February’s resale condominium prices rose 1.9% which indicates that the secondary market for non-landed residential properties is strengthening.
Resale non-landed property price increase expected
The last property boom was in January 2014, and February’s resale prices of condominiums and private apartments have finally surpassed that. February’s figures showed a promising increase from the 1.3% rise from December last year.
Prices of resale properties in the core central region (CCR) rose 6.2%. But the real rallying came from the rest of the central region with a 11% price increase. Resale prices outside the central region rose 6.2% as well.
Not only was there a rise in resale condo prices, but also in resale volume. 1,212 private homes were sold in February, making it a 11.3% rise from January’s numbers. While the numbers are still 41% lower than the peak in April 2010, compared to the same month last year, where only 719 units were sold, there has been a significant improvement of a 68.6% increase.
Completed condominiums in demand as buying sentiments remain buoyant
Industry experts are not surprised by the consistent market recovery as buying sentiments have remained buoyant since last year.
The lack of new launches in the first few months of the year have also kept buyers interested in existing launches and units. In the months ahead, homeowners whose homes have been sold en bloc may soon join the buying crowd. They may prefer completed condominiums as they will need a place to stay soon and waiting for a new condominium may not be feasible.
The rental market may also experience some trickle-down effect though there are numerous options available thus it is still very much the tenants’ market.