Condo resale volume continues to fall but prices hold steady: SRX

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Resale prices for non-landed private homes held steady last month despite sales volume continuing to fall during the second month of the circuit breaker period, according to flash figures from real estate portal SRX Property yesterday.

About 171 units were resold last month, similar to levels seen during the global financial crisis of 2009. This marks a 43 per cent decrease from the 300 units resold in April, according to SRX figures.

Last month's resale volume is also 80 per cent lower than in May last year, and 83.1 per cent off the five-year average volume for the month of May.

Overall, prices last month finished 0.1 per cent higher than in April. Year on year, they were 0.6 per cent lower than May last year.

Ms Christine Sun, head of research and consultancy at OrangeTee and Tie, noted that the sharp fall in volume indicates that the resale market could be highly dependent on physical house viewings.

She said: "Most potential buyers still prefer to inspect the premises in person and assess the condition of the units before making a purchase.

"Sales volume may pick up again when physical house viewings are allowed to resume."

Looking ahead, ERA Realty head of research and consultancy Nicholas Mak predicts that resale transaction volume this month will likely vary between 150 and 300 units, similar to April and last month, since buyers and agents are still not allowed to view homes.

"However, there could be a growing group of buyers and sellers waiting for the day that the restrictions are further lifted.

"The accumulation of pent-up demand could lead to a jump in transaction volume when the market participants are once again allowed to freely visit and view properties for sale," said Mr Mak.

SRX data also shows that the highest transacted price for a resale unit last month came from an apartment at Nassim Park Residences, which went for $10.6 million.

Ms Sun noted that 18 luxury apartments were resold for $10 million and above this year, of which three changed hands during the circuit breaker period.

"The ongoing sales of super-luxury condominiums during the circuit breaker period indicate that Singapore remains attractive to ultra-rich investors as a safe haven investment destination," said Ms Sun.