Sales volumes for resale condominiums in Singapore grew 528.7% from last year, to hit an 11-year high of 1,993 transactions in April 2021.

Singapore saw 1,993 resale condominiums sold in April, up 528.7% from last year and 125.2% higher as compared to the five-year average volumes seen for April. The figure also marks the highest since April 2010, reported Singapore Business Review (SBR).

The hike comes as buyers now shun renting but could not wait for new projects to be completed, said Wong Siew Ying, Head of Research and Content at PropNex. 

With new residential projects taking longer to complete, investors are also turning to resale condos for fear of losing rental income.

“In view of these considerations, the demand for resale properties will likely remain healthy, supported by buyers who prefer move-in ready properties in order to avoid the uncertainty around completion delays. In addition, the substantial price gap between new sale and resale properties may also encourage some buyers who have a tighter budget to look at the resale market,” said Wong as quoted by SBR.

He expects interest in resale properties to remain high, on the back of potential delays in new housing projects as the construction sector faces a manpower crunch due to the travel restrictions brought about by the COVID-19 pandemic.

Christine Sun, Senior Vice President of Research and Analytics at Orange Tee, revealed that the Outside Central Region (OCR) accounted for over 50% of April’s resale volume.

“Many HDB flat owners have sold their flats in recent months and are searching for affordable, completed homes. Therefore, demand for resale homes may continue to increase in the coming months since prices of new homes are rising in many locations and the supply of mass-market condominiums remain limited,” she said as quoted by SBR.

Some HDB upgraders may have also acquired homes within the Rest of Central Region (RCR), which accounted for 23.7% of total resale units last month, she added.

Commenting on sales, Sun believes landlords sold their condominiums due to the uncertainty surrounding the retail market since it may take a while for foreign tenants to return.

By Cheryl Chiew