The real estate market’s recovery seems to be forging ahead with prices of resale condominiums up once more. This time hitting a new high.
Prices of resale condominiums rise by 1.5%
Island-wide, prices of resale private apartments rose by 1.5%. This increment is even higher than February’s peak and gives hope to the journey ahead.
Resale prices of condominiums in the core central area rose the most with a 2.2% increase. In the rest of the central region (RCR) and outside the central region (OCR), prices rose 1.3%. URA’s flash estimates showed that prices in the first quarter of this year were 3.5% higher than the last quarter of 2017. In a year-on-year comparison to 2017, there was an 8.5% increase.
Resale volume rising steadily
Some property sector practitioners are seeing more buyers coming from a pool of owners displaced by en bloc sales. They are buying now rather than waiting for en bloc deals to be completed as they expect resale prices to climb even further.
This may have contributed to the rise in sales volume in the secondary market. This pool of buyers is more likely to purchase ready-to-live-in homes rather than wait for new properties to be built. The latter could take anything from 2 to 4 years on the average.
Last month’s resale volume rose 11.4% with 1,310 units sold. In the months ahead, prices are expected to continue to grow in parallel with the demand for resale homes.