Instead of abating, collective sales have continued to fill the market. And the effects have spilled over to the private condominium and apartment sector.
Collective sales prove to have a positive effect on non-landed private home prices
Prices of these private non-leaded properties have increased once more last month. Prices of resale private properties rose 1.2% in May. Compared to last May, prices have risen 10.8%.
As land acquisitions become pricier, so have the launch prices of new developments. Prices of resale properties in the vicinity have thus risen concurrently. These plus rising buying interest and demand have been the main driving factors for recent market improvements.
Analysts have observed consistent 1% monthly increases in all market segments this year.
Aside from resale prices, sales volume have also risen. 1,560 units were sold in May, making the resale volume 0.6% lower than April’s. This most recent dip is slight but the general upswing is strong. In comparison to May 2017, however, when only 1,243 units were sold, sales volume has increased by 25.5%.
Buyers most active in prime districts with TOX reaching $18,000
In district 9, buyers were most eager to purchase units, even paying an average of $18,000 above the median resale price. There were more than 10 resale transactions here last month. Areas, where buyers paid under the average price, was in Kranji and Woodgrove in District 25.
Collective sale and buying momentum looks set to continue well into the second half of this year. Some analysts are hopeful for continued price-rises in the rest of central region and outside central region, especially as those whose home has been sold in en bloc deals may be looking for smaller private units or slightly larger ones in the city fringes.