After 4 months of price-increments in the resale condominium market, prices have slipped slightly in June by 0.4%.
Overall condominium prices 1.6% higher than last year
Despite last month’s fall in private resale condominium prices following a 0.4% increase in May, the overall condominium prices are still 1.6% higher than in June 2018. The largest decline of 0.7% came from condominiums in the core central region (CCR) while prices of those outside the central region fell 0.4%.
Analysts say last month’s decline in prices of luxury homes in the core central region could be due to fewer sales. Sales volume of resale condominiums also dipped in June with just 666 units sold, down 20.5% from the 838 units sold in May.
Only 11 resale condominiums were sold above $3,000 psf last month; compared to the 19 units which were sold in May with 2 sold at above $4,000 psf. However, with 6 out of 11 of the world’s Super Penthouses located in Singapore, a sale of just one may very well boost numbers.
More project launches in months ahead of expected to boost figures
There may perhaps be more concern about the year-on-year 41.8% decline in sales volume in comparison to June last year.
One must, however, remember that last year’s property cooling measures were meted out in July, which meant that June’s numbers would still have reflected the buoyant market forces at that time.
In addition, June was the school holiday period and buyers may have been out of the country or putting their buying on hold.
Analysts are hopeful that with more launches of new projects coming up in the months ahead, the resale private condominium market may experience some spillover from that sector especially if the prices of the floor area of new units do not suit their expectations.