Condominium resale prices rose for the fifth straight quarter but at a slower pace in Q2 2023. According to the Urban Redevelopment Authority (URA) Realis data, the average price of resale non-landed homes excluding executive condominiums (EC) rose by 0.6 per cent from S$1,614 psf in Q1 2023 to S$1,624 psf in Q2 2023 (Chart 1). 

Last quarter’s price growth was smaller than the 2.9 per cent increase in the preceding quarter. Year on year, prices accelerated by 7.8 per cent from S$1,507 psf in Q2 2022. 

By market segment, condominium resale prices in the prime districts or Core Central Region (CCR) fell by 0.8 per cent from S$2,200 psf in Q1 2023 to S$2,183 psf last quarter (Chart 2). Conversely, prices for resale condominiums in the city fringe or Rest of Central Region (RCR) grew by 2.7 per cent from S$1,666 psf to S$1,711 psf over the same time period, while those in the suburbs or Outside of Central Region (OCR) rose by 2.8 per cent from S$1,334 psf to S$1,371 psf.

Demand remains resilient despite new cooling measures implemented in April 2023. Sales were propped up by more condos being completed and put up for sale in recent months. According to URA Realis data, 2,376 resale condominiums were sold in Q2 2023, slipping only slightly by 1.5 per cent from 2,413 units in Q1 2023 despite higher prices (Chart 3). 

Resale volume dropped the most in CCR by 17.7 per cent from 513 units in Q1 2023 to 422 units in Q2 2023. Resale volume in the OCR fell slightly by 0.7 per cent, from 1,206 units to 1,198 units over the same period. Resale volume in RCR, on the other hand, rose by 8.9 per cent from 694 units in the first quarter to 756 unitsin the second quarter of this year.  

By proportion of total non-landed resale transactions, the lion’s share came from OCR at 50.4 per cent, followed by RCR at 31.8 per cent and CCR at 17.8 per cent in Q2 2023. 

By unit sizes, resale condominiums of at least 800 sqft but less than 1,200 sqft were most popular, constituting 34.4 per cent of the 2,376 total transactions. This was followed by units of at least 1,200 sqft but less than 1,600 sqft (22.2 per cent). 

30.1 per cent of resale condos sold in Q2 2023 were at least S$1 million to less than S$1.5 million, while 23.9 per cent were at least S$1.5 million to less than S$2 million, indicating that S$1-2 million is the current sweet spot for resale condominiums. 

Last quarter’s best-selling resale condominiums were The Bencoolen (31 units, average price S$1,622 psf), High Park Residences (23 units, S$1,491 psf), Petit Jervois (22 units, S$2,597 psf), Stirling Residences (20 units, S$2,271 psf), D’Leedon (16 units, S$1,860 psf), Kingsford Waterbay (16 units, S$1,368 psf), and Reflections at Keppel Bay (16 units, S$1,844 psf) (Chart 4). 

The most popular districts with the most nonlanded resale transactions in Q2 2023 were District 15 (238 units), District 19 (237 units), District 10 (169 units), District 18 (160 units) and District 23 (155 units).

The resale market will likely see more sales activities in the second half of the year as more condominiums will be completed. The plethora of newly completed units will push housing supply to a seven-year high which may continue to stabilise property prices. 

Completed projects in suburban areas, especially those with big units, will remain popular in the era of flexible work model. About half of this year’s completions are in the OCR, which may ease some pent-up demand from HDB upgraders. 

We estimate that the total resale volume may reach 10,000 to 12,000 units this year. Overall resale prices may rise at a slower pace of 5 per cent to 7 per cent in 2023, down from 8.7 per cent in 2022.