Condo resale prices surged 10.3% in 2021, with sales up nearly 82%

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SINGAPORE – Prices of resale condominium units climbed 10.3 per cent last year, underscoring the hot property market that triggered new cooling measures in mid-December.

In 2020, condo resale prices gained just 1.4 per cent.

This comes after resale prices rose in December by 1 per cent, marking the 17th consecutive month of growth, according to flash figures by 99.co and SRX Property released on Tuesday (Jan 11).

Mr Pow Ying Khuan, head of research at 99.co, said the minimal impact of the cooling measures on December’s prices is “not surprising” as most deals would have been in their final stages when the measures kicked in on Dec 16.

“It’s expected that the full impact of the higher additional buyer’s stamp duty (ABSD) and tightened total debt servicing ratio (TDSR) may only be fully reflected in the next few months,” he said.

“For now, the tightened TDSR serves as a pre-emptive measure to prevent over-leveraging, especially with impending interest rate hikes, as a mere drop of 5 per cent will likely not affect affordability significantly,” Mr Pow added.

Resale transactions fell for the fourth straight month in December with an estimated 1,563 units changing hands, down 1.2 per cent from the 1,582 units in the previous month.

But resale volume for the whole of 2021 jumped by 81.8 per cent over 2020 to an estimated 20,079 units, 99-SRX data showed.

PropNex Realty head of research and content Wong Siew Ying said the dip in transactions in December was likely due to seasonality as more people went on year-end breaks for the first time since Covid-19 hit.

Last month, mass-market condos in the suburbs accounted for the lion’s share of the sales volume at around 59.1 per cent. Homes in the city fringes accounted for 23.7 per cent, while the remaining 17.2 per cent were in core central Singapore.

The highest transacted price for a resale condo unit last month was $14.8 million for a unit at Altez, a 99-year leasehold condo in Tanjong Pagar.

In the city fringes, the highest transacted price was $7.2 million for a 99-year leasehold apartment at Corals At Keppel Bay in HarbourFront.

In suburban areas, a unit at freehold Grand Duchess At St Patrick’s in the Marine Parade area sold for $3.95 million.

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