Property analysts from the real estate agents Huttons, PropNex and Singapore Realtors Inc (SRI) discovered an rise in foreign buyers throughout the month. The number of resales for condominium transactions in the prime district (CCR) or core central region (CCR) was up 23.3 percent compared to March.
The CCR was responsible for 22.8% of all transactions for resales, but was far behind by suburbs (outside central region, also known as OCR) at 45.4 percent, and the remainder central region, or RCR, or city fringes, which contributed for 31.8 percent.
The Residences at W Singapore Sentosa Cove, and Cuscaden Reserve were advertised by developers as multiple units. This attracted people looking to buy a property for resales at a lower cost.
Apartments available offered for sale in The Residences at W Singapore Sentosa Cove were transacted for an average price of $1,789 per sq ft. This is more than 40 per cent lower than the initial price.
Prices for resales of condominiums increased by 1.5 per cent in April following a downward trend for the past six months. The increase came at the time of the 13-month mark.
The 27th of May flash data released by the real estate portals SRX and 99.co showed that 1122 condominium units were sold for the month. This was up from the 910 units that were resold in March.
The number of sales recorded in April was 17.6 percent more than the average over the last five years.
Singapore’s excellent living and business climate could draw ultra-high net worth people. Singapore’s stability in the political landscape could be a significant factor in their decision to select Singapore as a location to reside.
In the first four months of 2024 47 caveats were submitted for condo resales by foreigners, a drop from 166 caveats filed in the first four months of 2023. Thirty-seven of the 47 were from US buyers.
A caveat, lodged by the Singapore Land Authority, secures the property for the buyer.
He anticipates that home sales will remain driven by Singaporeans and Singapore permanent residents in the near-term.
“One year following the introduction of an additional stamp duty of 60 percent for foreigners, as compared to the previous 30 percent rate, the percentage of private properties purchased by foreigners has increased.”
He believes new project launches could also have led to an increase in demand for resale condominiums.
The cost of new houses may have caused buyers to think about older, but less expensive condos that are resales located in the same spot. This is especially evident in areas where there are many new developments.
Prices for resales, however, inched up across all regions on the month. RCR was the first region to increase by 2percent increase, then CCR which gained 0.3 percent. The OCR prices were marginally up by 0.1 percent.
Prices for resales increased by 5.1 percent over the last year. The OCR saw the largest gain of 7.2 percent, being followed by RCR which was up 5.2 percent as well as CCR which increased only 0.2 cents.
Subsales transactions comprised 9.2 per cent of all secondary sales, which was up 0.1 percentage point over March.
Sub-sale deals refer to secondary sales that are made prior to the project’s conclusion, while secondary-sale transactions include resales and sub-sale transactions.
The most expensive condo resold in April was a $13 million condo at The Marq on Paterson Hill in River Valley.
In the RCR the highest price for a transaction was $8.3million for a unit at The Peak, Queenstown. The OCR’s Windy Heights unit, Kembangan earned $5.36million in its unit.
The overall median capital gain on condos resold stood at $337,000, down by $40,000 compared to the month prior.
District 10 (Tanglin and Holland) recorded the largest median capital gain of $763,000, while District 1 (Boat Quay, Raffles Place and Marina) had the lowest median capital gain of $2,000