Could the recent collective sales fever have had an effect on the resale condominium market? Quite possibly.
Resale condo prices rise 1% in January
In the first month of 2018 alone, resale condominium prices have risen 1%. The pace of increment is quick considering the fact that prices have been steady for at least a few quarters now.
The price-rise for resale non-landed homes is consistent island wide. Prices in the core central region, central region and outside central region rose 1.2%, 1.4% and 0.6% respectively. Compared to January 2017, resale condominium prices have risen 6.3%.
This is a promising sign as prices are now just 1.2% away from the last peak in January 2014.
More from condos sold en bloc looking for replacement homes
One of the factors for this quick spike in prices could be the increase in demand from homeowners who have been displaced through the en bloc process.
Those whose homes have been sold through the collective sales process will now need a new place. And the resale market is benefiting from this. They are less likely to purchase from new launches as these projects will only be ready in a few years’ time.
Another sign of a recovering real estate market is the 99.8% increase in resale volumes last month in a year-on-year comparison with January 2017. Both resale and new home prices rose 1.1% last year.
Other reasons cited for the recent climb in figures were a steady upturn in the economy and job market as well as the Government’s tweak of the seller’s stamp duty in March last year.