The price difference between CCR and RCR for resale condos is the lowest in 22 years
Hungry Ghost Festival & high interest rates contributed to slower sales in both quarters. Realis statistics from Urban Redevelopment Authority show that 3,121 units were purchased in the Q3 2023 whereas 2,748 ECs were not sold.
CCR resale dropped to 476 units at the end of Q3 and RCR to 808 unit from 954 during that same period.
There was the slightest decline in home sales for homes located in the suburbs of the OCR – down 8.8 % to 1 464 units from 1605 units in Q2.
Sun forecasts a resilient demand for condos, especially those in OCR or suburban areas.
As more properties are completed on the secondary home market, this may reduce the “rampant prices”.
Find out more about: The Continuum condo
Sun reported that “the overall resale pricing may continue to rise, but at a much slower pace, between 4 percent to 6 cents per unit, in 2023 compared with an increase of 8.7 cents per unit in 2022,” he said.
The median price psf differential between CCRs excluding ECs as well as RCRs has been reduced to just 17.5% for the third-quarter, down from the 24.1 percent in the prior quarter and the 27.5% recorded in Q1.
Christine Sun (senior vice-president for research and analysis at OrangeTee & Tie) said the difference between prices in the third quarter was 14.5 percent, which is lowest since Q3 2002.
Sun says that over the past few years the RCR price gap has grown more rapidly than the CCR.
It was noted that after the pandemic started, there were significant price reductions. In the third quarter of 2023 median prices in CCR for condos that were resold rose 13.6 percent to S$2,011psf and for RCR they increased 26.2 per cent, to S$1,711.
Sun has attributed price increases in RCR over the past few years to an increase in condominiums that have Temporary Occupation Permits (TOP). As a result, these units are more likely to be sold at higher prices.
“Around 12800 units received TOP in RCR in 2020-H1-2023. They exceeded the estimated 3300 units in CCR. Sun continued, adding that private homes at the fringe of cities are in greater demand because they remain more affordable compared to luxury homes.
Singapore resale prices in three different market segments rose a little in the third quarterly.
OrangeTee & Tie’s report from Tuesday (October 24) indicated that non-landed home prices and landed house prices in Core Central Region, excluding executive condominiums(ECs), rose by 0.3 percent in Q3-2023 to S$2,087 psf compared to S$2,080 psf psf at Q2-2023.
As of Q3 of 2020, prices of homes for sale in the Outside Central Region and the Rest of Central Region rose by S$1,421/sq.ft. respectively.