Following the collective sales fever of the past few years, prices of new condominium units are now increasing.
The number of pricier apartments made available in the market have risen rather significantly.
24% of apartments priced below $1 million
In the first quarter of the year, 37% of the market share was made up of apartments priced $1 million and below. Now, their market share is only 24%.
On the contrary, 5% of new units are now priced $3 million and above, up from the previous 3%. These figures apply only to new apartment units.
Analysts say this reflects the high prices developers have previously paid for acquiring land through en bloc sales from 2017 to mid-2018. It could also be due to the fact that developers are increasing average unit sizes and buyers are showing preferences for larger units.
Resale condo prices remain stable
Prices of resale condominium units have however remained stable. About 24% of resale units were priced below $1 million in Q1. Sales volume of resale condominium units priced above $3 million increased from 8% in Q1 to 11% in Q2.
Overall, sales of new non-landed projects rose 7.4% from the same period last year.
The transaction volume of new apartments is expected to reach between 8,000 to 10,000 this year and analysts are cautiously optimistic about the year’s forecast.
16 new projects were launched in Q2, 6 more than the previous quarter. However, the 2,700 units launched were much lower than the 4,900 units launched in Q1.
In the second half of the year, the demand for non-landed units by foreigners is expected to increase while more new projects may mean a pickup in sales in H2.