with approximately 1,075 units being sold. This reflects a 32.2% increase from the 813 units resold in June, signalling a robust resurgence in buyer interest.
The increase in resold items was not limited to a month-to-month trend; it also manifested in year-over-year comparisons, with volumes showing a 21.7% increase compared to July 2023. In addition, resold items exceeded the average for the month over the past five years by 9%, highlighting the market’s strong performance.
Regarding regional breakdown, OCR dominated with 51.9% of the total resale volume, followed by RCR at 31.1% and CCR at 17%. This distribution underscores the enduring attractiveness of properties in the OCR, where affordability and value-for-money continue to be significant factors driving buyer interest.
The proportion of sub-sale transactions, referring to secondary sales before a project’s completion, accounted for 7.1% of the total secondary sale transactions (resale + sub-sale). This represents a 5% decline from June 2024, indicating that while the market for resale properties remains robust, there has been a slight decrease in the demand for sub-sale transactions.
The highest transacted price for a resale unit was S$14,200,000 at Nassim Park Residences
One of the notable transactions in Singapore’s condominium market involved the resale of a unit at Nassim Park Residences in the coveted CCR area, fetching an impressive S$14.2 million, the highest recorded resale price for that month. This sale underscores the enduring allure and value of luxury properties in the CCR, where prime locations and exclusive developments consistently command substantial market prices.
The top transacted price within the RCR area was recorded for a unit at Corals at Keppel Bay, amounting to S$6.78 million upon resale. This transaction highlights the robust demand for waterfront residential properties and upscale developments in the RCR region, where real estate offerings present a distinctive combination of opulence and proximity to essential amenities.
In the same vein: Condo Cash or Crash? Record high S$14.543M for a 4,209 sqft 4-room condo in District 11
In the OCR region, a record-breaking resale transaction occurred at Ocean Park, with a unit being sold for S$5.68 million. This transaction underscores the increasing appeal of the OCR, as there is a growing demand for larger units in well-established neighbourhoods, even at higher price points.
The overall median capital gain for resale condos was S$379,000, an increase from June
The recent sales data indicates a notable increase in the median capital gain for resale condominiums in Singapore, reaching S$379,000. This represents a S$58,000 rise compared to figures from June 2024. The upsurge in capital gains suggests that both investors and homeowners are reaping the benefits of escalating property values across the island, further bolstering the appeal of Singapore’s real estate market.
District 15 (East Coast/Marine Parade) has demonstrated remarkable performance by achieving the highest median capital gain of S$631,000 compared to other districts. This substantial increase underscores the enduring allure of properties in this locality, renowned for its seamless integration of coastal living, vibrant community, and convenient access to the city centre.
In contrast, District 1 (Boat Quay/Raffles Place/Marina) recorded the lowest median capital gain at -S$67,000. This negative capital gain indicates a possible short-term correction in property values within this prominent business district or suggests that resale properties in the area were sold at a loss relative to their original purchase price.
The overall median unlevered return for resale condos was 31.4%
The median unlevered return for resale condominiums in Singapore is 31.4%. This figure indicates the percentage increase in value that property owners have realized upon selling their properties, showcasing the profitability of investing in Singapore’s condominium market.
District 21 (Clementi Park/Upper Bukit Timah) has demonstrated remarkable performance, with the highest median unlevered return of 49.7%. This significant return underscores the district’s robust appreciation of property values, attributed to its abundant green spaces, renowned educational institutions, and suburban allure. It is a preferred choice for families and astute long-term investors.
In contrast, District 1 (Boat Quay/Raffles Place/Marina) reported the lowest median unlevered return at -4.8%. This negative return indicates that certain resale transactions within this prominent business district may have incurred a financial loss compared to their initial purchase prices. Factors such as market fluctuations or shifts in the demand for properties within this vibrant commercial centre could influence this situation.
Determining capital gains and returns for a resale condo unit involves comparing its current transacted price with its previous transacted price. Notably, districts with fewer than ten matching transactions are excluded from the ranking to ensure accurate reporting, offering a more dependable overview of market performance.
Main takeaway
The resale market for condominiums in Singapore demonstrated robust performance, with significant price increases and transaction volumes. Notably, CCR spearheaded price escalation, while OCR exhibited dominance in transaction activities.
A little palette cleanser: Upgrading from an HDB flat to a condo? The guide to end all guides
In specific regions, notably Districts 15 and 21, significant capital gains and unlevered returns were noted, underscoring the potential profitability of real estate investments in these areas. Conversely, District 1 encountered impediments, experiencing diminished capital gains and unlevered returns, reflective of a varied performance within the market.
Conclusion
These observations will be indispensable for purchasers, vendors, and investors in the rapidly evolving market as they navigate Singapore’s ever-changing real estate terrain. The movements in performance across various regions and the broader economic conditions are anticipated to influence the market’s trajectory significantly in the months ahead.
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As the real estate market develops, the insights above will prove indispensable for purchasers, vendors, and investors as they navigate Singapore’s dynamic real estate landscape. The shifting performance of different regions and the broader impact of economic conditions are expected to influence the market’s trajectory significantly in the months ahead.
Interested in more condo market news? Visit our condo news page for more!
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