5 mths of consecutive growth, pte resale condos dropped by 0.8 percent in Jan

SINGAPORE: Condominium resale price rose for five months in a row, but analysts say it’s too early to tell if the prices have stabilized.
Flash data from Singapore Real Estate Exchange (SREX) and, two real estate portals, showed that resale prices fell by 0.8 percent in January, following a 0.5 percent increase in December.
The interest rates are still high and buyers are less willing to pay high prices on resale condominiums. This has moderated the prices in January.
Even then, the resale price in the prime segment increased by 1.4%, while the prices in the suburbs rose by 0.2%.
Prices in the suburbs are being supported by newly completed homes.
The resale price in the city’s fringe dropped by 0.6%, resulting in a 0.7% rise in the region in December 2023.
There were many older resale apartments that were sold for a lower price and had a larger floor space. They are very popular with buyers looking to buy their own place.

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Data showed that condo resale values rose by 7.2% on an annual basis. Prices in the suburbs were the highest, at 9.9%.
It’s too early to tell if the drop in resale values is a temporary blip, or the start of a correction.
Prices may continue to increase in 2024, as less condos will be built. This could lead to a shortage of supply.
In January, the resale volume fell by 0.6%, from 745 to 740 units. This is the third consecutive month that resale volumes have declined.
The drop in sales was attributed to the cautious market sentiment and seasonal slowdown between the end of the year and the start of the next year.
“Feb’s resale activity will be relatively low due to the Chinese New Year celebrations and holidays,” referring to the festival that runs from February 10 to 24.
Some buyers are more cautious when buying an apartment because they worry about inflation or the uncertain economic outlook.
Some people may be waiting for interest rates to moderate further in the hope that housing prices will become more affordable.
The resale industry is still healthy, as the volume of resales has increased by 43,7 per cent since January 2023.
The number of transactions in January was also 0.4% higher than the average of the last five years.
As more residential developments come online in the next months, private home prices will rise.
Prices of condos for resale could increase by up to 6% in 2024, thanks to the higher prices of new condo launches.

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