Condo resale prices dip 0.8% after five straight months of growth

Elevated interest rates limiting buyers’ willingness to pay high prices, says analyst

Condominium resale prices dipped in January after rising for five consecutive months, but property analysts said it is too early to determine if prices are stabilising.

Resale prices declined 0.8 per cent in January, reversing the 0.5 per cent climb in December, flash data from real estate portals Singapore Real Estate Exchange and 99.co showed on Feb 26.

Mr Mark Yip, chief executive of property company Huttons Asia, said interest rates have remained high, limiting buyers' willingness to pay high prices for resale condos, which moderated prices in January.

Even then, resale prices in the prime segment continued to rise by 1.4 per cent, while those in the suburbs inched up 0.2 per cent.

Mr Eugene Lim, real estate firm ERA Singapore's key executive officer, said there have been more high-value transactions in core central Singapore, and prices in the suburbs have been propped up by recently completed homes.

He noted that resale prices in the city fringe fell by 0.6 per cent, back-pedalling a 0.7 per cent rise in the area in December 2023.

"There were more older resale units that were sold at a lower price per sq ft and have larger floor area. These are popular among buyers who are looking for their own stay," he said.