CONDO resale volumes inched down in August – a decrease in sales which analysts attributed to buyers waiting for a potential interest rate cut.
Based on flash estimates from SRX and 99.co released on Tuesday (Sep 24) about 1,080 units were resold, representing a 1.7 per cent decrease from the 1,099 units transacted in July.
Volumes were 16.8 per cent higher year on year, and 5.2 per cent higher than the five-year average volume for the month of August.
“While August resale transaction volume is historically slightly higher than July’s since 2020, this year is the first time that transaction volume is lower,” said Luqman Hakim, chief data and analytics officer at 99.co.
The decline comes amid slight negative sentiment in purchasing private condos at this time and would-be condo buyers are waiting for reduced interest rates before making their move, he added.
Some analysts also pointed out that transaction volumes dipped marginally despite the Hungry Ghost Festival – indicating resilient demand within the market.
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Christine Sun, chief researcher and strategist at OrangeTee, said the resale volume has shown “a notable increase” compared to the same period last year.
“This increase indicates that there is still sustained demand for homes in the secondary market,” she said. “The price differential between new and resale properties remains considerable, and the price gap has led some prospective buyers to buy resale properties.”
By region, more than half (52.2 per cent) of the transactions came from Outside Central Region (OCR), 29.2 per cent came from the Rest of Central Region (RCR), and 18.5 per cent were from the Core Central Region (CCR).
Overall prices were relatively stable in August, with a slight decrease of
