Singapore Resale Condo Market Soars : Singapore’s resale condominium market has experienced remarkable growth, with an 11% increase in transactions from January to August 2024, totaling 8,823 units. Resale homes now comprise 72% of private home sales, peaking at 78% in August.
This surge is driven by increased housing supply, affordability relative to new launches, and strong demand from HDB upgraders. The leasehold and older resale condo segments have gained popularity, reflecting evolving buyer preferences. While economic challenges loom, the overall outlook remains positive, with the potential for further insights if one were to explore the details.
Resale Market Growth Trends
The resale condo market in Singapore has shown remarkable growth despite the prevailing high-interest rate environment. An impressive 11% increase in resale transactions, reaching 8,823 units from January to August 2024, demonstrates the market’s resilience.
This growth is in line with the broader private residential property trends, which have seen prices rise consistently over the years. Resale homes now account for a significant 72% of total private home transactions, peaking at 78% in August.
This shift is particularly significant, as the market had previously stagnated post-2013 due to the implementation of the Total Debt Servicing Ratio. The surge in demand is driven by factors such as increased housing supply, the perceived affordability of resale properties, and the growing popularity of leasehold and older resale condos among buyers, including HDB upgraders.
Driving Factors for Demand
A confluence of factors has fueled the resurgent demand in Singapore’s resale condominium market. Increased housing supply, coupled with the perception of resale properties as more affordable compared to new launches, has driven buyer interest.
Local investors are increasingly stepping into the market, filling the void left by the retreat of foreign buyers due to high additional buyers stamp duty rates. Importantly, leasehold and older resale condos are gaining popularity, as they offer spaciousness and greater value.
In fact, leasehold units now account for 60% of resale transactions, with older leasehold properties (30+ years) seeing a rising market share of 11%. This trend highlights the appeal of market affordability for prospective homeowners seeking quality living spaces without the premium price tags of newer developments.
HDB Upgraders’ Influence
One-third of all resale buyers in 2024 were HDB upgraders, a significant segment that has played an essential role in driving the resurgence of Singapore’s resale condominium market.
This trend has emerged even as new private home sales hit a four-year low in April 2024, highlighting a shift in buyer behavior towards the resale market.
HDB owners, empowered by the surge in HDB resale flat prices, are seizing the opportunity to upgrade to private properties.
The immediate occupancy and financial advantages of purchasing resale condos, without incurring additional stamp duty, further incentivize this trend.
As HDB upgraders account for 2,750 units, up 14% from 2023, their influence on the resale market dynamics continues to grow, contributing to the overall positive outlook for Singapore’s real estate sector.
Transactions and Statistics
Singapore’s resale condominium market has seen a significant surge in transaction activity, with compelling statistics that underscore the growing demand for resale properties.
In 2024, the number of HDB resale flats sold at or above $700,000 reached a staggering 5,036 units, a substantial increase from 3,517 in 2023 and just 1,057 in pre-pandemic 2019. This reflects the market dynamics driven by HDB upgraders, who accounted for one-third of all resale buyers last year.
Additionally, landed property transactions rose from 825 in 2023 to 989 in 2024, driven by buyer demographics seeking larger units in suburban areas.
These figures highlight the resilience and evolving preferences in Singapore’s thriving resale condo market.
Future Market Outlook
Interest rate cuts by the US Federal Reserve may provide a catalyst for stimulating the real estate sector and its future prospects.
With a projected decline in housing stock, the resale condo market may see stabilization or even price increases. Condominium completions are expected to drop markedly in 2024 and 2025, before a moderate rise in 2026, potentially limiting supply and supporting market demand.
While economic challenges loom, the overall outlook for Singapore’s resale condo market remains positive.
Savvy buyers and investors may find promising opportunities in the coming years as interest rate fluctuations and housing supply dynamics shape the trajectory of this dynamic market segment.
Singapore Resale Condo Market Soars : Conclusion
The resale condominium market in Singapore has exhibited remarkable resilience, with a significant 11% increase in transactions from January to August 2024, accounting for an impressive 72% of total private property transactions. Increased housing supply, the perceived affordability of resale properties, and the growing influence of HDB upgraders have driven this resurgence. The future outlook for Singapore’s vibrant resale condominium market remains optimistic.