Number of condo units resold hits 10-year high

1,662 units were resold last month, more than double in the same period last year

The private resale housing market, which has so far defied the pandemic-induced recession, remained buoyant, with the number of condominium units resold last month hitting the highest level seen in nearly 10 years.

Prices of private resale condos also rose for the eighth consecutive month.

Buyers were out in force last month as sales rebounded by 28.9 per cent to an estimated 1,662 units - the highest number since May 2011 - from 1,289 units in February, with its Chinese New Year lull.

This makes last month the ninth straight month to see more than 1,000 private resale units change hands, according to flash data from real estate portal SRX released yesterday.

The robust private resale market has sparked talks of another round of property cooling measures in the wake of recent ministerial remarks that the Government is keeping a close watch on the market.

Sales last month were also 122.5 per cent higher than in March last year, and 75.3 per cent more than the five-year average volume for the month of March.

Condo resale prices edged up 0.1 per cent from February - rising for the eighth consecutive month - and were up 4.2 per cent over March last year.

Homes in the suburban areas - outside the central region - accounted for the biggest proportion of private resale transactions, at 60.2 per cent.

Ms Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, said: "This indicates that the resale market is currently driven by demand for more affordable homes, especially mass market resale homes in suburban regions."

Demand could also have been pushed up by the lack of new units in the suburban areas and rising new home prices, she said.

ERA Realty head of research and consultancy Nicholas Mak said price growth was driven mainly by homes in central Singapore, where prices rose 1.1 per cent last month from the month before.

He noted that Midtown Modern in Bugis and Irwell Hill Residences, off River Valley Road, were both recently launched and piqued buyers' interest.

"Buyers expect the new launches to be priced higher than the resale properties in terms of dollar per sq ft of strata space. As a result, some buyers turn to the resale market," said Mr Mak.

The highest transacted price for a private resale unit last month was $18.3 million for a unit at Eden in Draycott Park, according to SRX data.

This article first appeared in The Straits Times.