Condo Resale Volumes in August
According to flash estimates from SRX and 99.co, condo resale volumes in August 2024 saw a slight decrease. The data revealed that approximately 1,080 units were resold, representing a 1.7% decrease from the previous month.
Year-on-Year Comparison
While the resale volumes in August 2024 were down, the median unit prices of non-landed resale transactions in the city fringe (Rest of Central Region or RCR) and the suburban Outside Central Region (OCR) held firm. The year-on-year comparison shows that condo resale prices were 7.6% higher in August 2024 compared to the same period last year.
Resale Volume Trends
The number of units resold in August 2024 was also lower than the five-year average for the month, with a 16.6% decrease compared to August 2022 and an 8.3% decrease compared to the five-year average.
Suburban Gains
Resale prices of condominiums in August 2024 saw a 1% increase, primarily driven by higher prices in suburban locations. This reversal of the two previous months of decline indicates a positive trend in the suburban market.
Sub-Sale Transactions
The number of sub-sale transactions, which are secondary sales inked before the project is completed, reached 11.6% in August 2024. This represents a 0.5% increase from the preceding month. The rise in sub-sale transactions might be correlated to the lack of new launches available, as buyers now turn to new already-built units.
Project Launches and Market Dynamics
Although there were five project launches in August 2024, these were all small or mid-sized developments with fewer than 500 units. The largest project, Altura – an executive condominium – came with restrictions on purchases. The higher price increases in the OCR are “within expectation” as more projects in the suburbs have reached their Temporary Occupation Permit (TOP) in recent months, and newer condos tend to fetch higher prices.
Economic Outlook
The robust public housing market may continue to support the resale condo market, but the cloudy economic outlook and high interest rates may temper overall price gains. Huttons’ Yip cautioned that the overall price gains might be around 8% in 2024.
Conclusion
In conclusion, while condo resale volumes dipped slightly in August 2024, the median unit prices in the RCR and OCR remained stable. The rise in suburban prices and the increase in sub-sale transactions indicate a shift in market dynamics. Buyers are awaiting interest rate cuts to potentially boost the resale market further. As the market continues to evolve, it will be interesting to see how these trends unfold in the coming months.
